The 2025 Legislative Session starts in two months. What factors will impact the options available to state leaders?
The election hasn’t been certified at this point and there are still some relatively close races, but it is clear that Democrats will add to their large majorities in both chambers in Olympia and maintain control of all nine statewide executive offices. Three initiatives failed, meaning the state’s Climate Commitment Act, capital gains tax, and long-term care program remain intact. However, any state or utility driven policies that could restrict natural gas service would conflict with the state’s newest law, following the passage of Initiative 2066.
Washington will have a new governor and a new attorney general for the first time in twelve years and a new insurance commissioner for the first time in twenty-four years and a change of command in various leadership positions.
Barring a major change in the pending November 20th revenue forecast, lawmakers will be confronted with difficult funding decisions right out of the gate. On November eighth, the director of the Office of Financial Management reported that the state operating budget faces a ten to twelve billion dollar deficit over the next four years which will impact agencies, services, and projects.
On The Impact, Paul Queary, editor of The Washington Observer newsletter, and Laurel Demkovich, state government reporter for The Washington State Standard, offered their perspectives about how the next Legislative Session might shape up in light of the election.
Demkovich says revenue challenges are the top story:
- Link 2:00-2:11 “I think the biggest thing, the biggest question that lawmakers are going to have to face is what to do about a pretty big hole in their budget for the next four years.”
- Link 2:35 – 2:45 “Trying to figure out whether it’s new taxes or cutting programs or other things from the budget that it’s kind of going to be a question on day one and maybe day 105 as well.”
Queary anticipates new tax legislation next year:
- Link Queary 3:14 – 3:25 “I look at that at the Democrats in the Senate and House caucuses and I don’t see a lot of votes to cut the budget. And I see a lot of votes, you know, for new taxes and new revenue.”
On AG-Elect Nick Brown’s Executive Team:
- Link Laurel: 10;47-11;00 “I don’t know exactly what his thinking was on some of those. I think with the ecology pick, it’s possible that maybe he’s anticipating some environmental suits that the state will have to take on.”
On Insurance Commissioner-Elect Patty Kuderer: