“Certainly, we are going to have to do reductions, and that’s always been the primary first place that we’re looking to is let’s do reductions that are prudent, but that are not—that’s where we’re trying to minimize harm to Washingtonians.”
“If we are not able to maintain competitive staffing, the state is not able to provide the services that no private sector agency is stepping up and volunteering to provide.”
“We want to make sure that we are aligned with the voters of this state in terms of what we do, and those are the four things that are going to guide us primarily in what we decide to do.”
- Laurie Jinkins (Speaker of the House, D-Tacoma)
“We work really hard to make sure we maintain services, especially for vulnerable individuals in our state, but we just do, I think, a very good job of living within our means—no taxes.”
“We have this system in our state we have, for a long time, where we give pay raises by percentages, but what that always does is drive us apart, not pull us together.”
“Think about what our state would look like without Microsoft here or Amazon here, or even go back long enough without Boeing here, because we prevented them from ever deciding Washington is a good place to start up and run.”
- John Braun (Senate Minority Leader, R-Centralia)
As Washington’s legislative session approaches its conclusion – finalizing legislation and negotiating a new state budget – lawmakers are working to balance a multi-billion-dollar budget deficit while advancing key priorities such as housing, education, and public safety.
House Democrats have expressed satisfaction with their legislative progress, highlighting the passage of a rent stabilization bill aimed at capping rent increases at 7% annually. The bill passed the House last year but failed in the Senate. This year, Senate leaders have indicated a willingness to consider it, though potential amendments could change its final form.
In addition to housing policy, Democrats have focused on public safety by passing measures to fund law enforcement and other public safety workers. They have also addressed workforce challenges by moving forward with initiatives aimed at reducing teacher shortages and expanding the healthcare workforce through compacts and training programs.
A major point of contention in budget negotiations is how to address the state’s financial shortfall, now estimated at up to $15 billion. Democrats are seeking a balanced approach that includes both reductions and new revenue sources. They aim to minimize harm to essential services while carefully selecting revenue measures that they say are legally sound and likely to gain public support.
Senate Democrats and House Democrats both released tax packages late this week which included a “financial intangibles” tax on wealthy Washingtonians, changing the growth cap on property taxes, a one-half-cent sales tax decrease, and other major tax adds and changes.
Republicans, meanwhile, remain firmly opposed to new taxes. They argue that the state should focus on living within its means by making prudent spending cuts rather than increasing the tax burden on residents. In their alternative budget proposal, Republicans prioritize maintaining services for vulnerable populations without introducing new taxes.
The situation is further complicated by a revised revenue forecast that anticipates a reduction of $845 million in anticipated receipts.
The potential impact of federal policy changes has also raised concerns among lawmakers. Proposed cuts to Medicaid and other federal programs could significantly impact the state’s budget, prompting discussions about the possibility of a special legislative session if federal actions create substantial financial challenges.
With the end of the legislative session rapidly approaching, the parties remain divided on how to balance the budget and fund essential services. With Democrats possessing healthy majorities in both House and Senate, negotiating budgetary differences between the House and Senate will be key to finding final agreement on a 2025-27 state budget.