Home  |  About Joshua  |  News & Media  |  Email Updates  |  The Ledger  |  Contact

February 28, 2025

Dear Friends and Neighbors,

We’ve reached a key point in the 2025 legislative session. Today marks fiscal cutoff, meaning any bill that has a financial impact on the state’s budgets that hasn’t passed out of its respective fiscal committee (Finance, Capital Budget, Transportation, or Appropriations) is considered dead for the session.

Next week, we begin 10 straight days of floor debate, voting on hundreds of bills before the House of Origin deadline on March 12.

A front-row seat to the budget crisis—and the majority party’s lack of solutions

As one of the assistant ranking members on the House Appropriations Committee, I’ve had a front-row seat to the decisions—good and bad—that will shape our state’s financial future.

This week, we’ve been voting on all the bills that have a fiscal impact on the budget. With the state facing a projected shortfall of up to $10-$12 billion, you’d think we’d be focused on reining in wasteful spending and making responsible choices.

Let’s be clear: this shortfall is not due to a drop in state revenue. In fact, Washington is expected to collect $5 billion more in tax revenue this biennium than in the previous one, with total tax collections up 34% since 2019. So, why are we still facing a massive deficit?

This is how we got here:

❌ Spending more than collect: Every budget since 2019 has spent more than the state brought in, leading to a growing structural deficit. The 2023-25 budget alone overspent by $4.1 billion.

❌ Overestimating revenue: State budget writers have repeatedly relied on overly optimistic revenue assumptions that didn’t materialize. Last biennium, they spent over $1.1 billion based on “ghost revenue” that was never actually collected.

❌ Delaying costs instead of budgeting responsibly: Expensive new programs were passed in 2021 but not fully funded until 2025-26, creating long-term liabilities.

❌ Raiding the rainy-day fund for ongoing expenses: Instead of using surplus funds for one-time costs, the majority party drained $2.3 billion from the state’s emergency savings to fund new permanent programs.

❌ Failing to track program performance: Many state programs are funded indefinitely without reviewing whether they are actually working. A “fund it and forget it” mentality that wastes taxpayer dollars.

❌ Spending millions on political earmarks: Pet projects with little oversight have ballooned in cost, adding unnecessary burdens to an already strained budget.

We can’t tax our way out of this problem. Instead of asking working families to pay more, we need structural budget reforms, including:

✅ Spending within our means—cutting wasteful programs and reducing overspending.

✅ Zero-based budgeting—requiring agencies to justify every dollar they spend.

✅ Performance-based funding—eliminating ineffective programs that waste taxpayer money.

✅ Prioritizing essential services—funding education, healthcare, and public safety first.

✅ Restoring the spending limit—capping how much the government can grow.

We don’t have a revenue problem. We have a spending problem. I’ll keep fighting for real budget accountability and against the tax increases that hurt working families and those who can least afford them.

Bad bills we’re fighting against

Unfortunately, rather than focusing on fixing the budget crisis, the majority party continues to push costly and harmful policies. Here are just a few of the bad bills still moving forward:

• House Bill 1921 – Per-mile tax on drivers: This would implement a 2.6-cent-per-mile road usage charge on top of the existing gas tax, essentially double-taxing drivers.
• House Bill 1015 – Home energy audits: This forces home sellers to obtain an energy performance report before selling, adding unnecessary costs.
• House Bill 1125 – Soft-on-crime sentencing reductions: This would allow judges to resentence convicted criminals with lighter penalties.
• House Bill 1217 – Rent control: This would enact a 7% cap on annual rent increases, which has been proven to worsen housing shortages.
• House Bill 1319 – Wealth tax: This creates a 1% tax on intangible assets over $100 million, which could drive investment out of Washington state.
• House Bill 1320 – Business and occupation (B&O) tax increase: This imposed a 10% increase in business taxes, further burdening small businesses.
• House Bill 1296 – Undermining parental rights: This weakens Initiative 2081, reducing parental involvement in education and stripping away transparency.
• House Bill 1334 – Property tax increase: This undoes voter-approved property tax caps, allowing governments to raise taxes at a much faster rate.
• House Bill 1380 – Encampments lawsuit risk: This restricts local governments from regulating public encampments, opening them up to costly lawsuits.
• House Bill 1386 – Gun ownership tax: This adds an 11% excise tax on firearms, parts, and ammunition, unfairly targeting law-abiding gun owners.
• House Bill 1409 – Expanding costly clean fuel mandates: This accelerates carbon reduction targets. Increasing fuel prices and energy costs for consumers.
• House Bill 1458 – Construction cost hikes: This imposes strict carbon reporting mandates, driving up housing and commercial building costs.
• House Bill 1480 – Real estate tax hike: This allows counties to impose a new 0.5% real estate excise tax (REET), making homeownership more expensive.
• House Bill 1531 – Public health power grab: This strips local governments of decision-making power on health policies, handing broad authority to the state.
• House Bill 1178 – Reduced sentences, increased risk: This eliminates sentencing enhancements for drug and gang-related crimes, weakening public safety measures.

These bills would make our communities more expensive, less safe, and more burdensome for families and businesses. We’re fighting against them every step of the way.

Help you stop bad bills

We need your voice to help stop these harmful policies. House Republicans have launched a new Stop Bad Bills website, where you can learn more, take surveys, share your story, and stay involved. Your input can make a difference. Together, we can fight and stop these bad bills.

Stay engaged

As we head into the next phase of session, I’ll continue fighting for common-sense policies that protect taxpayers, strengthen our economy, and support working families.

Your input and feedback shape the decisions made in Olympia, and I encourage you to stay engaged throughout session. Here are some resources to help:

• My legislative website: Access updates, contact information, news, and more.
• TVW: Watch live and archived broadcasts of legislative and committee action.
• Capitol Buzz and The Ledger: Stay updated on legislative news and analysis.
• The Current: A weekly legislative newsletter from the House Republicans.
• The Week Ahead: Sign up to receive a weekly summary of important committee hearings and Capitol campus activities, complete with links and details to keep you informed.
• Bookmark the Washington State House Republicans website.
• Follow Washington State House Republicans on social media: Facebook, Instagram, Threads, Twitter, LinkedIn, YouTube, and Reddit.

Please contact me if you have any questions, concerns, or ideas about your state government or the topics covered in this update. My contact information is at the bottom of this email.

Sincerely,

Joshua Penner