OLYMPIA, WA – “Santa’s gonna bring us a good budget.” Those were among Washington Governor Jay Inslee’s final words to members of the media today during a press availability regarding his proposed 2023-2025 Operating Budget. The $70.4 billion price tag includes investments in behavioral health, housing, and homelessness across the State. There is also a proposal for a referendum to increase funding for the speedy construction of thousands of new housing units. It would require approval from voters.
Inslee says homelessness is a “housing deficit” problem.
Washingtonians will not tolerate this continued “scourge of homelessness,” Inslee says.
Inslee says there are around 25,400 people dealing with homelessness in the State.
Meanwhile, Senate Republican budget leader Lynda Wilson (R-Vancouver) is calling the proposal a “disappointment for Washington families.” She says the proposal fails to put priority on issues that affect Washington families most.
“Even though the state economist has warned us about the risk of a recession, the governor wants to spend just about every tax dollar available. His budget includes more than 2 billion dollars that were deliberately stashed last year outside of the constitutionally protected rainy-day fund. It’s disappointing that he would increase state spending by 9.8% and still fail to invest in thoughtful answers to the things that concern Washington families most: the safety of our communities, the cost of living, and education issues that include K-12 learning loss. Those are Senate Republican priorities for 2023, but they don’t seem important to the governor,” Wilson says.
Meanwhile, Wilson says Inslee’s support for behavioral health is appropriate, at least on the surface, but “that will do nothing in the short term to deal with the record number of murders and fatal drug overdoses in our state, or help hire law-enforcement officers to fight crime in our communities.”
Wilson says while she is sure Inslee views his climate agenda as being important for future generations, she is worried more about helping today’s children recover from the learning loss during the COVID epidemic.
“His budget would keep K-12 spending below 44% of the general fund, which is embarrassing when providing for schools is state government’s paramount duty, and far below the 50%-plus appropriated from the general fund when Republicans last led the Senate,” Wilson says.
“As if the cost of living wasn’t high enough already, it’s going to get worse for Washington families in 2023 because of policies the governor has supported in past years that are coming due. There will be higher prices for gas and diesel, perhaps as much as 46 cents a gallon, and the unpopular payroll tax that was deferred until after the November election. Some also must begin paying the capital-gains income tax, even though it was declared unconstitutional – they can thank the state attorney general for that. It seems irresponsible at best for the governor to ‘book’ 1.4 billion dollars of revenue from the income tax in his proposal, and pretend the state Supreme Court has already overturned the lower-court decision.
While the governor would increase spending by almost 10-percent, Wilson says he wouldn’t provide any meaningful tax relief.
Meanwhile, Democrats are supportive of the budget proposal. Senator Christine Rolfes (D-Bainbridge Island) of the Senate Ways & Means Committee calls it a ‘solid roadmap’ to address the State’s top needs.
“The governor has delivered a solid roadmap that identifies and prioritizes the top needs of our state. I’m extremely encouraged by his focus on behavioral health investments, especially his commitment to growing our workforce and building new facilities,” Rolfes says. “Legislators are deeply concerned about the lack of affordable housing in communities across Washington, and I appreciate the governor’s commitment to address this urgent need.”
“I also look forward to continuing our work to address the climate crisis. The governor has offered several good ideas that will reduce pollution, make our communities safer, and create a prosperous clean energy economy,” Rolfes adds. “We will look at all of the governor’s priorities closely as the Legislature works together to craft a balanced budget that will improve lives across our state.”
AWB Statement on Governor’s Proposed 2023-25 State Budget:
Kris Johnson, president of the Association of Washington Business, issued the following statement on Gov. Jay Inslee’s 2023-25 Washington state budget proposals:
“We agree with the governor that new taxes aren’t needed to balance the budget, but we are concerned his proposal would drain reserves at a time of tremendous uncertainty and would continue the trend of significant spending increases. After years of strong budget growth, it’s time for lawmakers to make do with the considerable resources they have, and to make smart choices that will prepare the state for a possible downturn in the economy. Warning signs are flashing, and employers are growing increasingly concerned about the possibility of a recession. The 2023 legislative session will be a time for lawmakers to take these concerns seriously and to act as champions for the economy.
“Being champions for the economy means taking steps now to ensure the state has enough affordable electricity to power our homes and manufacturing facilities in the years ahead, so we’re encouraged the governor’s policy proposals include siting and permitting of energy facilities. Expanding Washington’s baseload energy production must be priority No. 1 to ensure the state maintains the economic advantage that clean, reliable and low-cost energy has long provided. Our challenge is to retain the existing energy resources that have given Washington a competitive advantage for decades, while simultaneously building, innovating and inventing the energy future.
“Being champions for the economy means also addressing the significant housing shortage facing our state, so we’re likewise encouraged to see the governor proposing action on this front. The governor’s proposal for a voter referendum to raise $4 billion in bonds would represent a sizable investment in new housing, but as with anything of this magnitude, much will depend on the details. To make meaningful headway on the problem, the state must make it easier to permit and build new homes while lowering the cost. We need more housing of every type and in every part of the state.
“Nearly three years after the start of the pandemic, this remains a volatile and challenging economy. We understand the governor’s proposed budget and policy agenda is a starting point and we look forward to working together with the governor and lawmakers to tackle the challenges our state is facing.”
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