OLYMPIA, Wash. – It is make or break time for legislators, as Saturday and Sunday mark the final days for the 2025 regular session and several issues remain outstanding.
The main issue is the two-year operating budget, including the revenue bills that will fund all that spending.
House and Senate Democrats settled their differences on the spending details, with the final balanced budget proposal expected to be released Saturday morning with votes throughout the weekend.
As for revenue, bills increasing the capital gains and estate taxes, extending sales taxes to computer, security and temporary staffing services and removing certain tax preferences all passed out of the legislature Thursday evening.
Bills increasing business taxes and limits for school levies were voted out of the Senate Ways and Means committee Friday afternoon, headed toward the full chamber.
Governor Ferguson had been critical of the tax proposals pushed by his fellow Democrats – but speaking with reporters Friday morning, he was more encouraging.
“I’m confident that at this stage, based on the conversations we’re having and what I’m seeing from their hard work and the legislation that’s being approved, that I think we’re on track to get to a budget that works for Washingtonians,” he said.
The governor said he is “cautiously optimistic” a balanced budget will be passed by Sunday’s deadline, but reiterated a comment earlier this week that he would be okay with a few extra days to get everything right.
Also outstanding are final passage of the capital and transportation budgets. Legislators are expected to release transportation spending details Saturday morning. On Thursday, the House passed a $3.2 billion revenue package which includes a gas tax increase. The Senate will have to agree to changes the lower chamber made before it is sent to the governor.
Lawmakers will also be tasked with considering rent caps after a compromise on the contested legislation was reached Thursday night. The deal was prompted by the House and Senate passing different versions of a bill to limit annual rent increases, with some Senate Democrats concerned the caps could hurt housing accessibility.
The settlement would put a cap at the lesser of 10% or 7% plus inflation, with limited exceptions. That cap and other provisions under the bill would expire in 15 years. Rent increases for manufactured and mobile home renters would be capped at 5% a year with no expiration date.
Democratic lawmakers who worked on the compromise say while they wish they did not have to increase the cap, the legislation is a first step in the right direction for renters.
“On the whole, this bill will provide meaningful protections for Washingtonians and predictability – which for folks that are renting and don’t know what those rent increases will be, knowing and having that consistency and that predictability I think is gonna provide a lot of relief for people,” said. Sen. Jessica Bateman, D-Olympia.
Republicans have been staunchly opposed to the legislation, regardless of how high the increase cap goes. They have consistently raised concerns that limiting rent increases is an overreach that will hurt housing supply and disregards landlords.
“I do believe that the policy that’s before me tonight is going to be devastating to our housing providers,” said Rep. Sam Low, R-Lake Stevens. “We need housing providers to be part of the solution to the housing crisis that we have.”
It is unclear how the changes will impact those Senate Democrats who advocated for a higher cap. Also casting a shadow is what the governor could do. He declined to tell reporters Friday where he stands on the bill, saying he is having conversations with all lawmakers about their concerns and letting the process play out.
Albert James is a television reporter covering state government as part of the Murrow News Fellowship program – a collaborative effort between news outlets statewide and Washington State University.
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