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As the legislative session moves into its latter half, activity in Washington’s state capitol centers on budget negotiations, policy debates, and stark fiscal realities. The state faces a troubling $845 million revenue shortfall over the next four years, alongside an estimated $15 billion operating budget gap, prompting intense bipartisan negotiations.
Fiscal Pressures Intensify
Tuesday’s updated projections from the Office of Financial Management anticipate declining revenues:
- $71 billion for the 2025-27 biennium, approximately $480 million below earlier forecasts.
- $76 billion expected for 2027-29, nearly $420 million below prior projections.
Notably, despite these shortfalls, anticipated tax collections still represent a 7.6% growth from previous budget cycles—a fact highlighting the scale of Washington’s structural spending challenges.
Political Contrasts and Strategic Choices
Governor Bob Ferguson has proposed aggressive budget reductions totaling $4 billion over four years, including monthly furloughs for state employees, directly impacting those who recently secured collective-bargaining agreements promising 5% wage increases. Senate Republicans have released their “$ave Washington” proposal, prioritizing fiscal restraint while increasing K-12 funding by $2 billion and allocating $100 million for new law enforcement hiring—without introducing new taxes.
Republican Senator Chris Gildon emphasized restraint but reassured, “Even with today’s forecast, the state expects $4.5 billion more over the next two years, so the sky is not falling.” Yet, substantial uncertainty looms over potential federal cuts that could dramatically reshape the state’s budget calculus.
Federal Cuts Could Push State into Special Session
Potential federal Medicaid cuts threaten profound impacts on nearly 20% of Washington residents enrolled in Apple Health. A proposed one-third reduction in Medicaid could force more than 600,000 residents to lose health coverage—including 210,000 children, 61,000 rural residents, and one in five seniors reliant on nursing home care. Speaker Laurie Jinkins (D-Tacoma) warns such cuts would plunge Washington into “completely uncharted territory,” possibly requiring a special legislative session.
Top Tracked Bills
🔋 Alive Bills
🏡 Housing and Tenant Protections
HB 1217 – Rent Stabilization
👎 Chamber Opposes
This measure caps annual rent and fee increases at 7%, strengthens landlord notification requirements, and establishes a resource center to assist landlords with compliance. It continues to advance.
💼 Labor and Employment
SB 5041 – Unemployment Benefits for Striking Workers:
👎 Chamber Opposes
Passed by the Senate, this bill would extend unemployment benefits to workers involved in strikes or lockouts and is currently under further committee consideration.
HB 1213 – Expanded Paid Family and Medical Leave:
👎 Chamber Opposes
Eliminates small business exemptions from Washington’s existing Paid Family and Medical Leave program and expands the program. The bill remains under active discussion in committee.
🌲 Environment
SB 5284 – Extended Producer Responsibility for Recycling:
👎 Chamber Opposes
This legislation places responsibility for packaging and paper product life cycles on producers and continues to move through the legislative process.
🪫 Dead Bills
Labor Market Proposals
HB 1181 & SB 5578 – Minimum Wage Increases & Mandated Paid Time Off:
👎 Chamber Opposes
Both proposals would have raised the minimum wage and mandated paid time off across businesses of all sizes. Neither advanced past committee.
Other Proposals
HB 1155 – Ban on Non-Compete Agreements:
👎 Chamber Opposes
Would have prohibited non-compete clauses in employment contracts; the bill did not progress.
SB 5387 – Corporate Practice of Medicine:
👎 Chamber Opposes
Sought to regulate healthcare management practices but failed to advance following industry opposition.
🔭 Session Outlook
The regular session is scheduled to conclude on April 27. Further developments are likely as negotiations continue and as lawmakers respond to federal fiscal developments and state-level budget constraints. Some stalled proposals may re-emerge in future sessions, depending on evolving policy and economic conditions. Stay tuned and informed by joining our Government Action e-mail list.
