2025 Legislative Session Recap

The 2025 legislative session ended as planned on Sunday, April 27th. As the first year of the two-year session, it lasted 105 days. The “long” session included the adoption of a new two-year State Operating, Capital, and Transportation budget and several key policy proposals.

Like in recent sessions, the House and Senate Democrats held the legislative majority. However, this year they boasted near supermajority membership, with little need to engage meaningfully with the minority party. For the first time in twelve years, a new Governor, Bob Ferguson, was sworn in at the beginning of the session. Three other new statewide elected officials also began their terms at the start of the session: Attorney General Nick Brown, Insurance Commissioner Patty Kuderer, and Commissioner of Public Lands Dave Upthegrove.

The legislature faced a significant challenge as it began its work with an estimated $10-12 billion revenue shortfall for the 4-year budget outlook. A subsequent revenue forecast after the session began predicted an even greater deficit, as much as $16 billion, by some estimates. Governor Ferguson immediately stated that he favored cuts in expenses over options for new revenue. He began his term by asking state agencies for an additional $4 billion in expense reductions.  He also made it clear that he would pursue fulfilling his campaign promise to provide $100 million in new state funding support for local law enforcement, despite the estimated revenue deficit.

In addition to the budget, the legislature entered the new session with priorities for public safety, gun control, housing, and education funding. Several bills were drafted and considered to address each priority. In total, 1,904 policy bills were introduced and considered.

It was also an emotional session with legislators mourning the passing of retired Secretary of State Ralph Munro and former Speaker Frank Chopp. Near the end of the session, Senator Bill Ramos also passed away suddenly and unexpectedly. Senator Chris Gildon lost his wife unexpectedly on the afternoon before the last day of session.

Despite all the challenges, the legislative session wrapped up on time. The state Operating, Capital, and Transportation budgets were very supportive of local governments in general and counties specifically. While some cuts were significant and will impact counties, they were less severe than initially feared. They also include new and increased investments and revenues that will benefit counties.

Notable facts about the 25-27 State Operating Budget:

• $4.4 billion in new revenue is assumed (primarily from ESHB 2081, ESSB 5813, and ESSB 5814).
• All state-shared revenues are maintained, including liquor profits and taxes, cannabis taxes, streamlined sales tax, county criminal justice assistance, and the city-county assistance account.
• Public defense funding is increased by $8.3 million annually, to $27.2 million for the biennium (compared to $10.6 million previously).
• Grant funding for comprehensive land use plan updates is reduced to $18 million (compared to $20 million).
• Grant funding to support adopting the new planning requirements for climate change in county comprehensive land use plans is maintained ($22.544 million).
• $100 million in new funding is provided for local law enforcement grants (ESHB 2015).
• The recovery navigator program funding is reduced by 20%. While this is a cut, it represents a compromise, as the original Senate proposal eliminated it.
• $15 million is provided for crisis relief (or "23-hour") centers.
• BECCA program funding is reduced by $10 million to only $4 million.
• The Municipal Research Services Center (MSRC) is fully funded at $6.827 million.
• The state's share of election costs is fully funded ($38.448 million).
• Funding for Foundational Public Health Services is reduced by $40 million.
• Document recording fees are backfilled with grants to local governments ($117.6 million).
• The Operating Budget includes a $288 million funding transfer from the Public Works Assistance Account.
• The ending balance is $225 million, and $2.3 billion in total reserves.

Important items in the 25-27 State Capital Budget:

• $100 million is provided for the Connecting Housing to Infrastructure (CHIP) program.
• $32.5 million is appropriated to the Brian Abbott Fish Barrier Removal Board.
• The Floodplains by Design program will have $75.8 million for grants.
• Funding is again provided to preserve and replace structurally complex forested state trust lands and encumbered State Forestlands ($23 million).
• $365 million is provided for the public works board for infrastructure projects.
• $114 million is available for matching funds for federal broadband, equity, access, and deployment (BEAD) grants.
• $324.3 million is appropriated for local and community projects and other community grants.

Highlights in the 25-27 State Transportation Budget:

• New revenue includes a 6-cent per gallon gas tax increase that goes into effect on 7/1/2025. The 6-cent per gallon tax will increase by 2% each year beginning 7/1/2027.
• New revenue also includes a permanent dedication of .1% of the current state sales tax.
• $1.09 billion is included to meet state requirements for restoring fish passage.
• $359 million is appropriated for ferry system preservation.
• $127 million for ferry terminal electrification.
• The Federal Fund Exchange Pilot Program is funded at $22 million.
• $9.661 million of the new gas tax proceeds are distributed to counties.
• Vehicle registration and title filing fees increase, resulting in $29.699 million in new revenue for counties.
• CRAB's new grant program for local roads will not be funded in 2025-27 but is anticipated to receive $21.029 million in 2027-29.

WSAC staff prepared a detailed tracking spreadsheet for the state budgets. It includes information on each budget item WSAC has been tracking throughout the session. It is posted on our website, and you can find it by clicking here.

WSAC entered this year’s session with an ambitious legislative priority agenda, as developed by the Legislative Steering Committee. It included priorities for county revenue, funding for public defense, funding for county coroners, housing, transportation, behavioral health, and clean energy siting. Twenty separate bills and one proviso were introduced during the session supporting WSAC’s priorities.

This was a good session for counties. While we weren’t successful on all our priorities, five were completed or made significant progress, including the passage of three WSAC-drafted bills.

The WSAC legislative priorities that were completed or made progress this year include:

• Funding for public defense—While the policy bills (HB 1592/SB 5404) failed to pass, the legislature appropriated new funding in the 25-27 State Operating Budget. The new funding more than doubles the state’s support for public defense.
• Behavioral health—E2SHB 1813 passed, requiring the State Health Care Authority to prepare for a reprocurement process for Medicaid managed care contracts by 2027.
• Housing – ESB 5471 passed, allowing counties to adopt zoning in urban growth areas and limited areas of more intensive rural development to accommodate middle housing without being subject to third-party appeals.
• Clean energy – SB 5317 passed, providing liability protection for counties providing technical services to the Energy Facility Siting Evaluation Council during the construction and operational phases of a clean energy project.
• Transportation—ESSB 5801 provided new funding for county roads through a share of the new statewide gas tax increase and an increase in vehicle and title registration fees.

Staff is also preparing a “2025 End-of-Session” report. It should be available on our website in about a week. It will include more detailed information on some crucial legislative policy proposals WSAC was engaged in during the session.