On Thursday, April 17, Ferguson signaled for the second time his disapproval of how lawmakers planned to address a projected $15 billion four-year funding gap. After Ferguson refused budget proposals reliant on a wealth tax, Democratic leadership proposed an alternative last week in the form of a $12 billion revenue package that would impose new taxes on wealthy businesses, properties, stocks, some tech services and products like Zyn nicotine packets.
In response, Ferguson called the plan “unsustainable” and “too risky.” He said Washington needs a balanced budget that’s in “the best financial position to weather more cuts,” citing concerns about looming federal funding cuts and tariffs from the Trump administration.
Much more of this back-and-forth could be ahead. If lawmakers can’t reach a deal by Sunday, they will likely have to enter a special session to finish their work. The budget must be finalized by June 30 or the state will run out of funds.
With just seven days left of the legislative session, here’s a look at where things stand in Olympia.
Sticking points
At this point in the session, lawmakers are switching gears to finish writing their budgets and incorporate final amendments on bills. Much of this deal-making will happen behind closed doors, followed by public floor votes in the House and Senate.
Taxes and budgeting
Legislators’ biggest — and messiest — to-do list item is solidifying the state’s budget for the next two years. The state is facing an estimated $15 billion operating budget shortfall over the next four years; filling it has proven difficult and contentious.
Democratic lawmakers have proposed budgets that would rely on some hefty new taxes, including a “wealth tax” levied on the state’s highest earners. Ferguson threatened to veto those plans. Last week, Democrats offered an alternative proposal that would include an expanded capital gains tax, tax hikes on wealthy businesses, raising the cap on property taxes and adding a sales tax to nicotine pouches and some tech activities.
They argue that the state needs new revenue to avoid deep cuts to state services.
Ferguson has acknowledged the need for a more progressive tax system — in which lower earners pay less of their income in taxes than higher earners — but has pushed lawmakers to trim spending first.
Ferguson’s statement last week said lawmakers “have made progress” and that he would continue to work with budget writers. He did not say which taxes he would support.
Republican leaders support Ferguson’s pushback on taxes, though they’ve criticized his concerns about the Trump administration and his support for progressive revenue. The GOP has argued that the budget could be balanced without any new taxes at all.
Democrats could release their final budget proposal by the end of this week.
Rent cap debacle
A proposal to cap yearly rent increases and limit move-in and late fees has caused rifts between the House and the Senate.
The House passed a version of the bill last month that would cap yearly rent increases at 7% for renters in apartments and 5% for mobile homeowners. It also limits move-in fees and security deposits for mobile homeowners.
The Senate last week made major changes to that policy. It passed a proposal to cap yearly rent increases at 10% plus inflation for renters in apartments and added exemptions for single-family homes not operated by a corporation.
That change sparked disagreement among Democrats in the Senate and concern from those in the House who supported the 7% cap.
House Speaker Laurie Jinkins, D-Tacoma, told reporters last Thursday that conversations about this between the chambers are underway, but shared no details on what compromises might be made.
“I think it’s pretty obvious that the amendments that the Senate took are not things that are welcomed by a lot of our members,” she said.
Gas tax and fish passages
Both chambers will need to reach agreements on a transportation budget to fund highways and road projects across the state, and on a capital budget to pay for statewide construction projects.
Because current gas and vehicle taxes aren’t bringing in enough revenue to cover promised highway and transit projects, the transportation budget faces a funding gap. Each chamber offers its own package of how to raise more money: The House is proposing a 9-cent increase to the state gas tax, while the Senate has proposed a 6-cent increase. The current state tax is 49.4 cents per gallon.
Lawmakers also need to come up with funding for federally obligated removals of barriers to fish passages along state highways. The Senate has proposed using the capital budget to pay for this. The House would prefer to keep it in the transportation budget.
Parents’ rights
Lawmakers are considering competing proposals to update an initiative that passed the Legislature last year outlining rights parents have when accessing information about their children in public schools.
Democrats argue implementing the initiative has been confusing for school districts, with some of its language contradicting state and federal law. But Republicans say this year’s changes roll back rights for parents to access medical and mental health information about their children.
Senate Bill 5181 adjusts the initiative language to remove some parental access to medical and mental health records as well as prior notification of when medical services are being offered to a child and when their child needs follow-up medical care outside of school hours. Democrats argue some of these rights are still included in other state and federal laws.
A separate bill, House Bill 1296, is also still in motion. That proposal includes much of the same language as the Senate bill but would also set up a “bill of rights” for students, including protections for those experiencing harassment or discrimination.
The Legislature could pass both bills separately or could choose to consolidate them.
Guns, striking workers and more
Plenty of other bills also await compromises in the coming week.
A bill requiring permits and safety training to purchase firearms awaits approval from the House after the Senate added amendments to exempt security guards and private investigators, and to delay the effective date.
A proposal to give striking workers unemployment insurance passed the House last week but with an amendment specifying imposing a four-week limit on the benefits. That conflicts with the eight weeks approved by the Senate in March.
Changes made to a bill that would overhaul the state’s recycling system must also be consolidated. The proposal would require producers of most packaging materials to pay for a statewide recycling system.
Expansions and added protections to the state’s Paid Family and Medical Leave program are awaiting final approval from the House.
What’s already done
Despite the ambiguity lingering around so many proposed policies, lawmakers have reached consensus on some policies, and as more are finalized, the Legislature’s to-do list is waning.
At this point in the session, no new bills can be introduced, and lawmakers can no longer consider policy bills unless they have funding attached. A host of bills have already made it all the way through the process.
Bills to make clergy members mandatory reporters of child abuse or neglect, tighten labor laws for minors, expand the covenant homeownership program, establish the state marine forest and make Eid al-Fitr and Eid al-Adha state holidays have all passed the Legislature.
As some bills await a signature from the governor, his approvals of others are well underway. Ferguson has signed 68 bills as of Friday.
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