Washington state legislature approves $77 billion budget amid tax debates

OLYMPIA, Wash. — In a race against the clock, both chambers of the Washington state legislature approved a $77 billion budget just hours before the legislative session ended. The budget, which aims to address a $16 billion shortfall, includes $8.7 billion in new taxes, a decision that sparked significant debate in Olympia.

As part of the budget, Gov. Bob Ferguson expressed his support for maintaining the state's rainy day reserve fund, citing potential federal budget cuts.

"The federal government, the Trump administration, is engaging in all kinds of cuts to our budget, potentially, so I want to make sure we have a reserve fund to make sure we can withstand the chaos coming from Donald Trump," Ferguson said.

The budget also includes a $7.5 billion capital improvement plan, funding construction and infrastructure projects across the state. This plan marks an investment in affordable housing, public school construction, and the protection of natural resources. Ferguson highlighted the significance of the investment, calling it the largest in state history for the Housing Trust Fund.

Representative Joe Fitzgibbon, the House Majority Leader, acknowledged the challenges faced during the session.

"There’s been a lot of hard choices this session, and I think people are definitely feeling ready to go home to their districts and talk to their constituents," Fitzgibbon said. He added, "It’s been a difficult legislative session because of the size of our budget challenge. I feel good that we are ending on time and that we have a balanced and responsible budget, but it hasn’t been easy."

However, some Republican lawmakers, including Representative Chris Corry, criticized the new taxes.

"There’s new taxes on property, new gas taxes, new taxes on real estate, new taxes on products that people buy across the state," Corry said. "It’s more, more, and the question we keep asking is are we getting more, we’re actually getting a lot less in this state, we believe."

The transportation funding plan, passed with bipartisan support, includes a $15.5 billion allocation for highway projects, road repairs, and the state ferry system. This plan introduces a six-cent increase in the state's gas tax, effective in July.

Ferguson, while stopping short of endorsing the operating budget, stated that his "key priorities" were adopted. He plans to review the budget "line by line" in the coming weeks. Lawmakers from both parties acknowledged the session's difficulties but emphasized the importance of continued collaboration.

"You see the best policies when we’re actually working together and it becomes less about us versus them but how we can work to fix one Washington together," Corry said.