After a grueling 105-day session, the Washington State Legislature adjourned Sunday evening for what lawmakers hope is the final time this year.
All eyes now turn to the governor to see which budget items might stick – and whether he will veto key provisions and call lawmakers back to Olympia for a special session.
In the days leading up to adjournment, legislators approved a new budget that features new taxes and fee increases. They also passed hotly debated policy changes, including a bill to limit rent increases in the state, changes to the parents’ rights law, and legislation allowing striking workers to access unemployment benefits.
In a press conference following adjournment, Democratic leaders characterized this year's session as one of the most difficult in recent memory.
Gov. Bob Ferguson opted to issue a lengthy statement in lieu of speaking with reporters following adjournment.
In his statement, Ferguson said he looks forward to “carefully reviewing” the budget over the next few weeks and will share his thoughts with the public once his review is complete.
“I intend to carefully review all revenue increases,” his statement said.
Republicans remained fiercely opposed to many bills that passed in the final days – especially tax changes they worry would increase costs across Washington, particularly in health care.
GOP leaders have also criticized Democrats for what they see as a lack of transparency in the final steps of the budget-writing process. Democratic budget writers spent weeks negotiating the final spending plan behind closed doors, and several pieces of legislation outlining various tax changes and funding cuts sped through the Legislature in recent days.
“I honestly believe it brings shame on the Legislature for doing it this way and it brings shame on the people of Washington state – it should not happen this way,” said Sen. Chris Gildon (R-Puyallup) as the final budget deal was announced over the weekend.
Ahead of the budget’s final passage, Sen. June Robinson (D-Everett), chair of the Senate Ways and Means Committee, said she sees input from Republicans reflected in the budget, and noted the difficulty of the cuts included in the final version.
“This budget is a path – I will never say it’s perfect – but it is a path that has taken into consideration many, many voices and concerns,” Robinson said. Her voice trembled with emotion.
This year’s legislative session was uniquely difficult. Lawmakers were tasked with closing a multibillion dollar budget gap, as costs of state services have ballooned and tax revenue comes in slower than previously expected.
The Democratic majority also pursued policy changes that drew procedural delays and hours of debate from Republicans. Democrats were also met with pushback from their own party’s new governor who bucked against their proposed tax increases.
Lawmakers on both sides of the aisle also endured personal tragedies in recent months – including the death of Sen. Bill Ramos, (D-Issaquah), who died with just about a week left in the session. Senators from both parties honored Ramos on their chamber’s floor on Sunday afternoon.
On Saturday, as lawmakers prepared to adjourn, Sen. Chris Gildon (R-Puyallup) learned his wife was unresponsive. The Republican Caucus posted to Facebook that evening that she had died.
Talking with the press on Sunday, Lt. Gov. Denny Heck (D) – who presides over the Senate chamber – acknowledged the hardships.
“This place is full of sadness,” he said, adding that this session had been the most difficult one he’s experienced in 51 years of working in and around the Capitol.
Still, lawmakers shared hugs and cheers after adjourning on schedule Sunday evening, with celebrations tinged with a sense of relief that the session was over and some daylight to spare.
New state budgets come with slate of new taxes and cuts across the board
The new state budget would amount to roughly $77.8 billion over the next two years, closing a multibillion dollar gap with a combination of cuts and new tax revenue.
Unlike previous proposals floated in the Legislature, the final deal does not drain the state’s “rainy day” fund, nor does it include furloughs for state workers. Notably, the final budget does not include a new wealth tax, something many Democrats had hoped to create this year – that idea was quashed by Ferguson earlier this session. The Senate approved a smaller version of the wealth tax, but it did not move forward in time to be considered in the House.
The budget also maps out billions in cuts over the next several years – roughly $3 billion over the next biennium. The deepest cuts will hit child care, behavioral health, and higher education. There are also cuts in health and reductions in administrative costs across state agencies.
A flurry of changes to the state’s tax code sped through in the final week of this year’s session, after a tense push-and-pull over taxes between Democrats in the Legislature and the governor. The various changes could result in around $4.3 billion of added revenue over the next two years. Among those are higher taxes on businesses, an expansion of the state’s capital gains tax, and hikes on several different fees. Lawmakers also removed a series of sales tax exemptions.
The transportation budget, which is separate from the state’s main operating budget, also includes a mix of tax and fee increases, including a six cent boost to the state gas tax.
Amid the budgeting shuffle, lawmakers found ways to increase spending on certain priorities in K-12 education and public safety, like a major boost in special education funding and $100 million for grants to help city and county governments hire more cops.
Rent caps, parent rights among major bills that passed this year
On the final day of the session, a bill to limit annual rent caps passed despite divisions among Democrats throughout the session about what version of the policy should become law.
The bill ultimately passed the Legislature with opposition from a handful of Democrats and Republicans, capping annual rent hikes at 7% plus inflation or 10% – whichever is lower. The legislation also exempts new construction from the caps for 12 years, and the caps expire by 2040.
The Legislature also revised the state’s parents rights law and created new anti-discrimination protections for students based on their gender expression or identity. A bill granting striking workers access to unemployment benefits for up to six weeks also passed, as well as a bill creating a new permit requirement to purchase firearms.
The new firearm permit legislation is likely to face immediate court challenges, but the state’s attorney general Nick Brown praised the bill’s passage on social media shortly after lawmakers sent it to the governor.
Meanwhile, the fate of bills on the governor’s wishlist was mixed. Lawmakers went along with new funding for law enforcement grants and a bill restricting outside militias from entering the state without authorization. Both were priorities Ferguson named in his inaugural address.
But Ferguson’s push for a bill to grant lawmakers more say over the governor’s use of emergency powers and another to provide all K-12 students free school meals fell short this year.
All eyes on Ferguson, feds
In his first months as governor, Ferguson did not publicly weigh in on many proposals coming out of the Legislature. Now that lawmakers are wrapping up in Olympia, the fate of the various measures rests in Ferguson’s hands.
It’s unclear which budget provisions Ferguson may veto. He quashed several previous tax plans, and has repeatedly said he prefers a cuts-first approach to the budget process. He did not reveal anything new about his thinking as lawmakers prepared to adjourn.
“What I’ve emphasized is a balanced approach,” Ferguson told TVW Sunday afternoon. “But of course I’ll be taking a close look to see what stays in the budget and what might need to come out.”
The governor has roughly three weeks to sign bills that passed in the final days of the session. While legislation can become law without his signature, Ferguson has not shied away from using his veto pen already, and could use it to nix certain budget or policy items.
It’s also unclear how federal policies may hit Washington’s bottom line and whether tumult at the federal level will demand that lawmakers return to Olympia. Roughly 28% of the state’s budget comes from federal funding, and tariffs at the federal level could devastate critical parts of the state’s economy that rely on global trade.
