Washington State Faces $1.6B Budget Gap as Senate Approves Millionaires Tax Bill

Washington state's legislative session is in full swing, grappling with a $1.6 billion budget shortfall amid a modest revenue uptick. The February revenue forecast from the Washington State Economic and Revenue Forecast Council projects $827 million more for the current biennium and $1.03 billion for 2027-29 compared to November, offering $438 million in extra appropriations but not erasing the deficit, according to the University of Washington Office of Finance, Planning and Budgeting. Lawmakers face tough choices as the session nears its March end. A headline-grabbing development is the Senate's 27-22 approval of SB 6346, the so-called millionaires tax, imposing a 9.9% rate on income over $1 million starting January 1, 2028, potentially generating $3.4 billion annually for public defense, Working Families Tax Credit expansion, small business credits, and the general fund, as reported by OPB. The bill, sponsored by Sen. Jamie Pedersen, D-Seattle, now heads to the House amid partisan divides and calls from Gov. Bob Ferguson for more relief to families and businesses. Republicans decry it as a risk to economic growth, while an estate tax rollback also advanced 38-11. Other key moves include Senate passage of SB 5925 expanding the Attorney General's investigative powers on wage and discrimination issues, and SB 5974 allowing state boards to remove sheriffs whose certifications are revoked, sparking debates on local control, per Greater Spokane Inc. The House passed HB 1390 to phase out the Community Protection Program for high-risk developmentally disabled clients by 2025, prioritizing community-based care. Economically, businesses eye tax shifts like last year's service sales tax expansions, with some rollbacks proposed. No major employment surges or indicators stand out, though concerns linger over wealthy residents leaving, as noted by the Association of Washington Business. Community fronts see steady education funding pushes via the Workforce Education Investment Account, up $172 million this biennium. Public safety and infrastructure remain focal, but no standout projects dominate headlines. Weather has been uneventful, with no significant events reported. Looking Ahead, watch House action on the millionaires tax, policy committee cutoffs by February 25, and budget proposals next week as the session races toward March 12. Thank you for tuning in, listeners. Please subscribe for more updates. This has been a Quiet Please production, for more check out quietplease.ai. Some great Deals https://amzn.to/49SJ3Qs For more check out http://www.quietplease.ai This content was created in partnership and with the help of Artificial Intelligence AI.