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Dear Friends and Neighbors,
I hope you received the 2025 Session Review mailer from Rep. Gloria Mendoza and me. If not, click here to read it.
The Legislature has been adjourned for almost three months, but there is still a lot happening related to our state government. Washington state is already facing concerning financial news. Additionally, your pocketbook may start feeling a little lighter as some of the new or increased taxes passed by majority Democrats have taken effect this July. Finally, I want to remind you that I work for you year-round. The Legislature is not in session, but I am available to meet, assist you in navigating state government, tour facilities, or speak to your association or organization. Please do not hesitate to contact my office.
Revenue forecast
On Tuesday, June 24, the Economic and Revenue Forecast Council released its June revenue forecast. It showed tax collections for the two-year operating budget will be hundreds of millions of dollars less than what the Democrat majority party assumed when they passed the budget. Despite concerns and warnings from Republicans, Gov. Bob Ferguson signed the budget at the end of the legislative session.
According to the revenue forecast, the state can expect more than $1 billion less revenue over the next four years than initially projected. The revenue projection leaves us with a $2 million ending fund balance. That is a drop in the bucket for a budget of this size. The ending fund balance at the end of the four-year outlook is projected to be -$331 million.
The operating budget for the next biennium has just kicked in (July 1). Yet, here we are facing a budget deficit.
- Tax collections tumble again in latest Washington budget forecast
- WA may have to dip into emergency reserves, despite historic tax increases
- Revenue forecast reveals $720M gap as Gov. Ferguson eyes future budget challenges
You will recall that the Democrats passed a record-setting budget of $78 billion, which increased spending by $6 billion, an 8% increase. Along with it came the largest tax increase in state history, more than $9 billion.
The lack of priorities is disappointing and frustrating. The budget has more than doubled over the last decade, yet they still cut wildfire prevention, foster care, and care for the disabled.
The governor wants to blame the federal government for our financial woes. Our neighbors, Idaho and Montana, seem to be getting along just fine.
Republicans were adamant that the majority was going in the wrong direction. The editorial boards also heeded warning. Unfortunately, taxpayers and working families in Washington will bear the brunt of the cost.
Affordability
Speaking of paying the price, since the beginning of the legislative session, I have talked about Washington’s poor ranking in affordability compared to other states. The increase and new taxes recently passed will make it much worse. Some of the new or increased taxes go into effect this July.
Recently, a headline caught my eye that relates to what Republicans have been saying about affordable housing.
According to a Bankrate.com study, Washington state ranks fifth in the nation for hidden costs associated with homeownership. Washington state homeowners face an average annual cost of $27,444. These costs include expenses such as property taxes, homeowners’ insurance, utilities and maintenance.
Bankrate’s hidden homeownership costs study aligns with its 2025 Housing Affordability Study from March, which found that Americans need a six-figure annual household income – $116,986, to be precise – to afford a home today comfortably. The same report found that while housing prices have increased by 197%, the median household income has risen by only 40%.
The study notes that Washington’s home maintenance costs are the third-highest in the nation, and it has the fourth-most expensive internet and cable costs.
The affordability of homeownership is becoming increasingly difficult. Click here to learn more about Washington’s affordability crisis. To learn more about some of the proposed solutions introduced by House Republicans, click here.
Tax increases
On July 1, the 6-cent increase in the gas tax took effect. Starting July 1, 2026, the rate will increase by 2% annually. The legislation, Senate Bill 5801, includes several significant fee increases as well, totaling $3.2 billion over six years. As of July 1, Washington’s gas price was a $1 higher per gallon than that of our neighbor, Idaho, and $1.25 higher per gallon than the national average. Below you will find an interesting article and opinion piece regarding the increase in Washington’s gas tax.
- Higher gas tax takes effect July 1 in Washington state
- OPINION: The story you’re not being told about gas prices in Washington, Idaho (Chris Cargill, president of Mountain States Policy Center/Tri-City Herald)
Employers will also see their taxes increase this month. Under Senate Bill 5814, businesses that provide services such as advertising, digital marketing, and analytics platforms will be subject to a sales tax expansion.
For more information on higher taxes and fees in July, check out:
This is only the beginning of the irresponsible budgeting and unnecessary taxes that will affect you, making it difficult to buy groceries, pay bills, find affordable housing, and raise a family. It is time for the majority party to start responsibly managing state revenues and the operating budget, rather than having Washington taxpayers continually open their wallets to bail them out.
Keeping our children safe
Last month, the Washington State Department of Children, Youth and Families reported a distressing increase in the number of children under state supervision who have died or suffered near-fatal incidents due to opioid exposure; over half the critical incidents involved fentanyl.
Part of the reason we are seeing an increase in deaths is the Keeping Families Together Act, passed in 2021. The legislation is intended to reduce the children placed into foster care and support family members to take care of children when they must be placed out of their homes to keep them safe and protect them.
Unfortunately, it has led to children being in dangerous situations for too long, prioritizing family preservation over child safety. House Republican Rep. Travis Couture introduced legislation last session, House Bill 1092, to amend this act and address this issue. The bill was referred to the House Human Services, Youth and Early Learning Committee, which I serve on, but it did not get a public hearing. The committee should make this a priority for the 2026 session.
To make matters worse, Gov. Bob Ferguson vetoed funding for the only specialized medical facility in western Washington that cares for drug-exposed babies.
The Pediatric Interim Care Center has been in operation for 35 years. They were not given a heads-up, and the contract allowing DCYF to place infants in the care of PICC was ended. House Republican leadership recently sent a letter to Gov. Ferguson and DCYF Secretary Tana Senn which you can find here.
Regardless of your party affiliation, background, zip code, or ethnicity, I hope we could all agree that we need to protect our most vulnerable. There is no better way to do that than amend the Keep Families Together law and restore funding to the Pediatric Interim Care Center. What is happening to these children and infants is unacceptable.
Stay informed
There are constantly things happening in our state government. It is important to stay informed even though the Legislature has adjourned. The websites below are a good source of information.
- Capitol Buzz – Daily news clips | Daily news clips.
- The Ledger | A legislative news aggregator.
- The Current | An online legislative publication from the Washington House Republicans.
As I mentioned, please do not hesitate to contact me if you need assistance navigating state government, want to schedule a meeting, would like me to tour a facility, or speak to your association or organization.
I hope you and your family had a great Fourth of July. It is an honor to serve the great people of the 14th District!
Sincerely,
Deb Manjarrez
