Depending on who you ask, this year’s short 60-day session of the Washington state Legislature was either history-making, troubling, or both.
Lawmakers passed a bill to tax incomes over a million dollars in order to bank billions of dollars for the future. Meanwhile, they struggled to balance the budget in the short term, making painful cuts to child care and education programs while drawing significantly from the state’s rainy day funds to cover costs.
Republicans disputed claims that life in Washington will become “more affordable” while Democrats heralded legislation to address issues like housing, food access, and health care, and sales tax exemptions for diapers, shampoo and over-the-counter medications that were folded into the income tax bill.
Democrats sent numerous measures to the governor in response to Trump administration actions, including legislation to limit inspection of worker records by immigration agents, a ban on law enforcement covering their faces, and bills to protect voter data and vaccine access. Others stalled out at critical deadlines.
Democrats said they feel good about what they accomplished.
“First of all… to protect the people of Washington from a reckless and out-of-control federal government,” said Senate Majority Leader Jamie Pedersen (D-Seattle), adding he was also proud of the bills moved on housing affordability and the adjustments made to the budget. “Those were all good steps forward.”
Pedersen also said the passage of what he titled a “tax on millionaires” was “historic.”
Republicans, of course, feel differently.
“I think they’re going to wonder if passing the income tax really is leading to a precipitous decline in Washington’s prosperity,” said House Minority Leader Drew Stokesbary (R-Auburn).
Stokesbary and his caucus protested to the bitter end the rewrite of the state’s 90-year-old tax structure, arguing that eventually everyone will have to pay the income tax. They also put up a fight over a controversial bill that allows the state to decertify sheriffs who don’t meet professional standards, another bit of legislation that was ultimately passed.
This was Gov. Bob Ferguson’s second legislative session as the state’s top executive, and he said he was beginning to feel more comfortable working with lawmakers.
“I had a chance to have months to prepare my budget, months to prepare my legislative agenda, and months to work with legislators, and I think all of that helped,” Ferguson said. “If you look at that State of the State address, the issues I laid out, virtually every single one of them, the legislature met them.”
The governor said the one bill he had hoped for that fell through was one that would have created a “mosquito fleet,” a passenger-only ferry system for the Puget Sound region. In the final wind down of the session, lawmakers couldn’t come to an agreement on changes.
Spending plans
As the clock ticked Thursday, Ferguson insisted lawmakers eliminate a sales tax on equipment replacements for data centers to make sure the nearly $80 billion dollar operating budget balances and that they avoid a special session.
The remainder of the current two-year budget now also relies on $880 million from the state’s rainy day fund.
But it no longer fills gaps with revenues from the sale of carbon emissions allowances under the Climate Commitment Act, a win for those who want those funds used for environmental causes.
Child care services and education, particularly to the state’s Transitional Kindergarten program, shoulder nearly a third of the reductions in the budget.
Democrats say they had to make tough choices because of inflation, rising legal costs from lawsuits against the state, and cutbacks approved by Congress in H.R.1. The state stepped in to pay for services like long-term care and food assistance for low income people and non-citizens who are in the country legally.
“There will be lots of people who will be disappointed by this budget," said Sen. June Robinson (D-Everett), who chairs the Senate Budget Writing Committee. “I think we did the best we could with the resources we have available.”
The operating budget didn’t get a single Republican vote. A few Democrats in the House and Senate also dissented.
One of the Republican’s lead budget writers, Sen. Chris Gildon (R-Puyallup), complained of continued spending increases and the future reliance on revenue from an income tax that isn’t guaranteed.
“I believe that it is a $80 billion house of cards that’s built on a very shaky foundation,” he said.
The approvals of adjustments to the $16.6 billion transportation budget and $889 million capital budget were broadly bipartisan.
Looking into next year, House Speaker Laurie Jinkins (D-Tacoma) said she expects there will be more federal action to respond to.
“The thing that will have the biggest effect on next year’s budget will actually be what other harm the federal administration decides it’s going to do to Washingtonians,” Jinkins said. “We see the tariffs having huge impacts on jobs in Washington state and that’s something we’ll really have to look at a package to help Washingtonians next year.”
Ferguson agreed that there will certainly be challenges to come, as the state looks at a $878 million forecasted budget deficit for the 2028 fiscal year and the implementation of the income tax that passed in 2029.
“I’m clear eyed, we’re not out of the woods on that by any stretch of the imagination, full stop,” the governor said. “But I think it’s also fair to look at the steps we’ve taken to try to make sure we’re budgeting in a more responsible way.”
