Legislative pundits were wondering whether the 2025 session was going to end on time (April 27th) or if a special session would be needed to finish the budget.  In a flurry of moves, the Democrats in the House and Senate passed billions in new taxes, thus setting up a showdown with Governor Ferguson.

WA State Legislature/TVW Screenshot/Canva
WA State Legislature/TVW Screenshot/Canva
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The first term Governor wasted no time in releasing a statement with regard to the $12.5 billion in new taxes included in the the budget.

Throughout this budget process, I have also insisted that the Legislature take a balanced approach to solving the $16 billion shortfall. That is why I rejected an initial proposal to raise $21 billion in taxes. I then rejected a subsequent $12 billion tax proposal as unsustainable.

Before wiping your brow in relief, Ferguson didn't rule out signing what will appear on his desk.  He also didn't say his approval is a slam dunk.

I appreciate that the Legislature heard my concerns and dramatically reduced the revenue assumed in the final budget. That said, I intend to carefully review all revenue increases.

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The Amount of Taxes Are Stunning

The New York Public Library/Unsplash
The New York Public Library/Unsplash
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With a total price tag of $77.9 billion dollars, the new proposed budget is over 8% higher than the previous budget.  $4 billion in increased spending is included along with the $12.5 billion in new new state and local increases.  Some of the low-lights are as follows:

HB 2049

A property tax increase of $1.6 billion through higher local levies.  A bigger risk with this bill will again create an inequitable funding model for education, potentially setting off another "McCleary" situation around the state.

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SB 5814

This one hikes the sales tax in specific areas that will see prices increase on food, healthcare, prescription drugs and housing.  Take note the $2.6 billion increase will cause.prescription drug and healthcare costs to go up because of our state legislature.

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Canva
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SB 5815

This will add another $5.6 billion burden on taxpayers in the form of an expanded business and occupation (B & O) tax.  The business will pass it on to you...period.

Other Hikes Coming In This Budget

  • Doubles co-pays for childcare assistance
  • Triples the per-bed license fee for nursing homes
  • $100 new fee on marriage licenses
  • 38% increase in hunting and fishing licenses
  • 50% increase in accessing state parks
  • 50% increase in liquor license fees
  • $50 million reduction in dental care for low-income children and adults
  • Lowers payments to hospitals for their patients who are public employees
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The impact on multiple aspects of healthcare is truly staggering and will harm families around the state, especially those that are lower income.  You do have the ability to reach out to the Governor and ask him to veto some, or all, of the tax increases.  The ways to reach his office can be found by clicking here.  There is no guarantee lobbying Governor Ferguson will work, but trying never hurts.

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Gallery Credit: Rik Mikals

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