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Friends and Neighbors,
The 2026 legislative session ended at 8:25 p.m. on March 12 after some late-day drama. When the House was considering its last bill of the year, the supplemental capital budget, the fire alarm in the Capitol Building went off and delayed our work. I was grateful there was no emergency and happy to vote for this budget when we returned to the House floor as it was a win. It will do great things across our state, including for communities in the 20th District.
Like every legislative session, there were wins and losses. Most bills pass the House and Senate with strong bipartisan, if not unanimous, support, while others pass but with bipartisan opposition. And while every piece of legislation means something to someone, some can be damaging to others.
Legislative sessions are often defined by what happens in the operating budget and with legislation that has the biggest ramifications for our state. I am afraid the majority-party Democrats pushed through some risky policies that will take our state in the wrong direction.
Supplemental operating budget
First, the supplemental operating budget. After passing the largest tax increase in state history last year, state lawmakers entered the 60-day legislative session facing yet another budget shortfall. The majority party’s response? More spending and new taxes. I voted against this budget on the last day of session.
The supplemental operating budget will spend an additional $2.3 billion and assumes $2.7 billion in tax increases over the four-year outlook. This, after budget writers spent $6 billion more last year and increased taxes by more than $9 billion. It is risky because it assumes a new state income tax (more on that later) and raids LEOFF Plan 1 pension funds (a bill I voted against). Both actions will likely be challenged in court.
While this plan increases spending, it also slashes $250 million from K-12 education by targeting rural schools and early learning programs. It also cuts Medicaid by $202 million on top of the $780 million cut last year. Supporting our schools and most vulnerable populations should be priorities for our state, not targets for cuts.
Lastly, this budget is not sustainable — even if parts of it withstand legal challenges. In addition to relying on several one-time fund transfers, it will spend $4.9 billion more than expected tax collections. This approach is irresponsible and ultimately Washingtonians and employers will pay the price. When family budgets are in a hole, they know the best approach is to stop digging. The Legislature should have taken this approach as well.
State income tax
Second, by now you have probably heard that our state has a new income tax — despite the fact Washingtonians have told us for decades they don’t want one. Senate Bill 6346 passed 51-46 after a nonstop, 24-hour floor debate. I voted against it and, as ranking member of the House Finance Committee, led many parts of the debates both in committee and on the House floor. You can watch my floor speech on final passage here.
While the legislation only applies to high earners now and promises some minor tax relief in other areas, I believe the threshold will be lowered to reach more people in the upcoming years, and the minor tax relief could be changed by future legislatures. House Republicans offered 51 amendments to the bill. House Democrats rejected every amendment that would have safeguarded lower-income earners from ever having to pay this tax and would have allowed the people to decide the issue directly, to name a couple.
Most people believe this state income tax is clearly unconstitutional. If our state Supreme Court is fair and impartial, it will arrive at the same conclusion. If not, and this new tax stands, it will be devastating to our economy — as we are already seeing signs of capital flight. This policy will be the last straw for business owners, entrepreneurs, and investors in our state. But perhaps more importantly, new employers will not want to start or relocate here. And, it will make budgeting harder — not easier — due to reliance on a very volatile income tax.
If you want more context on this debate and policy, the story below offers both and has no paywall.
Supplemental transportation budget
The good news about our supplemental transportation budget is that it will spend $16.7 billion, including an additional $340 million for preservation and maintenance. This is something I have been advocating for years. However, some of my House Republican colleagues and I differ on the best way to pay for it.
The bad news is this plan layers on more debt, including $800 million in new general obligation bonds. I voted no on this budget because of this, which was not a part of a previous version of the budget that I supported. New debt, on top of new taxes and fees passed last year, without reforming regulatory mandates and policies that drive up project costs, makes our transportation system even more expensive.
Meanwhile, people in our state are paying some of the highest gas and diesel prices in the nation because of the carbon tax and state gas tax — straining the budgets of both families and businesses. This is a part of the affordability crisis in our state that the Legislature has failed to address.
Supplemental capital budget
On a positive note, the supplemental capital budget — often called our state’s construction budget — was again a bipartisan process and resulted in unanimous support in the Legislature. The plan will spend another $890 million and make critical investments in K-12 school construction, housing, flood response, and water infrastructure across our state.
I am also happy to report that my seatmates and I secured funding for several local projects in the 20th District. You can find all of these projects in the news release I sent out with Rep. Peter Abbarno. District-specific projects can be found at this website.
The months ahead
While the 2026 legislative session is over and the next one doesn’t start until January 2027, please remember that I am your state representative year-round. I will be participating in post-session forums, meeting with groups and individuals in our communities, and continuing my work on House committees, the Economic and Revenue Forecast Council, Joint Legislative Audit and Review Committee, and others.
Most importantly, I am here to listen, answer questions, and assist you with state government if I can. Please always feel free to contact me by email or phone. I look forward to hearing from you. All of this is to work for better outcomes for Southwest Washington in future legislative sessions.
Please also be on the lookout for information on a town hall event I will be hosting with my 20th District seatmates in the coming weeks.
Sincerely,
Ed Orcutt
