And they’re outta here
Taxes, fees, budget cuts, and a weird wealth tax vote as lawmakers blow town
You can’t say it was dull. The 2025 Legislature adjourned Sunday evening, and some of the stuff they did is definitely going to leave a mark.
Lawmakers ratcheted taxes up by nearly $9.4 billion–more than $12B if you add tax increases at the local level–to fill a gaping budget hole, while slashing spending in some areas, notably health care.
They spent heavily on special education, but left other urgent needs in K-12 largely unmet.
They largely passed on making major changes to the state’s tax system aimed at taxing the wealthy, choosing instead to boost the existing business & occupation tax and expand the sales tax to cover more services. They also boosted a bunch of other taxes and fees. (Read on for a couple you probably haven’t heard of.) The business community writ large ain’t happy, but lawmakers largely avoided goring the robotic oxen of Big Tech, reducing the likelihood that those companies pour a bunch of money into a ballot fight to undo the Legislature’s work.
They (maybe) mollified Gov. Bob Ferguson by coughing up his $100 million to hire new cops (read on for some detail on that) and at least partly bowing to his demand to dramatically shrink their package of tax increases. Is he happy? His statement on lawmakers’ departure teases some veto action in the coming weeks.
For the first time, lawmakers imposed a mild form of rent control, and they allowed striking workers to claim unemployment benefits.
A major change is in store for how the state’s recycling system works, as is a new requirement that gun buyers undergo safety training and acquire a permit before buying a firearm.
In the weeks ahead, we’ll dig into how some of that stuff got done. For now, a few choice decisions and consequences of the session-ending deal.
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