Rep. Stephanie McClintock: It’s time to right-size WA
Our state’s affordability crisis is crushing its residents and employers.
Washington ranks as one of the most expensive states to live in, with some of the highest costs for gas, groceries, housing, child care, and property taxes. Unfortunately, with new taxes passed by the Democrats – who hold the majority in the Legislature – it’s only going to get worse.
Driving these high costs and policies is the explosion of state spending over the last decade. For context, the 2015-17 operating budget spent $38.5 billion. The 2025-27 budget, passed this year, will spend $77.8 billion.
In his inaugural address, Gov. Bob Ferguson declared, “Trust me on this – I am taking that same laser focus on affordability to the Governor’s office.” He also said, “We should have an open and honest dialogue about how we arrived at this (budget) shortfall and what lessons we must learn.” I applauded him for these comments and was hopeful that we could find common ground on being fiscally prudent.
Four months later, Gov. Ferguson signed the largest tax increase in state history and an unsustainable operating budget.
When the Legislature has confronted budget deficits in the past, the majority party has turned to new taxes. They continued that approach this year, passing more than $9 billion in new taxes over the next four years.
One bill, which went into effect on Oct. 1, adds a retail sales tax to new business activities – including advertising services, live presentations, information technology services, temporary staffing services, and more. It has caused confusion for businesses and will result in more costs to consumers.
You don’t need me to tell you that life is unaffordable because you are living it. But what you may not know is how hostile our state is to its employers.
Employers provide jobs, services, and goods, as well as the tax bases that are foundational to our communities. When businesses close, jobs are lost, communities decay, and the tax collections that local and state governments rely on to fund critical services dry up.
In CNBC’s America’s Top States for Business report, Washington ranked 48th for cost of doing business and 41st in business friendliness. We must improve these rankings.
In a recent statement, two of my House Republican colleagues said, “Make no mistake: the greatest threat to our state’s economy isn’t Washington, D.C. – it’s Olympia.” They’re right. This is also what I hear in my role as ranking member of the House Consumer Protection and Business Committee and as an employee of a local business.
We are now seeing employers leave urban communities. A Fred Meyer store is closing in Seattle, citing “a steady rise in theft and a challenging regulatory environment.” I am hearing this is also a concern here in Clark County. The response from their Seattle-area state lawmakers? While they talked about the possibility of incentives to prevent grocery stores from closing, one also threatened a new vacancy tax if a grocery store or pharmacy were to leave.
Think about that. Policies from Olympia have led to more crime and a challenging regulatory environment. The majority party’s response: a new tax on your way out.
What business would want to start or relocate here when they see this type of mentality from policymakers?
Things have to change.
First, we need to right-size state government. This is not just a Republican goal. Earlier this year, Gov. Ferguson said, “To protect our values in this challenging budget environment, we must be willing to right-size government and prioritize our spending.”
Let’s do it. The Senate Republicans showed how it could be done with their $ave Washington operating budget. The House Republicans also introduced a package of budget-reform bills to ensure responsible and sustainable state spending. These proposals weren’t even given a hearing in the Democrat-controlled committees.
In fact, Republicans have put several solutions on the table for our state’s crises.
Secondly, we need Gov. Ferguson to keep his promises. In January, he said, “Our mission must be to speed up government, improve customer service, and center the people in every decision we make.”
Again, let’s do it. And when he says, “people,” that should include business owners and entrepreneurs.
Republicans stand ready to work with Democrats to address our state’s problems. Washington residents and employers cannot afford business as usual in Olympia.
Rep. Stephanie McClintock, R-Vancouver, represents Washington’s 18th Legislative District.
As printed in The Columbian
