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Dear Friends and Neighbors,
As we move into spring, we can see a light at the end of the tunnel of this 105-day legislative session. However, there is still much work to be done over the final five weeks, especially when it comes to the state’s three budgets: operating, transportation, and capital.
Before I get into the latest budget news, thank you to everyone who participated in our 17th District virtual town hall last week. I appreciate your input and feedback. If you were unable to join us but still have questions or concerns, please reach out using the contact info at the bottom of this email.
Update on My Legislation
I also want to give you a quick recap of some of the legislation that survived the House of Origin cutoff, both good and bad. I’m happy to report that four of my bills received approval from the House and are now in the Senate for further consideration. Here’s a quick recap.
House Bill 1602 would allow alcohol producers, including breweries, to sub out their kitchen space to individuals or entities better suited for running the food service side. Click here for more.
House Bill 1609 would promote the efficient administration of state education agencies by allowing the Office of the Superintendent of Public Instruction to use a designee on the Board of Natural Resources, allowing the superintendent more time to supervise the administration of school policies and procedures. Click here for more.
House Bill 1698 would clarify that all persons selling and serving alcohol for on-premises consumption at a licensed facility need to obtain an alcohol server permit and eliminate special liquor permits. Click here for more.
House Bill 1731 would allow museums to notify museum item owners that they have unclaimed property in more modern ways such as email, phone, or text. Click here for more.
Good Bills That Advanced
Here are just a few of the other good bills that passed the House and are now in the Senate.
- House Bill 1096 – Authorizes lot splitting—dividing a single property into smaller lots—enabling homeowners to build affordable homes, boosting housing supply.
- House Bill 1414 – Directs the CTE task force to identify employment barriers for 16- and 17-year-old students while proposing better job training, certification, and hiring rules.
- House Bill 1648 – Tackles Washington’s child care crisis by extending qualification timelines for providers.
- House Bill 1108 – Creates a housing cost tax force, uniting industry experts and community voices to pinpoint why homes and rentals are so expensive.
- House Bill 1457 – Requires tamper-resistant electronic monitoring for sexually violent predators on conditional release.
- House Bill 1285 – Requires all high school students, beginning with the class of 2031, to meet state financial education standards to graduate.
- House Bill 1271 – Allows the chief of the Washington State Patrol to mobilize jurisdictions and request resources to prepare for an emergency or disaster, or when an emergency or disaster is predicted to exceed local resource capabilities.
- House Bill 1605 – Requires a longevity bonus be paid to Washington State Patrol employees that achieved 26 or more years of commissioned service before July 1, 2024.
- House Bill 1273 – Extends a pilot program to increase career and technical education dual credit participation and credit attainment by covering certain expenses of secondary and postsecondary schools.
- House Bill 1757 – Extends allowances for existing buildings to be used for residential purposes in commercial and mixed-use zones to existing buildings in residential zones.
Bad Bills Still Alive
These are some of the bad bills that have moved to the Senate.
- House Bill 1217– Imposes rent control, which will discourage investment, slow down new construction, and worsen Washington’s housing crisis, ultimately hurting both housing providers and tenants.
- House Bill 1296– Undermines the Parent’s Rights Initiative passed by the Legislature last year, erodes the trust between parents and schools, jeopardizes federal funding, and dishonors the will of hundreds of thousands who fought for Initiative 2081.
- House Bill 1531 – Requires state and local health officials’ response to public health to abide by the “best available science” and voids any statutes, ordinances, rules, or policies that prohibit the implementation and promotion of such measures.
- House Bill 1163 – Forces law-abiding citizens to purchase a permit to buy a firearm, creating additional barriers to gun ownership, and infringing upon individual freedoms.
- House Bill 1386 – Imposes an additional 11% excise tax on firearms and ammunition, unfairly burdening law-abiding citizens while doing nothing to address the root causes of crime.
- House Bill 1319– Imposes a 1% annual tax on worldwide financial assets over $100 million, driving wealthy residents and their investments out of Washington, all while failing to address the root causes of wealth inequality.
Big Budget Work Remains
Every session, the Legislature’s most important job is to write and enact the state’s three spending budgets – operating, transportation, and capital. Due to a huge budget shortfall, this year’s effort will be more difficult than in the past few years. However, that doesn’t mean the state has a revenue problem; we have a spending problem.
The economy is growing, and so are state tax collections year-over-year. Tax revenue is increasing by $5 billion this biennium (a 7.6% increase over 2023-25), and Tax revenue has grown by $18 billion since 2019 (34%). According to the most recent revenue forecast this week, Washington state economists believe the state will bring in about $71 billion in revenue over the next two years, slightly down from a November projection and already below the most recent two-year budget of $72 billion.
Both figures are higher than last year, but despite that growth, forecasters now estimate the state’s four-year deficit to be between $10 to $15 billion. How can we have increased revenue but a budget shortfall? The answer is irresponsible spending.
Majority party leaders have announced plans to address the multi-billion-dollar deficit with new taxes on jobs, innovation and employers. But instead of economy-killing taxes, House and Senate Republicans are offering legislation to ensure taxpayer dollars are being spent wisely. The state needs to limit spending and avoid new taxes.
I will continue to update you as the budget process unfolds.
Thank You and Keep Reaching Out
Thank you for your support and input, and please continue contacting me. It’s an honor to serve you.
Kevin Waters
