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Dear Friends and Neighbors,
After Democrats secured supermajorities in both the House and Senate, the first vote of the session in the House was to change the House rules, ending a 132-year precedent that allowed floor debates to end with a simple majority vote. This set the stage for the largest tax increase in our state’s history.
Record tax increases in the state operating budget
At the beginning of the session, Washington state faced a large budget deficit due to overspending and overly optimistic revenue growth projections. The estimated deficit ranged between $7.5 billion and $16 billion, depending on assumptions about additional spending. Ultimately, what was passed was a record-setting $77.9 billion 2025-27 operating budget, which included an 8% increase in spending and a $15 billion increase in taxes. Most of these taxes are regressive and will disproportionately affect struggling families the most. They include:
- House Bill 1392: Increases taxes on health insurance.
- House Bill 2049: Allows local property taxes to increase and creates McCleary 2.0.
- House Bill 2061: Creates a 10% excise tax on duty-free stores.
- House Bill 2081: Increases the B&O tax on most businesses, including manufacturers, food producers, financial institutions, and retailers, which will be passed to consumers.
- Senate Bill 5583: Increases hunting and fishing license fees.
- Senate Bill 5390: Increases the Discover Pass fee by 50%.
- Senate Bill 5801: Increases the gas tax by 9 cents per gallon and diesel by 12 cents per gallon, increases EV registration fees by 50%, doubles the rental car tax, and increases the ferry fare.
- Senate Bill 5813: Increases capital gains and estate taxes.
- Senate Bill 5814: Increases the sales tax on various services and goods, including sales tax on cigarettes to more than $5 per pack and a 95% tax on Zyn and other tobacco products.
These tax increases will hammer Washington families, cripple businesses, and hurt the most vulnerable in our state. Many of these increases will tax the joy out of Washingtonians.
Republicans were completely shut out of the budget process as Democrats negotiated among themselves the level of taxes and spending in the final bills. There was no transparency, and we had only 24 hours to read through the 1,366-page budget document before taking an up or down vote. I voted no.
While hardworking families will find it harder to put food on the table, the majority party funded $150,000 grants to people of certain races for a downpayment of a home as a form of reparations, laser hair therapy for transgendered inmates at the Purdy prison, and studies on environmental issues in Africa.
Capital budget – In the last biennium, I helped procure $54 million for Phase 1 of the West Sound Tech building, with the understanding that Phase 2 would be funded in this biennium. This building is currently open to the elements and unusable for students. The first budgets released from the House and Senate provided no funding for West Sound Tech, so your entire Kitsap delegation worked to secure full funding in the final capital budget to complete the building. This was a massive win for the district. Read more about this victory from this Kitsap Sun article.
I was able to secure funding for several other local projects, including:
- $263,000 for the South Kitsap Helpline Food Bank.
- $247,000 for the Bremerton Masonic Temple Kitchen Renovation.
- $211,000 for a Key Center Emergency Backup Power System.
- $1,030,000 for the Gig Harbor Sports Field.
View all of the 26th District capital budget projects here.
Join me tomorrow evening (Wednesday) for an online Town Hall Meeting
I invite you to join me and your 26th District neighbors this Wednesday, April 30, for an online town hall meeting to receive an update on the 2025 legislative session and have your questions answered.
26th District Virtual Town Hall Meeting with Rep. Michelle Caldier
Wednesday, April 30
6:30 p.m. – 7:30 p.m.
Preregister at: https://tinyurl.com/Caldier-Townhall or scan this QR code:
I work for you throughout the year
Although the 2025 session is now in the history books, I continue to serve as your state representative. Please do not hesitate to contact my office with any questions, comments, or suggestions regarding legislation or state government. My Olympia office remains open year-round. You’ll find my contact information below.
Thank you for the honor of allowing me to serve you and your neighbors throughout the 26th District!
Sincerely,
Michelle Valdez
