Closing the Budget Gap and Building for the Future

Washington is facing a roughly $15 billion budget shortfall, with added funding pressures in our schools, housing, and public safety systems. Over the past decade, nearly a million new residents have made Washington their home, increasing demand for services across the board.

In recent biennia, we received very optimistic revenue projections from the Revenue Forecast Council—suggesting our state’s tax system would generate more money than we were spending. This allowed us to expand college scholarships, better care for our environment, build more affordable housing, and provide health insurance to more people.

The last few revenue forecasts were a departure from the positive ones from the previous 6 years, and our revenues are projected to be lower than our expenditures.  We are required to pass a budget that balances over the next 4 years, so have our work cut out for us. We’ve already identified significant cuts and savings within the budget. But we cannot responsibly cut our way out of this shortfall without severely impacting public education, health care, and the essential services families and communities rely on

Washington’s regressive tax structure places a disproportionate burden on working families, while the wealthiest residents and largest corporations don’t pay their fair share. This imbalance has left too many communities under-resourced and too many vital services vulnerable in tough economic times. That’s why we’re pursuing a balanced approach that includes cost-cutting, reforms, and new progressive revenue that asks those at the top to contribute more fairly.

To that end, the House has introduced several proposals to modernize and rebalance our tax code:

• A Financial Intangible Assets Tax, which would apply to extremely high-value holdings like stocks and bonds—affecting about 4,300 of the wealthiest Washingtonians, while exempting pensions, retirement accounts, and the first $50 million in value.

• Updates to property tax growth limits, allowing for modest increases tied to inflation and population growth—ensuring local governments and schools can keep up with real-world costs without overburdening homeowners.

• A surcharge on Washington’s largest corporations and financial institutions to help fund education, health care, and public safety—while leaving small businesses unaffected.

• Closure of outdated or ineffective tax loopholes and preferences that no longer serve their intended purpose.

These proposals aim to create long-term fiscal stability. By asking those who have benefitted most from our economy to contribute more fairly, we can protect essential services and invest in the future of every Washingtonian.

Not all of these ideas will pass, but we’ve made an effort to present a range of thoughtful, balanced options. We will consider each proposal carefully and amend them as needed to reach a responsible agreement.

Young Legislative Leadership!

Pictured: our page, Tanner Ferguson 

Pictured: our page, Wendy Landis 

Pictured: our page, Sahana Ratton

It is incredibly valuable to have young leaders from our communities, like Tanner, Wendy, and Sahana, represented in the page program. Their voices enrich our understanding and provide a fresh perspective on the issues we face, ensuring that our future leaders are as diverse and resilient as the communities they come from.

If you’re a young leader interested in participating in the legislative page program or have any questions, please click here! We are here to support the next generation of changemakers.