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Dear Friends and Neighbors,
It’s great to be back home in Southwest Washington after spending the last three and a half months in Olympia. As with any legislative session, there were pros and cons, with some positive policies making it to the governor’s desk. But unfortunately, this session will be remembered for the largest tax increase in Washington state history.
Despite many Washington businesses and residents speaking out against taxes, and many of you taking part in my survey on this issue, the majority party chose to ignore that input, and we will all feel the impact. It’s time for government to stop spending beyond its means. We need to help struggling Washingtonians who are barely getting by, as these new taxes will hurt those who can least afford them. Even the media agrees.
- Editorial: Ruling Democrats, your tax hikes come at a cost to all WA residents – The Seattle Times
- Editorial: Gov. Ferguson, scrub the budget carefully – The Seattle Times
- Editorial: Ferguson weighs risky approach to bottom line – The Columbian
I’ll have more on the budget and new taxes later in this update, but first, let’s focus on some positive news.
My Student Labor Bill Becomes Law
The governor recently signed my House Bill 1121, which received unanimous approval in the House and overwhelming support in the Senate. It will allow 16- or 17-year-olds to work the same number and frequency of hours during the school year as allowed during summer, school vacations, or holidays.
This bill encourages kids to pursue careers in the trades, which will help fill a need in Washington’s workforce. It also allows kids to get work experience for their future careers and be a motivating force in helping them think creatively and independently. That is a key factor in helping them become a successful part of the workforce after they graduate. The bill goes into effect on July 1, 2026.
Capital Budget Victories for the 18th District
Another good thing from this session is the capital budget, which includes some big wins for Southwest Washington. This budget is primarily funded through bond sales and focuses on long-term physical investments such as public schools, water systems, and community facilities. The final budget spends $7.6 billion, with more than $6.3 million coming to the 18th District.
As the assistant ranking Republican on the House Capital Budget Committee, I secured these funds. I also worked to secure funding for important projects located in the neighboring 49th and 20th districts, including $1.5 million for the first renovation phase of the public safety complex/jail used by all of Southwest Washington. The original capital budget proposal included $3.5 million for the criminal justice Southwest Regional Training Facility in the 20th District, but the current facility being used in Vancouver is meeting the needs of law enforcement.
These projects are important to improve public safety in Southwest Washington. They aren’t physically located in our district, but they will affect the people who live in the 18th. I will continue working to get funding for the criminal justice Southwest Regional Training Facility in future budgets.
Funding for projects in the 18th District includes:
- $3 million for upgrades to the Washington State University-Vancouver Central Chiller Plant.
- $1.5 million for Remy Park in Battle Ground.
- $515,000 for the Battle Ground downtown revitalization design.
- $278,000 for a culinary upgrade to Battle Ground Public Schools.
- $383,000 for stormwater mitigation at the Tukes Work Center.
- $318,000 each for the Family Forest Fish Passage Programs at Gee Creek and East Fork Lewis River.
Majority Party Passes Billions in New Taxes
Earlier this year, many of you participated in a tax survey I shared and overwhelmingly said “NO” to new taxes. Unfortunately, the majority party didn’t listen. Democrats in the House and Senate released comprehensive new tax proposals that ranged from $15 to $20 billion. Fortunately, the governor rejected those proposals.
However, they still passed more than $9.5 billion in new and increased taxes to fund their final budget. This increase comes even though the state doesn’t have a revenue problem. Our tax dollars continue to increase year over year. The problem is state government keeps spending more than it has. Here is what six of the most significant tax bills they passed will do:
- House Bill 2049 | Property tax increase. A 55% increase in local school district property tax levy authority.
- House Bill 2081 | Business and occupation (B&O) tax increases. B&O tax increases and additional punitive surcharges on certain industries.
- House Bill 2077 | Tesla tax. Excise taxes on the sale or banking of zero-emission credits held by Tesla.
- Senate Bill 5814 | Sales tax expansion. Applies sales tax to critical business services, including temporary staffing, digital services, and security services, and applies tobacco taxes to nicotine products used for smoking cessation.
- Senate Bill 5813 | Capital gains income and estate taxes. Increases tax rates for capital gains income and estate taxes.
- Senate Bill 5794 | Eliminating tax incentives. Eliminates tax incentives for gold and bullion, low-income energy credits, and storage spaces.
Record State Spending
The majority claims they need those new taxes to fund their new operating budget, which increases state spending to almost $78 billion, representing a $6 billion increase over current state spending levels. This represents an 8% increase in the size of the operating budget and continues a troubling trend of overspending by the majority party. I do not support this budget or the new taxes to fund it. I voted against them.
Transportation Budget Comes with Additional Taxes
In addition to the new taxes in the operating budget, the transportation budget also relies on new taxes that will impact all Washingtonians. This budget will spend $15.5 billion, including $1 billion in Climate Commitment Act funding and $3.2 billion in new revenue. It does not include the House proposal to have $1 billion in reserves over six years. The largest investments include: WSDOT ($11.8 billion); Washington State Ferries ($1.7 billion); Washington State Patrol ($758 million); public transportation ($753 million); and the Department of Licensing ($446 million).
This budget includes more than $60 million for projects that affect the 18thDistrict, including $28.8 million going toward the I-5/179th Interchange, $11.7 million for the C-TRAN – Highway 99 BRT project, and $870,000 for the SR 502 Main Street widening project. The bad news is, the budget relies on $3.2 billion in new taxes and fees, including a $.06 per mile gas tax increase with a yearly inflation increase.
Thank You, and Please Stay in Touch
I will continue working throughout the coming months to get your input and feedback. I look forward to meeting with you throughout our district during the interim. Please continue reaching out. It’s an honor to serve you.
Sincerely,
Stephanie McClintock
