Budget, voter initiatives and artificial intelligence: Lawmakers ready for upcoming legislative session

OLYMPIA – When the Legislature gavels into session at noon Monday, lawmakers will have 60 days to address the most pressing issues facing the state.

Chief among them will be balancing the budget, which has an estimated $2.3 billion shortfall through June 2027. Other priorities legislators hope to tackle include protecting core services amid reductions in federal funding to the state, addressing the state’s aging infrastructure and improving other state programs.

Legislators also will likely have to address two voter initiatives by either adopting them or letting voters decide, though it appears the proposals will ultimately go before voters in the fall.

On Tuesday, Gov. Bob Ferguson will give the annual State of the State address, where he outlines some of the top challenges Washington is facing, and what he wants to do to fix them.

While lawmakers will have little time to waste during the short session, legislative leaders and Ferguson gathered in Olympia on Friday morning to preview what they hope to achieve over the next two months.

Here are four takeaways from Friday’s briefing:

The budget and a new ‘millionaires’ tax’

The governor has already weighed in on how he would like the state to close an estimated $2.3 billion budget deficit in the current budget cycle. Last month, Ferguson proposed approximately $800 million in spending cuts, closing tax certain preferences, shifting revenue from other state accounts and taking $1 billion out of the state’s rainy day fund.

The attention now turns to legislators, who will now have the opportunity to craft their own budgets.

“My first reaction was that I believe it’s clear the difficult choices that are in front of us, and I think the governor confronted those initially,” said state Rep. Timm Ormsby, D-Spokane, chair of the house appropriations committee.

Meanwhile, Rep. Travis Couture, R-Allyn, ranking member on the appropriations committee, said the proposal is “wholly unserious” and that the state has a “spending addiction.”

“We don’t have a revenue problem, we have a spending problem,” Couture said. “We have never had more revenue in the state of Washington than we do right at this very moment, and it does continue to grow, although the growth has slowed.”

Ferguson also backed a 9.9% income tax on those who make more than $1 million in income a year. If approved, Ferguson said the money would likely not be available until 2029. When implemented, the tax could bring in around $3 billion a year to the state.

Democratic leadership appear open to the idea.

“We’ll see if it’s feasible to pass the millionaires’ tax this session or not. It’s a proposal that’s obviously been talked about for a few months, it seems to have momentum,” said Sen. June Robinson, D-Everett, chair of the Senate Ways and Means Committee.

Republicans, meanwhile, contend that Democrats can not be trusted, and that the million -dollar threshold will eventually be lowered, despite assurances from Ferguson.

“I don’t think any of us should ever call this a millionaire tax again, because we know where this is headed. We should call this a first -slice -of -the -pie tax,” said Sen. Chris Gildon, R-Puyallup, ranking member on the Ways and Means Committee. “Because this is just the first slice of the pie. It is going to expand to everyone eventually.”

Governor requests legislation

Banning false identification as a law enforcement officer. Establishing an account within the state treasurer’s office for the yearly donation by the Ballmer Group to fund 10,000 more spots for a free preschool program. Regulating artificial intelligence chatbots to filter sexually explicit content and requiring protocols to detect self-harm or suicidal ideation.

In addition to his budget proposal, the governor has requested lawmakers pass these bills and others during the upcoming session.

“Going back to my AG days, I’ve had an interest in issues, particularly that impact minors,” Ferguson, the former state attorney general, said of his request to regulate chatbots. “And I think it’s well known, and well documented through the media, on those chatbots, and what happens with young people committing suicide or AI leading people down that path, which is deeply, deeply concerning.”

Ferguson said it’s becoming harder and harder to determine what images are artificial intelligence.

“It’s maddening that we live in a world where you don’t know that,” Ferguson said. “So, I think we need to have that conversation, and get some legislation that adds additional protections for minors, in particular, but for all Washingtonians.”

Voter initiatives

Last week, organizers turned in more than 415,000 signatures each for two initiatives that would bar transgender athletes from girls’ sports and repeal changes lawmakers made to a previous parental rights initiative. The secretary of state’s office must now verify the initiatives received enough valid signatures before they can be certified and submitted to the Legislature.

If that happens, the Legislature can either choose to adopt the initiatives or send them to the November ballot for a vote. Faced with six initiatives to the Legislature during the 2024 session, Democrats opted to hold hearings, and pass three initiatives, while sending three others to the general election ballot.

This time around, it appears to be little appetite to consider the initiatives.

Speaker of the House Laurie Jinkins, D-Tacoma, and Senate Majority Leader Jaimie Pedersen, D-Seattle, both said on Friday they do not plan to hold hearings.

“I am certain that we will not be passing either of those initiatives, and I think it’s unlikely that we will be hearing them,” Pedersen said. “I think that will be up to the voters to decide.”

Republicans, meanwhile, contend that lawmakers should at least hold hearings where the initiatives would be discussed.

“I think we owe it to the voters and the people of Washington and the 400,000 plus individuals who signed these initiatives to consider them,” said Rep. Drew Stokesbary, R-Auburn, and house minority leader.

Response to the federal government

While legislators certainly have their work cut out for them in the months ahead to address issues in the state capitol, they must also address the impacts of the decisions made in the nation’s capitol.

“I think President Trump’s tariffs are causing much higher inflation in the state. They’re causing a lot of uncertainty because they go back and forth daily so there’s no way for our business community to really plan for or around them,” Jinkins said. “And they’re causing greater prices for our families here in Washington state.”

According to the governor’s office, more than $15 billion in federal funding is at risk, while more than $165 million in costs have been shifted from the federal government’s responsibility to the state.

Republicans believe, though, that much of the focus should remain on Olympia.

“Washington state House Republicans are going to be focused on this Washington far more than the other Washington,” said Rep. Drew Stokesbary, house minority leader. “We ran to represent our constituents in this Washington, not the other Washington. This Washington has problems that need solving.”

The biggest issue, Stokesbary said, is the increasing unaffordability many families face, which he attributed to state policy rather than the federal government. Stokesbary proposed reducing the sales tax on prepared foods and groceries to “provide relief to ordinary Washingtonians.”