Saturday

04-19-2025 Vol 1935

Washington Legislators Race Against Time to Solve Budget Shortfall and Other Key Issues

As Washington’s 147 legislators commenced the 2025 session three months ago, addressing the growing shortfall in the state’s next operating budget was at the top of their agenda.

However, with just 13 days left, or roughly 300 hours, until the regular session’s conclusion, solutions remain elusive.

Recent economic indicators suggest that the situation is worsening, adding urgency to the task ahead.

The budget shortfall isn’t the only unresolved issue on the legislative agenda.

Major differences on a proposed rent cap bill need reconciling, a new transportation budget is yet to be finalized, and lawmakers must determine the size of an impending gas tax hike.

Additionally, public school students are advocating for their own bill of rights, similar to the one granted to parents last year, though its future is uncertain.

The countdown has begun.

Set the clock for 11:59:59 on April 27, the last possible moment of the regular session.

The last time lawmakers extended their session was in 2017, which resulted in three special sessions to reach a budget agreement.

In terms of fiscal policy, Democrats in both the House and Senate have proposed spending plans for the upcoming two-year budget cycle beginning July 1.

Using their legislative majorities, they passed these plans despite robust opposition from Republicans.

GOP lawmakers have expressed strong dissent as the Democratic proposals center around historically large tax increases aimed at addressing a projected shortfall of $16 billion over the next four fiscal years.

To date, no tax proposals have been subjected to a vote in either chamber.

The process was further complicated when Democratic Gov. Bob Ferguson disrupted the plans by forbidding reliance on billions from a new, untested tax levied on the assets of the ultra-wealthy.

Consequently, the status of other significant revenue-raising proposals remains ambiguous.

These plans include a payroll tax on large employers, increased business taxes targeting corporate and banking giants, and lifting the annual cap on property tax collections for cities, counties, and the state.

Each of these has faced substantial opposition.

Democratic lawmakers and Gov. Ferguson are in agreement that any viable solution must involve tax increases.

Discussions have now shifted to identifying which specific taxes will be included.

Potential resolutions may surface later this week.

Meanwhile, budget negotiators must make critical decisions about necessary spending cuts.

These decisions are expected to be challenging.

For example, Ferguson and Senate Democrats are exploring the option of furloughing state employees, despite pushback from hundreds of dissenting workers last week.

Additionally, there are disparities between the House and Senate regarding funding for public schools; notably, the Senate proposes approximately $800 million more for special education compared to the House.

Enhancing funding for public schools was the focal point of a recent rally attended by students, parents, and educators.

Until the discussion around taxes is resolved, Democrats will find it difficult to finalize decisions on spending cuts.

Transportation concerns are also on the legislative docket, as lawmakers are tasked with adopting a new two-year budget for the state’s transportation system before the session ends.

This process is proving to be complicated.

The Senate’s version of the proposal features approximately $1 billion more in expenditures than the House’s proposal.

The Senate plan also reallocates future spending obligations tied to alleviating barriers to fish passage to the capital budget, while the House favors allocating more funds specifically for addressing those culverts.

An additional concern is that current incoming revenue, mainly sourced from gas taxes and vehicle fees, falls short of funding previously promised projects.

Consequently, both the House and Senate devised packages of new and higher fees and proposed an increase to the state’s already substantial gas tax.

Disagreement persists over the proposed gas tax increase, with the Senate planning a 6-cent hike on the existing 49.4-cent tax, alongside annual 2% increases to account for inflation.

Conversely, the House proposes a 9-cent increase with provisions to adjust it for inflation thereafter.

Additionally, the Senate has approved a more extensive list of new and elevated fees compared to its House counterpart.

Governor Ferguson has yet to publicly declare his position on these issues, including the potential gas tax increase.

In the realm of housing policy, House Democrats aim for a statewide cap on residential rent increases, marking it as a major policy priority.

They held optimistic expectations that the Senate, which blocked the proposal the previous year, had shifted enough to the left to now support it.

Twenty-nine of the Senate’s 30 Democratic members voted to pass House Bill 1217, albeit after substantial amendments that raised the rent increase limit to 10% plus inflation, a change from the 7% cap initially proposed by the House.

The Senate version also exempts single-family homes and sets an expiration date for the law in 15 years.

A conference committee made up of four Democrats and two Republicans will likely be established to craft a version that can garner approval from the majority in both chambers.

Republicans, however, remain steadfast in their opposition.

In the education sector, tensions have risen among Democratic lawmakers since they enacted the parental “bill of rights” initiative last session.

This session, they are looking to amend the language of that 2024 law in hopes of clarifying its provisions and aligning them with existing statutes.

Senate Bill 5181 is the legislative vehicle for these proposed amendments and recently reached the House floor.

Critics, including Republicans and proponents of Initiative 2081, argue that it threatens to rollback the rights established for parents.

In parallel, House Democrats have also introduced House Bill 1296, which they refer to as a “bill of rights” for students.

However, opponents contend that it seeks to undermine the authority of school districts and negatively impact the original initiative.

At one point, both bills were united in their pursuit; now, they have diverged.

Both pieces of legislation could theoretically reach the governor’s desk, but it remains uncertain if they will proceed together or independently.

As with many issues during this session, Governor Ferguson has not yet publicly expressed his viewpoint.

image source from:https://myedmondsnews.com/2025/04/long-to-do-list-confronts-washington-lawmakers-as-session-nears-its-end/

Benjamin Clarke