Tag Archives: operating budget

May 29, 2025 | E-newsletter | 2025 Legislative Wrap-Up

Sen. Matt Boehnke, R-Kennewick/Credit: Washington State Senate

Dear Friends and Neighbors,

As the 2025 legislative session came to a close, one thing became clear: Washington State missed a key opportunity to deliver a sustainable, balanced budget that would not hurt hardworking families and small businesses. On May 21, the governor signed the majority party-sponsored $77.9 billion operating budget, passing it strictly along party lines and leaving behind the responsible alternative that Senate Republicans offered—our $ave Washington Budget.

The governor’s budget aims to close the shortfall caused by years of overpromising and overspending. However, instead of adopting a disciplined and thoughtful approach to live within our means, it imposes over $9 billion in new and increased taxes on Washingtonians. These taxes include expanded sales taxes on services such as IT support and temporary staffing, increases to the capital gains tax and estate tax, as well as higher business and occupation (B&O) taxes that will disproportionately impact job creators. These are not just numbers on a page—these tax hikes will affect every household and small business striving to stay afloat in an uncertain economy.

It is estimated that over the course of four years, these tax increases will total $2,000 per family, negatively affecting different families in various ways.

We presented a superior solution with better priorities and a brighter future for our state. The $ave Washington Budget was a comprehensive, balanced alternative that safeguarded essential services, such as public safety, K-12 education, and critical infrastructure, without increasing taxes. It aimed at reprioritizing existing funds, redirecting unspent pandemic-related resources, and prudently utilizing surplus pension reserves (with no effect on pension obligations) to help bridge the budget gap. Additionally, we pinpointed over $1 billion in strategic savings across state agencies—excluding vital functions—by reducing bureaucracy, cutting excessive administrative costs, and eliminating duplicative programs.

In simple terms, our budget demonstrates that it is possible to govern more effectively without imposing additional burdens on taxpayers. We don’t face a revenue issue—we face a spending issue. Since 2017, state expenditures have more than doubled. Yet working families are being asked to contribute even more, despite the challenges of rising inflation, soaring housing costs, and economic unpredictability.

The $ave Washington Budget was grounded in the belief that government should be a good steward of the people’s money. Rather than expanding the size of state government, we focused on achieving better results from the dollars we already collect. That’s what Washington taxpayers expect and deserve.

It is disappointing that the majority party rejected this reasonable alternative without holding a hearing or engaging in serious debate. Budgeting should not focus on political victories; it should be about finding the best path forward for all Washingtonians.

As your state senator, I will continue to advocate for fiscal responsibility, government transparency, and economic growth, particularly on issues that impact the Tri-Cities area. As we look ahead, I will continue to oppose unnecessary tax hikes and support policies that promote economic growth, rather than expanding government.

Thank you for the opportunity to serve you. I am dedicated to providing responsible leadership in Olympia—because Washington taxpayers deserve nothing less.

Read the entire May 29 newsletter

Public hearings on five new tax bills this Wednesday

Sen. Matt Boehnke, R-Kennewick/Credit: Washington State Senate

OLYMPIA… Before the 2025 legislative session concludes in 12 days, lawmakers must adopt three new state budgets – the largest being the operating budget, which funds most state agencies and the services they provide.

Our state does have a budget gap caused by chronic overspending, but Senate Republicans have proposed a plan to close it. Using the $5 billion in additional revenue that is expected, and a combination of savings and efficiencies, we can fund the priorities Washingtonians share, boost K-12 funding by billions, protect the state’s rainy-day fund, and avoid cutting services, all without a single tax increase. The “$ave Washington” plan is Senate Bill 5810 (more detail is available here).

The Senate’s majority Democrats are treating the budget gap as an excuse to raise your taxes. In late March they proposed over $21 BILLION in new taxes, and just in time for today – Tax Day in America – they introduced five more tax bills, totaling an estimated $12 BILLION.

Again, legislators aren’t facing a revenue shortage — the problem is runaway spending. It’s legislative negligence, not fiscal responsibility, for Democrats to propose tax hikes even though another $5 billion is expected to come in, without any change in the tax code. Washington families are already struggling with inflation, rising housing costs, and higher energy bills. The last thing they need is a heavier tax burden.

The five new tax bills will be heard in the Senate Ways and Means Committee meeting at 5:30 p.m., tomorrow, in Senate Hearing Room 4 in the John A. Cherberg Building on the Capitol Campus in Olympia.

Here’s my take on what each of the new tax bills means. Keep reading for how you can let the committee know your opinions about them.

SB 5815 – B&O Tax Expansion

This bill tells job creators, “Thanks for investing in Washington — now here’s your punishment.” It’s anti-growth, anti-innovation, and out of touch with the realities of running a business in this state.

SB 5814 – Sales Tax Expansion

All session long we’ve heard the majority talk about making the wealthy pay more. But as they say, talk is cheap, because increasing the sales tax on certain services has the opposite effect – it’s harder on lower- and middle-income families.

SB 5813 – Capital Gains & Estate Tax Hikes

When the tax on capital-gains income was imposed by Democrats in 2021, Republicans warned that it would eventually fail to generate the desired amount of money – and then the majority would look to expand the tax. Sure enough, that day has arrived, and Democrats want to increase the tax by 40% on an upper level of capital gains.

SB 5812 – Property Tax Increases

Tripling the cap on the annual growth rate of property taxes wouldn’t just go against the will of the people who set the cap at 1%; doing so when Washington already has a shortage of affordable housing would really squeeze families, seniors, and renters. The truth is, governments can already exceed the cap – they just need voter approval, but their lives would be easier if Democrats change the law.

SB 5811 – EV Credit Tax

The majority seems to have a love-hate relationship with electric vehicles. You can get a credit from the state for buying an EV, but at the same time EVs are blamed for a drop off in the gas-tax revenue that helps fund highway maintenance and construction. This takes the anger in a different direction, because it appears Tesla would be the only automaker hit by this bill.

How can you make your views known?

Visit this link and choose a bill to open the “select type of testimony” options. The simplest option is to have your position “noted for the legislative record” – meaning PRO or CON.

VIDEO—Sen Matt Boehnke addresses concerns over proposed Democrat tax increases, highlighting their impact on technology, higher education & manufacturing. He urges citizens to oppose these measures to protect businesses and innovation #waleg

WATCH | YOUTUBE

Boehnke opposes Senate Democrats’ $78.5 billion budget, largest tax hike in state history

Sen. Matt Boehnke, R-Kennewick/Credit: Washington State Senate

OLYMPIA… Sen. Matt Boehnke joined Senate Republicans today in voting against Senate Bill 5167, the majority Democrats’ 2025-27 operating budget, which dramatically increases state spending and relies on the largest set of tax hikes in Washington State history.

Prior to adopting their $78.5 billion budget proposal, majority Democrats rejected the Senate Republicans’ $ave Washington approach, which would have balanced the budget without raising taxes or cutting essential services. That plan was voted down along party lines, 30-19.

Despite bipartisan opposition, the Senate budget was passed 28-21. Once the House adopts an operating budget, which is expected to happen Monday, budget leaders from the two chambers will meet to work on a compromise version.

Senator Boehnke, R-Kennewick and Ranking Member on the Senate Environment, Energy and Technology Committee, issued this statement:

“The budget passed by the Democrats today would cut support for child care, force an increase in tuition at our state-run colleges and universities, raise the costs of hunting and fishing licenses and the Discover Pass, reduce the pay of state employees through furloughs, and more – all while increasing taxes by a record $21 billion. And they adopted that budget after voting down the budget we proposed, even though our plan didn’t require a single tax increase or make a single service cut yet supports K-12 education and other priorities we all share.

“A responsible budget isn’t just about how much we spend—it’s about setting the right priorities, and the priorities in the majority’s budget are clearly wrong. It’s more than just the tax hikes and cuts; they would almost completely drain the state’s rainy-day fund, even though our state is not in a recession and revenues are still on the rise. The budget we offered is focused on preserving core services, and the complete lack of tax increases ensures fiscal responsibility. That’s real value for Washingtonians, and the better way for our state. Fortunately, the Senate budget isn’t the final version, and there is still time for some sanity to overcome the tax madness we’re seeing from the Democrats.”

The 105-day legislative session began Jan. 13 and is scheduled to conclude on April 27.

Boehnke, Senate Republicans push back on Democrats’ tax-heavy budget proposal

Sen. Matt Boehnke, R-Kennewick/Credit: Washington State Senate

OLYMPIA… Sen. Matt Boehnke is among the Senate Republicans sounding the alarm over the 2025-27 operating budget proposed Monday by the Senate’s majority Democrats, which calls for nearly $78.5 billion in spending and includes significant tax increases that would burden Washington families and businesses. The plan, which outspends the no-new-taxes, no-cuts Senate Republican “$ave Washington” proposal by $3 billion, prioritizes government expansion over real solutions for working families.

Senator Boehnke, R-Kennewick and Ranking Member on the Senate Environment, Energy and Technology Committee, issued this statement:

“Washingtonians are already struggling with the high cost of living, yet Democrats are pushing a budget that demands billions in new taxes while cutting critical services. This plan fails to support working parents and small businesses and creates additional barriers for students to access higher education. It’s clear where their priorities lie—growing government instead of easing financial burdens on taxpayers and increasing college attendance. The ‘$ave Washington’ budget from Senate Republicans proves we can fund essential services, fully support K-12 education, and protect our most vulnerable citizens without raising a tax or cutting a single service.”

“The Democrats’ budget proposal requires the largest tax increases in state history, yet it still leaves behind those who need help the most. Cutting financial aid while raising tuition, slashing childcare support, and making outdoor recreation more costly is not the way to move Washington forward. On top of that, the Senate majority’s plan would even double the annual bed fees in long-term care facilities like nursing homes and assisted-living facilities. Republicans have proven there is a better way—we can fund key priorities, invest in public safety, and balance the budget without burdening families with higher taxes.”

The 105-day legislative session began Jan. 13 and is scheduled to conclude on April 27.

VIDEO

Sen. Matt Boehnke warns of rising taxes and tuition, emphasizing the impact on higher education. Tuition hikes across WA colleges will affect students statewide. He urges the public to stay engaged and voice concerns against increasing tuition.

WATCH