Dear friends and neighbors,
Happy April, from April!
The days are getting longer, spring is in the air, and the state legislature is deep in budget negotiations that will shape the next two years for Washington. I want to give you a quick update on one of the big topics making headlines—property taxes—and how we’re working to make sure your tax dollars go further in supporting the services you rely on every day.
I’ll also walk you through the key differences between the House and Senate budget proposals so you can see what’s on the table—and what’s at stake.
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The Truth About Property Taxes
Let’s be real—passing a budget is about responding to real community needs: more police officers, faster emergency response times, mental health support, better roads, more housing options, and safe sidewalks for our kids. Every year, city leaders do their best to meet those needs, but they’re working with one hand tied behind their backs.
Right now, local governments can’t increase total property tax revenue by more than 1% a year—even if costs for things like firefighter salaries or park maintenance increase more than that. This 1% cap was set over 20 years ago and doesn’t reflect how inflation or population growth actually work.
So what’s on the table? The Legislature is considering giving local governments the option to raise that cap to 3%—not automatically, not statewide, and not without local oversight. This would simply allow cities to choose whether they need to adjust their revenue slightly to keep up with rising costs.
📉 What would it cost the average homeowner? About $30 a year. The cities of Duvall and Des Moines put it best: this is like giving local governments a COLA (cost-of-living adjustment) so they can keep up with inflation—not a blank check. It’s $1 becoming $1.03, not $3.
📍Real example: A simplified model shows that with the current 1% cap, property tax on a $350,000 home goes from $875 to $1,036 over three years. With a 3% cap, it would reach $1,099. That’s a difference of about $30 per year. And that extra $30? It helps fund your library, fix your roads, and keep your community safe.
👉 Read more from the mayors in their op-ed
Raising the local revenue cap slightly helps ensure your community stays safe and strong—without drastic increases to your tax bill. It’s how we keep up with inflation, pay teachers, and maintain public safety staffing without cutting corners.
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Key Differences Between House and Senate 2025 Budget Proposals
Both the House and Senate have proposed their versions of the 2025-2027 operating budget, each reflecting our shared commitment to protecting essential services while addressing the state’s financial challenges. However, there are notable differences between the two proposals that will shape the final budget agreement.
Shared Commitments:
Both the House and Senate budgets prioritize maintaining funding for key areas, including:
- Education: Continued investments in K-12 and higher education, including special education funding.
- Healthcare: Ensuring access to medical services, mental health support, and public health initiatives.
- Housing and Food Assistance: Addressing homelessness, shelter capacity, and food insecurity.
- Transportation and Infrastructure: Funding for roads, transit, and environmental sustainability projects.
- Public Safety: Investments in law enforcement training, emergency response, and community-based crime prevention programs.
The Differences:
While the overarching priorities remain aligned, the House and Senate proposals differ in their funding levels and policy approaches across several areas:
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Area |
House Proposal |
Senate Proposal |
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Total Budget |
$77.8 billion – Maintains existing services and introduces targeted investments while balancing long-term fiscal responsibility. |
$78.5 billion – Slightly larger budget with additional spending on certain areas but also includes cost-saving measures such as furloughs. |
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K-12 Education |
Allocates $1.1 billion for special education and local effort assistance to help school districts maintain quality education. |
Allocates $1 billion for special education and $175 million for school materials, supplies, and operational costs. |
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Childcare & Early Learning |
Delays expansions of the Fair Start for Kids Act, saving $734 million over four years while preserving core services. |
Similar delays, though exact funding levels differ slightly, with some focus on alternative early learning initiatives. |
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Housing & Food Assistance |
Provides $117 million to local governments for shelter beds and $93 million to maintain emergency food assistance programs. |
Allocates $93 million for food assistance and $78 million for local housing programs, with a focus on rapid rehousing efforts. |
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State Employee Compensation |
Maintains current salaries and benefits for state employees, avoiding furloughs or pay cuts. |
Implements furloughs for certain state employees to reduce costs, aiming to generate savings while minimizing service disruptions. |
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Revenue Generation |
Proposes a Financial Intangible Assets Tax on high-value financial holdings and adjusts property tax growth limits. |
Suggests a financial intangibles tax on individuals with over $50 million in assets and introduces a payroll tax on high earners. |
Budget Votes and Conferencing: Steps to Sine Die
Throughout April, intensive work occurs to finalize the state’s operating, capital, and transportation budget. For more information, check out the Citizen’s Guide to the Washington State Budget!
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As we continue through the final weeks of session, I remain committed to a fair budget that reflects our values—from keeping our neighborhoods safe and our schools strong, to ensuring access to housing, healthcare, and opportunity for all. These are big conversations, but they all come back to the basics: how we take care of each other as a community.
As always, I’m here to listen and answer your questions. Please don’t hesitate to reach out.
Warmly,
Rep. April Berg