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May 7, 2025

Dear Friends and Neighbors,

The 2025 legislative session ended on Sunday, April 27, with the state’s three budgets passing. This was a difficult session for many reasons, including the budget deficit created by overspending by state government. However, we did accomplish a lot, and many good bills will become law. Unfortunately, not every policy that reaches the governor’s desk will be good for Washington.

Columbia River Gorge Commission Receives Funding

The final state operating budget passed by the Legislature included numerous cutbacks to many areas. However, despite being completely defunded in the first budget proposal, the Columbia River Gorge Commission did receive about 75% of its original funding in the final version. Click here to read more.

I worked closely with the governor on this issue to ensure it got funded. This was a really tough budget year, and there were cuts in all our major services across the board. So, the fact that we were able to get 75% of the original amount included in the final budget is a major victory.

Update on My Legislation

I introduced several bills this session, four of which have made it to the governor’s desk. He has already signed three, and even without his signature on the fourth one, all of them will become law later this year. Here’s a quick description of each bill.

House Bill 1602 will 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 promotes 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 eliminates special liquor permits and clarifies that all persons selling and serving alcohol for on-premises consumption at a licensed facility need to obtain an alcohol server permit. Click here for more.

House Bill 1731 will 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.

Legislature Passes New Budgets

On the final day of session, we voted on the state’s three budgets: operating, transportation, and capital. The transportation and capital budgets represented a lot of bipartisan work. However, Republicans were left out of the negotiations for the operating budget. Here’s a recap of each.

Capital Budget Wins for the 17th District

Unlike the operating budget, the capital budget is primarily funded through bond sales, not general fund state (GFS) revenue. It focuses on long-term physical investments such as public schools, water systems, and community facilities.

The capital budget has a set amount of funding, meaning this money does not affect the deficit in the operating budget or require new taxes. The final capital budget spends $7.6 billion, with more than $15.4 million coming to the 17th District. I voted in favor of this bill. Here are a few highlights.

• $3 million for the White Salmon River Conservation Lands acquisition.
• $2 million for Trout Lake recreation program.
• $1.8 million for the Washougal Community Library building project.
• $1.5 million for the White Salmon Valley pool.
• $1.03 million for the Hemlock Commons at Play Frontier
• $1 million for Skyline Health’s critical hospital infrastructure.
• $940,000 for Western Skamania County public safety complex.
• $618,000 for Klickitat County Courthouse rehabilitation.
• $155,000 for safety equipment for Camas/Washougal firefighters.

As a member of the House Capital Budget Committee, I know the amount of work that went into getting this budget across the finish line. It was truly a bipartisan effort to meet as many needs as possible throughout the state. I’m grateful to get this funding for our district. It means so much to our residents and communities.

For a complete list of our local projects included in the final budget, click here and select “Proposed Compromise” in the “version” menu and the 17th Legislative District in the “district” menu. Then, hit the “View Report” button.

Inflated Operating Budget and Increased Taxes

Now to the operating budget. The majority party originally proposed increasing taxes over the next four years by about $20 billion. Ultimately, they passed a record-setting $77.9 billion 2025-27 operating budget, which included an 8% increase in spending and $9.5 billion in tax increases. I voted against this budget because we should not increase spending when revenues have slowed. While year-over-year tax revenue is still growing, it’s not at the same level as it was over the last five years. We need to be responsible and spend within our means. Instead, this budget passed by the majority party overspends and passes off the additional cost to struggling taxpayers.

These are some of the tax bills that passed this session to help fund the budget, which are expected to disproportionately affect already struggling families:

• House Bill 2049: Allows local property taxes to increase and creates McCleary 2.0.
• House Bill 2077: Tesla tax. Excise taxes on the sale or banking of zero-emission credits held by Tesla.
• House Bill 2081: Increases the B&O tax on most businesses, including manufacturers, food producers, financial institutions, and retailers, which will be passed to consumers.
• Senate Bill 5390: Increases the Discover Pass fee by 50%.
• Senate Bill 5583: Increases hunting and fishing license fees.
• Senate Bill 5813: Increases capital gains and estate taxes.
• Senate Bill 5814: Increases the sales tax on various services and goods, including sales tax on cigarettes to more than $5 per pack and a 95% tax on Zyn and other tobacco products.

State government often asks us to tighten our belts, but this budget and the new taxes to fund it, completely toss that belt to the side. It’s time for state government to live within its means and stop asking struggling Washingtonians to pay more. The media agrees.

• Editorial: Ruling Democrats, your tax hikes come at a cost to all WA residents – The Seattle Times
• Editorial: Gov. Ferguson, scrub the budget carefully – The Seattle Times
• Editorial: Gov. Ferguson, stand up to legislative overreach – The Seattle Times
• Editorial: Ferguson weighs risky approach to bottom line – The Columbian

Transportation Budget Comes with Additional Taxes

Like the operating budget, the transportation budget also includes new taxes and fees. This budget will spend $15.5 billion, including $1 billion in Climate Commitment Act funding and billions in new revenue. It does not include the House proposal to have $1 billion in reserves over six years. The largest investments include: WSDOT ($11.8 billion); Washington State Ferries ($1.7 billion); Washington State Patrol ($758 million); public transportation ($753 million); and the Department of Licensing ($446 million).

This budget does some good things, but unfortunately, it relies on $3.2 billion in new taxes and fees, including a $.06 per mile gas tax increase. There are two additional 3-cent increases in diesel fuel taxes, plus an inflation increase every year. I voted against this budget and the tax increases to fund it.

That being said, the budget does include $31 million for 2025-27 for the 17th District, with $28.8 million going toward the I-5/179th Interchange. The Hood River to White Salmon Bridge was also funded in this budget with $115 million for this biennium. This is a big win for our district. Even though the bridge is in the 15th District, it also plays a huge role for commerce and transportation in the 17th District.

Perhaps the biggest disappointment is that this budget does not include funding for the Slough Bridge. While I’m grateful the Hood River bridge funding is included, the Slough Bridge must be addressed in the next budget cycle. It is vital for businesses and residents in our communities, but it has become increasingly more dangerous and can no longer be ignored. I will continue fighting for the necessary funding in the next budget.

Thank You, and Keep Reaching Out

Thank you for your trust and for allowing me to serve you. I’m humbled and honored to be your voice in the Legislature and will continue doing everything I can to represent you and our great district. I want you to know my door is truly always open, and I hope you will reach out to me. It’s an honor to serve you.

Sincerely,

Kevin Waters