WSNA in Olympia — 2025 Legislative Session

Regular legislative activity resumed this week, with committees reviewing and debating bills that have advanced from the opposite chamber. These hearings are part of the lead up to the April 2nd deadline for bills to be passed out of policy committees.

Budget writers received bad news on Tuesday with the latest revenue forecast. In the upcoming two-year budget beginning July 1, projections indicate a decline of $479 million, bringing the total to just under $71 billion. For the 2027-2029 biennium, the latest forecast anticipates a $420 million decrease, with revenue expected to reach $76.4 billion. Washington’s chief economist, Dave Reich, noted that the state’s revenue collections have yet to fully stabilize since the pandemic.

Next week, majority Democrats will release their proposed budgets on Monday and vote them out of committee on Thursday. The budgets will then move to the floor, with Senate action likely on Saturday, March 29th, and House floor action likely on Monday, March 31st. More on budget details next week.

On Thursday, the Senate Democrats rolled out their revenue proposal that provides a balanced approach to the budget shortfall. Their proposal includes responsible, targeted savings and efficiencies as well as new progressive revenue streams. Washington is facing an extreme budget shortfall of $10-12 billion over the next four years due to inflation, increased caseloads for services, and an outdated, upside-down tax code. Our state over relies on sales tax as a source of revenue, which fluctuates with consumer spending, making it unpredictable even if our state’s economy is strong.

Senate Majority Leader Jamie Pedersen shared, “This proposal reflects what we’ve heard from our communities: the wealthiest few should share more of the responsibility of investing in public schools and the services people need. People across the political spectrum – Democrats, independents, and even Republicans – express their frustration with a tax system that is rigged against working- and middle-class families. This transformative proposal will rebalance our tax code and provide ample funding for public schools, public safety, and the needs of the people of our state.”

The Senate Democrats’ proposal contains five key elements that aims to alleviate some of the financial burden on working families and asks the extraordinarily wealthy and the biggest corporations to pay a more appropriate share. The major reforms to our nearly century-old tax code will properly fund world-class schools, health care, infrastructure, public safety, and the services Washingtonians rely on.

• SB 5795: Cutting the Regressive Sales Tax – as cost of living rises, Washington’s current regressive tax code puts an additional strain on households already struggling to meet their basic needs. This proposal reduces this disproportionate impact on low- and middle-income households with a half-point sales tax reduction, from 6.5% to 6% – a decrease in revenue of approximately $1.3 billion per year.
• SB 5797: Financial Intangibles Tax – a tax of $10 on every $1,000 of assessed value of certain financial assets (specifically stocks, bonds, exchange-traded funds, and mutual funds) held by individuals with more than $50 million of these assets, paid by about 4,300 wealthy individuals. It generates almost $4 billion per year starting in fiscal year 2027 for public schools, helping the state uphold its paramount duty with new, increased funding for special education services and the growing daily operating costs of running our public schools.
• SB 5796: Removing the Cap on Employer Payroll Taxes – a 5% tax on large employers on the amount of payroll expenses above the Social Security threshold of $176,100 per year. This tax is limited only to companies with $7 million or more in payroll expenses which is about 5,289 companies. The proposal includes a full credit for businesses already paying that tax. It would raise about $2.3 billion per year once fully implemented, going to public schools, health care, and other programs that protect the safety and wellbeing of the public and provide basic needs assistance for seniors and those with developmental disabilities.
• SB 5794: Repealing Ineffective & Obsolete Tax Preferences - repealing 20 tax exemptions where the public policy objective was not met, it is unclear whether the policy objective was met, or the exemption is legally obsolete, according to nonpartisan auditors at the Joint Legislative Audit & Review Committee. Outdated tax preferences include in-state hauling, gold bullion, prescription drug wholesalers, and more. This generates more than $1 billion over the full four-year budget cycle for public schools, health care, and social services.
• SB 5798: Allowing Property Tax to Grow by Population and Inflation – raising the property tax growth limit for the state’s common schools levy and for cities and counties, as well as special purpose districts, from the current 1% cap to the combined rate of population growth plus inflation. Local governments have the option to take a lower growth rate if they choose. Instead of being tied to an arbitrary number, it would allow the growth limit to reflect the actual cost of providing public safety and related services. The proposal completely exempts participants in the “Property Tax Exemption for Senior Citizens and People with Disabilities” program from paying the state property tax, giving a tax reduction for some of our most vulnerable community members. The state property tax is dedicated to public schools, with about $779 million in additional funding over the full four-year budget cycle, while increased funding in cities and counties would go to public safety, criminal justice, and community protection.

House Democrats released their revenue proposal on Friday, which includes three key elements.

• Financial Intangible Assets Tax– sponsored by Rep. April Berg (D-44), imposes a property tax of $8 on every $1000 of assessed value on certain financial intangible assets, such as stocks, bonds, mutual funds, and index funds, with the first $50 million in assessed value exempt from the tax. Other exemptions include pensions, retirement accounts, and education savings accounts. The Department of Revenue estimates around 4,300 Washingtonians would pay the tax, generating approximately $2 billion per year, beginning in fiscal year 2027, which will be dedicated to the Education Legacy Trust Account.
• Increasing State and Local Flexibility to Fund Schools and Public Safety– sponsored by Rep. Steve Bergquist (D-11), would modify the state and local property tax authority and adjust the school funding formula. The bill maintains the 1 percent cap on property tax growth but allows for increases based on inflation and population changes, not to exceed 3 percent. The bill also adjusts levy equalization methods. The Department of Revenue estimates the change would increase funding for state investment in K-12 schools by $50 million in fiscal year 2026 and $150 million in fiscal year 2027.
• Surcharge on High-Grossing Corporations and Financial Institutions– sponsored by Majority Leader Rep. Joe Fitzgibbon (D-34), would impose a 1% Business & Occupation (B&O) tax surcharge on businesses with taxable income over $250 million. This surcharge applies to approximately 400 businesses statewide. The bill also includes an increase to the surcharge on specified financial institutions (approximately 200) with annual net income of $1 billion or more from 1.2% to 1.9%. Under this proposal, Washington would generate nearly $600 million in fiscal year 2026 and nearly $2 billion in fiscal year 2027

HB 1162 had a public hearing in the Senate Labor & Commerce Committee on Tuesday. Brad Rathke, a nurse at Virginia Mason, shared his chilling WPV experience of being stabbed in the face with a metal butter knife by a patient and having to return to work after his ER visit due to short staffing. Personal stories and real-life experiences move legislators to action.

HB 1162 was voted out of the committee on Friday with unanimous support! It will now be referred to the Senate Ways & Means Committee due to the fiscal note.

SB 5041 had a public hearing in the House Labor & Workplace Standards Committee on Tuesday. WSLC President April Sims testified that the bill would protect workers against financial hardship while bargaining for a contract or better working conditions. The bill also aims to encourage employers to negotiate rather than using workers’ financial hardship as a bargaining tool.

The bill was voted out of committee on Friday and will head to the House Appropriations committee to examine the bill’s fiscal impact to the state’s budget.

SB 5041 would allow striking or lockout workers to access UI for up to 12 weeks, leveling the playing field between workers and employers. The bill is effective for 10 years – January 1, 2026 through December 31, 2035.

HB 1430 is scheduled for a public hearing in the Senate Health & Long-Term Care Committee on Tuesday, March 25 at 10:30am. Show your public support by signing in “PRO” before 9:30am on March 25. Make sure to leave the “organization” field blank.

HB 1430 requires commercial insurance plans to reimburse ARNP and PA care at the same rate as physicians for only primary care and behavioral health services.

Events/Rallies

• Wednesday, April 2 time TBD: Health Care Rally at Washington State Capitol in Olympia. No cuts to healthcare rally, stay tuned for more details.

Upcoming Legislative Milestones

• March 24 – State Senate Majority Budget Release and Public Hearing
• March 24 – State House Majority Budget Release and Public Hearing TBD
• All of April – State Budget conferencing in the legislature
• April 2 - State Policy Committee Cutoff (Opposite House)
• April 8 - State Fiscal Committee Cutoff (Opposite House)
• April 14 to April 25 – Federal Senate recess
• April 16 - State Opposite House Cutoff
• TBD – State Final Budget Released
• April 27 – End of State Legislative session in Olympia (unless extended into a special session, TBD)
• September 30 – Deadline for Federal Budget

The legislature considers hundreds of bills outside our own legislative priorities. Below is a list of bills we’re watching as they move through the legislative process that may impact members. Click on any of the links to learn more about each bill and where it is in the legislative process.

NEW! SB 5794, adopting recommendations from the tax preference performance review process, eliminating obsolete tax preferences, clarifying legislative intent, and addressing changes in constitutional law

NEW! SB 5795, reducing the state sales and use tax rate

NEW! SB 5796, enacting an excise tax on large employers on the amount of payroll expenses above the social security wage threshold to fund programs and services to benefit Washingtonians

NEW! SB 5797, enacting a tax on stocks, bonds, and other financial intangible assets for the benefit of public schools

NEW! SB 5798, concerning property tax reform

HB 1879, concerning meal and rest breaks for hospital workers

HB 1784, concerning medical assistants

SB 5101, expanding access to leave and safety accommodations to include workers who are victims of hate crimes or bias incidents

HB 1334, modifying the annual regular property tax revenue growth limit

SB 5503, concerning public employee collective bargaining processes

SB 5240, concerning anaphylaxis medication in schools

SB 5493, concerning hospital price transparency

HB 1531, preserving the ability of public officials to address communicable diseases

HB 1308, concerning access to personnel recordsHB 1022, creating a home for heroes program.

HB 1213, expanding protections for workers in the state paid family and medical leave

HB 1069, allowing bargaining over contributions for certain supplemental retirement benefits

HB 1686, creating a health care entity registry

HB 1622, allowing bargaining over matters related to the use of artificial intelligence

HB 1416, increasing tobacco and vapor products taxes

How does a bill become a law?

Washington State Labor Council’s 2025 Legislative Priorities

On February 25th, the U.S. House of Representatives passed a budget proposal that outlines nearly $880 billion in cuts to Medicaid and other healthcare programs.

Take action and tell your Members of Congress to Say NO to Medicaid cuts!

WSNA President Justin Gill joined U.S. Senator Patty Murray, U.S. Representative Emily Randall, State Senator Marcus Riccelli, and other healthcare providers and patients to bring awareness on how devastating these cuts will be for Washingtonians and Americans.

“For over two decades, nurses have been ranked the most trusted profession, and that trust is built on unwavering advocacy for our patients. We call on lawmakers and the public to join us in opposing these cruel, shortsighted cuts that will harm millions of Washingtonians and Americans. Medicaid is a lifeline for so many patients. It ensures that expectant parents are able to receive essential care, that seniors can access long-term care support, that working families can stay healthy while striving to make ends meet. Cutting Medicaid will further destabilize our healthcare system by forcing clinics and hospitals to close,” Justin shared.

More than 1.8 million Washingtonians are enrolled in Apple Health, our state’s Medicaid program. Tell your member of Congress to support Medicaid by sharing how important it is to your community and healthcare access! You will be directed to AFT’s action alert, where you first fill out your information, and then the letter you send to your Member of Congress which can be edited before submittal if you choose to do so.

Learn more about Medicaid here