Washington Legislature Approves $77.9 Billion Budget Amid Tax Debates

Washington state lawmakers approved a nearly $78 billion two-year budget that addresses a substantial revenue shortfall through a mix of new taxes, spending cuts, and targeted investments. The budget increases taxes on property, gas, real estate, and certain business sectors, drawing criticism from Republicans who argue it raises costs for residents while limiting public input during negotiations. Despite significant reductions in areas such as higher education, health care, and behavioral health, the budget preserves and even increases funding for K-12 education, long-term care, and law enforcement hiring grants, while maintaining the state's rainy day reserve fund. No furloughs for state employees were included, and the budget honors collective bargaining agreements. A separate $15.5 billion transportation plan, funded by the first gas tax increase in nearly a decade and other new fees, will support highway projects, ferries, and environmental initiatives. Democratic leaders described the process as challenging but necessary to maintain essential services, while Republicans contended the approach lacked transparency and bipartisan collaboration.