Washington lawmakers prepare for the upcoming legislative session in a budget year with a new governor

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What will be funded by the Washington Legislature this year?

The Inland Northwest is buzzing with state lawmakers making their rounds to speak with city leaders and community members about the upcoming legislative session and how to best represent Eastern Washington in the Washington Legislature.

Taxes, public safety, housing, and cost of living are top of mind for recently reelected officials. Some familiar faces are moving to new positions. Democratic state Sen. Marcus Riccelli is moving up from the House to replace former Sen. Andy Billig in the 3rd Legislative District, which covers most of the city of Spokane. In the 4th Legislative District, which stretches from Spokane Valley in the south to Elk in the north along the Idaho state line, Republican state Sen. Leonard Christian will move up from the House to replace longtime Sen. Mike Padden.

Reps. Suzanne Schmidt, R-Spokane Valley, and Mike Volz, a 6th District Republican covering most of western Spokane County, are also returning to Olympia with lofty goals to represent the interests of their constituents. Their return to Olympia will allow them to build on work from previous terms and craft bills they hope will gain bipartisan support when the session starts on Jan. 13.

BUDGET YEAR

According to the state Office of Financial Management, or OFM, agency budget requests for public schools, higher education, the Department of Social and Health Services, and other departments total more than $83 billion.

Those totals don't include spending on transportation or capital projects, which are covered in two separate budget plans. (The current transportation budget is about $14.6 billion, and the capital construction budget is about $10 billion.)

Even with Inslee's budget proposal coming in lower than agency requests, the expected budget deficit is between $10 billion and $12 billion over the next four years, according to Pat Sullivan, the director of OFM. The Legislature may need to make cuts and roll back funding for some programs because state tax revenues are not keeping up with the rising costs of current programs.

Public school funding is expected to see the deepest cuts, with Inslee's proposal coming in roughly $2 billion short of what was requested. The 2023-25 operating budget included nearly $31 billion for K-12 education.

It is still unclear how Governor-elect Bob Ferguson will proceed with budget requests, or if he will choose other areas for cuts.

Inslee has proposed a "wealth tax" that would generate $10.3 billion over four years. The 1% tax on residents with global wealth exceeding $100 million would affect approximately 3,400 of Washington's wealthiest to make up for the budget deficit.

Changes to the state's Business and Occupation, or B&O, tax would also raise about $2.6 billion by increasing the tax rate on approximately 20,000 companies with annual incomes of more than $1 million in the "service and other activities" category. According to Inslee's office, all B&O taxes would also increase by 10% starting in January 2027; however, some small businesses are not expected to be affected by that rate change.

The proposed budget and new "wealth tax" have Rep. Christian concerned that Democrats in Olympia are exaggerating the deficit as a pretext to raise taxes. He is concerned that the cost of living for Washingtonians will increase with the proposed taxes.

"Nobody really has any idea of a number [for the deficit], but what I saw is we're about 4 [billion] as a state," Christian says. "It's easier and more dramatic to say that we're $15 billion in the hole, then you have the right and the reason to raise taxes."

There are concerns the deficit could balloon to $15 billion due to new public employee contracts.

Sen. Riccelli was appointed as the Senate majority floor leader and will be pivotal in fighting for Eastern Washington within the Senate Democratic Caucus. His work will involve referring bills to committees and selecting the order in which bills are debated and discussed on the floor.

Riccelli expects a challenging budget process. However, he is ready to work in a bipartisan manner to address the unique needs in Washington.

"A budget is a reflection of our values as a state, and it concerns me greatly when there is a high need for so many things and so many priorities that people are looking at, from housing security to food security, health care and our schools," he says.

Riccelli's sentiments were mirrored by Senate Majority Leader Jamie Pedersen, D-Seattle, who says there is a need to carefully scrutinize existing spending and commitments and consider trade-offs with additional revenue to fund the desired investments.

Pedersen says the budget shortfall reported by OFM is not the biggest in state history, but is substantial and is not just an excuse to raise taxes, as some colleagues across the aisle suggest.

Rep. Volz says the mismanagement of the state budget shouldn't come at the taxpayers' expense and wants the Legislature to look at staffing levels in state government to reduce spending and inefficiencies before going to taxpayers for money or cutting needed services.

VETERANS

Christian points to the Post Falls Veterans Home, completed and opened in 2023, as a model for what Spokane could expect. The 85,000-square-foot facility is a 64-bed skilled nursing facility with a community center, chapel, therapy room, sports club, multiple common areas, and a bistro.

"They put together a really nice new soldiers home, and I would like to see Spokane be able to do the same," Christian says.

The price of land has gone up, but Christian says if land is purchased, the federal government is expected to cover 60% of the building costs for a new home.

Christian has support from his colleagues in the region, including Volz, an Army veteran who sees the need for veteran housing because many settle in the region thanks to Fairchild Air Force Base.

"That's definitely something I would support," Volz says.

Rep. Schmidt says she supports the funding for a new Veterans Home and would support the legislation when it makes its rounds from the state Senate to the House floor.

Riccelli says a new facility is needed, and he's working in a bipartisan fashion with Christian to make sure the funding for the Veterans Home is passed.

"It's time for a new Veterans Home," Riccelli says. "Though there'll be some federal investment, we have to secure some state investment to go along with that."

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Erick Doxey photo

Eastern Washington lawmakers hope to protect funding for the North Spokane Corridor.

TRANSPORTATION

The North Spokane Corridor is a 10.5-mile freeway that will connect Interstate 90 to U.S. Route 2 and U.S. Route 395 in Spokane. The scheduled 2030 completion of the project is a top priority for Riccelli, who wants to defend investments in the region.

Riccelli will serve on the Senate Transportation Committee and says there is a significant gap in funding for several transportation priorities in Washington.

Christian also wants to see funding for the North Spokane Corridor continue.

"I know the funding has been promised to Spokane folks for a long time," Christian says. "So, I'm hoping that I can work with 3rd District representatives and senators to make sure that the funding for the freeway is still there."

Schmidt sits on the House Transportation Committee and says she will fight for transportation projects in Eastern Washington. She also wants to ensure the freeway is completed.

"I'll be working diligently to follow that [project] and make sure that that freeway is completed and the funding is there," Schmidt says.

OTHER PRIORITIES

He says he had a dying friend who was with their partner for two decades and wanted to ensure their partner received benefits after their death by getting married, but time wasn't on their side.

Christian advocated for his friend by having Spokane County Auditor Vicky Dalton waive the county's separate three-day waiting period, but she informed Christian that state law still required a three-day waiting period. Christian's friend was able to hold on for three days, but passed away shortly after the marriage was official.

Riccelli expressed a strong urge to finish work he started in the lower chamber to provide universal free meals for students. Riccelli's House Bill 1238 was passed into law in 2023. This school year, it requires schools with at least 30% of students (in kindergarten through fourth grade) qualifying for free or reduced meals to provide meals at no charge to any student who requests breakfast or lunch.

Another bill Riccelli worked on to provide complete universal meals for students failed to pass the Legislature because of the total cost. But he still wants to close the gap of about 300,000 students in Washington who don't have access to free meals.

"We know that hungry kids can't learn and won't thrive, and we know there's more disruptions in the classroom and more sickness occurs when kids aren't fed and nourished," Riccelli says.

Riccelli also plans to introduce a bill that would prevent reported medical debt from affecting credit score reporting. He says medical debt is a leading contributor to bankruptcy and impacts a person's ability to rent an apartment.

Volz says he plans to propose a property tax reform bill to freeze assessed property values if the owner is 65 or older. He will also pursue personal property tax exemptions for small businesses and sponsor a bill limiting the governor's emergency powers.

Schmidt has been busy, already pre-filing four bills. Among them, House Bill 1085 seeks to improve school safety by extending penalties for those who make violent threats at extracurricular events. The bill builds on Schmidt's previous House Bill 2079, which passed the House but not the Senate last legislative session and would have added fines and jail time for those who intimidate or attack referees.

EASTERN WASHINGTON'S VOICE

Eastern Washington legislators say leadership roles and critical committee positions help give Spokane County and Eastern Washington the chance to prioritize goals for this region.

"I fight really hard for our district," Christian says. "I was on the Capital Budget [Committee] before, and I mean, I was constantly sponsoring projects and going out and fighting for them."

Schmidt says she's one of the first women to be involved on the House Capital Budget Committee. She plans to utilize her role to be a voice for Eastern Washington and regional governments' priorities.

After speaking with the cities of Spokane Valley and Spokane, Schmidt hopes to figure out how to give some control back to local municipalities by removing state regulations that impact city and county decisions in Eastern Washington.

Riccelli says it's vital to have someone like himself, from the area east of the Cascades, on the leadership team because he can be the voice for regional stakeholders. He explains that one policy doesn't always work for every part of the state, and he can express any concerns for Eastern Washington.

"I would say, first and foremost, I'm an advocate for my community and the constituents that elected me," Riccelli says. "It is important to have a regional perspective as well, and those are the things that I like to bring to the table." ♦