Dear Neighbors, 

The 2023-2025 Washington State budget tells the story of our family, community, and state values, priorities, and vision for the future. In recent years, we have seen historic revenue growth and unprecedented federal investments that allowed us to make transformative changes. These investments have strengthened our communities, expanded opportunities, and built a foundation for long-term economic prosperity. However, as federal relief winds down, we must take responsible action to ensure we can continue funding the essential services that Washingtonians rely on. 

Washington State is confronting a projected budget deficit of $4.35 billion for the 2025-27 biennium and $6.7 billion for 2027-29. This challenge arises as state spending outpaces tax collections, a trend recognized in the supplemental budget approved last session. Governor Inslee outlined his 2025 budget before leaving office, while incoming Governor Bob Ferguson has shared his budget priorities—both highlighting the looming deficit. 

Factors contributing to the deficit include lower-than-expected tax receipts due to slowing consumer spending, reduced home sales, and underperformance of the capital gains tax. With increasing demand for social services, health care, and education—exacerbated by new laws expanding program eligibility—lawmakers face a critical multi-billion-dollar challenge ahead. Governor Ferguson has provided additional information as he settles into his commitment to addressing the state deficit. In a February 12, 2025, article in the Washington State Standard, it was noted that “Ferguson has repeatedly said—including in the memo—that his across-the-board cuts are intended to be on top of the $2 billion in savings former Gov. Jay Inslee wrote into his last budget proposal.”  

As your representative and a member of the House Appropriations Committee, we have much work ahead in collaboration with our Senate Ways & Means Committee and the Executive Branch under Governor Ferguson. I am committed to working with our local governments, schools, and nonprofits as we make decisions that will impact our families, students, elders, and communities. I remain dedicated to building a budget that reflects the 40th District’s commitment to working together, because now more than ever, we must rely on our shared values as a community. We must continue to take care of our neighbors and volunteer to support our schools, emergency response efforts, elders, food banks, and safety programs. 

I am still a small-town girl who governs with this thought in mind: we are all responsible for protecting our most vulnerable, investing in our future, and ensuring sustainable growth for Washington. I look forward to hearing your thoughts and working together to strengthen our state.  

In service, 

Rep. Debra Lekanoff 

The hard truth is that we cannot move forward without tough choices—and we cannot move forward without revenue. That’s why we are taking a balanced approach: maintaining critical investments while making strategic decisions about how we fund our future. Our goal is to ensure that every dollar we allocate helps build a stronger, fairer Washington. 

Most recently, Speaker Laurie Jinkins shared her “Scoop” on the $12 billion budget shortfall. Speaker Jinkins has served in the Washington State Legislature since the 2011 recession—the last time our state faced a deficit that significantly impacted our budget. The current 2025 budget shortfalls were first reported in fall 2024, and lawmakers have been working to address the challenges ahead. 

As a member of the Appropriations Committee, my focus remains on working with those who provide essential government services at the local, state, and federal levels—services that will be impacted by upcoming budget cuts. Key priorities include: 

• Supporting Washington’s 30 Community Action organizations, which serve over 700,000 of our most vulnerable residents 

• Expanding access to the Washington Scholarship Fund, ensuring higher education remains within reach for all students 

• Protecting natural resources and securing water quality and quantity for future generations 

• Investing in emergency management support for rural communities facing wildfire crises 

• Preserving diverse housing options, from manufactured homes to recovery housing 

• Fighting for fair Medicaid reimbursement rates and insurance coverage to ensure access to healthcare for all Washingtonians 

• Addressing child nutrition in schools, so no student goes hungry 

My legislative colleagues and I are working hard to craft a fair and balanced budget that reflects the needs of all Washingtonians. These decisions won’t be easy, but they are necessary to protect our communities, invest in our future, and ensure economic sustainability for years to come. 

One key takeaway from 2024—shared by educators, students, and administrators—is the critical need for increased school funding. Washington State is increasing funding for Materials, Supplies, and Operating Costs (MSOC) to help schools manage rising costs due to inflation and other financial pressures. 

You may not know, but this 2024 legislative investment increase is helping schools cover costs associated with materials, insurance, and compliance with energy performance standards. When I spoke with San Juan Island School District members and Mount Vernon School District leaders, they emphasized how much this funding helped offset budget shortfalls—but also made it clear that it was not enough to fully meet their growing financial needs. 

Despite these improvements, Washington still falls short of fully funding basic K-12 education, and addressing this gap remains a priority. 

We are tackling the housing crisis head-on through initiatives like the Homeownership Covenant Account, which expands homeownership opportunities and protects mom-and-pop landlords from corporate buyouts. 

In 2023, Washington State established the Covenant Homeownership Program under HB 1474, designed to help first-time homebuyers with down payments and closing costs—specifically addressing racial disparities in homeownership. This initiative provides a 0% interest loan, repayable upon sale or refinancing, with eligible buyers receiving up to 20% of a home’s cost (up to $150,000) in assistance. To qualify, applicants must: 

• Be first-time homebuyers 

• Have a household income at or below 100% of the Area Median Income (AMI) for their county 

• Have lived in Washington prior to 1968 or belong to a racial group that has faced historical discrimination (or have a direct ancestor from such a group) 

Looking ahead to 2025, the Housing Committee is reviewing the program’s status and working with Rep. Jamila Taylor on HB 1696. This bill modifies the Covenant Homeownership Program by: 

• Raising the AMI eligibility threshold to 140% 

• Allowing full loan forgiveness after five years of repayment 

• Adjusting oversight committee membership 

Here’s what we are fighting for this session: 

🔹 Protecting Medicaid Access (SB 5372/HB 1392) – We are working to increase Medicaid reimbursement rates so healthcare providers can continue to serve our most vulnerable populations. No one should lose access to care because their doctor or clinic can’t afford to keep their doors open. 

🔹 Expanding Public Health Coverage (SB 5233) – Our healthcare system must work for everyone. This bill lays the groundwork for a statewide nonprofit healthcare trust, ensuring every Washingtonian has access to essential medical services, regardless of federal uncertainty. 

🔹 Keeping Healthcare Affordable & Accessible (HB 1881/SB 5704) – We are strengthening oversight of health system mergers to prevent corporate interests from reducing access to care and raising costs. Healthcare decisions should be made with patients—not just profits—in mind. 

🔹 Funding for Reproductive & Sexual Health Clinics – I am fighting to increase Medicaid reimbursement rates for reproductive and sexual health clinics, ensuring they can continue to provide critical services, especially in rural and underserved communities. 

Washington has always led the way in protecting healthcare access, and we won’t back down now. As we navigate these challenges, I will continue to fight for a budget that prioritizes your health, your family, and your future. 

Here’s what we are fighting for this session: 

🔹 Blocking Corporate Takeovers of Manufactured Housing (HB 1768) – I introduced a bill to prohibit large investment entities from acquiring additional manufactured housing communities. This will stop out-of-state corporations from buying up affordable housing and displacing families. The Attorney General’s Office will enforce these protections, ensuring accountability. 

🔹 Advancing Rent Stabilization (HB 1217/SB 5222) – No one should face sudden, predatory rent increases that force them out of their homes. We are working to pass a rent stabilization bill that keeps housing costs fair and predictable for tenants, especially in communities already struggling with rising rents. 

Housing is more than just a roof over our heads—it’s about stability, dignity, and the foundation of strong communities. I am committed to standing up for Washington’s renters and homeowners, fighting back against corporate greed, and ensuring every family has access to affordable housing. 

🔹 $100 Million for Salmon Recovery – Our budget includes $100 million to fund seven major salmon recovery projects, restoring critical habitats, improving fish passage, and ensuring healthy salmon runs for future generations. 

🔹 Streamlining Habitat Restoration (HB 1208/SB 5155) – We are advancing legislation to make the Habitat Recovery Pilot Program permanent. This will cut through bureaucratic red tape, improve permitting processes, and allow restoration projects to move forward more efficiently while maintaining strong environmental protections. 

As stewards of this land, we have a responsibility to honor our tribal commitments, protect our natural resources, and restore the balance of our ecosystems. I am committed to ensuring that Washington continues to lead in salmon recovery and environmental preservation. 

Your voices shape the work we do in Olympia, and we’re hearing loud and clear about the issues that matter most to you. Here are some key priorities you’ve raised: 

Fully Funding K-12 Education 

Students, parents, and educators across our district are calling for full funding for special education, public school transportation, and essential classroom resources. A special thank you to the students and families at Happy Valley Elementary School for sending postcards about why fully funding public schools is critical in their lives. Your advocacy matters, and we’re committed to ensuring every child has access to the education they deserve. 

Support for SB 5033: Testing for Toxic PFAS 

PFAS—often called “forever chemicals”—have been found in some Washington water and soil, raising serious health and environmental concerns. SB 5033, co-sponsored by our 40th LD Senator Liz Lovelett, would direct the Department of Ecology to establish testing requirements and analyze PFAS levels in biosolids produced in Washington. The findings would be submitted to the Legislature and made public, helping us determine next steps for protecting our communities. Many of you have voiced strong support for this bill, and I look forward to reviewing it if it moves to the House. 

Support for Common-Sense Gun Safety Solutions 

We’ve made progress in reducing gun violence, but there’s more work to do. We’re hearing strong support for additional measures like:

– Limiting bulk firearm purchases (HB 1132)

– Requiring safe firearm storage (HB 1152)

– Strengthening permitting requirements for firearm purchases (HB 1163).

Your advocacy is making a difference! Keep sharing your thoughts, and I’ll keep fighting for the priorities that matter to you.