Lobbyists brief Monroe council on 2025 session: budget, taxes and housing changes

Jim Hedrick and Luke Gesser, Monroe’s legislative representatives, presented a summary of major 2025 state legislation and the biennial budgets during the City Council meeting on July 8.

“Most bills that passed the session will take effect July 27,” Hedrick told the council, while noting some tax changes already took effect July 1. He said the adopted operating budget totals about $77.9 billion and includes roughly $6 billion in cuts offset by about $9.4 billion in new revenue over four years.

Hedrick and Gesser reviewed bills and trends likely to affect cities. Key points included: fully funded state collective bargaining agreements for state employees; a transportation package that raised the state gas tax by 6 cents and indexed the tax to annual inflation; and capital‑budget allocations that included $360,000 for replacement of synthetic turf at Monroe Rotary Field and funding for restrooms at the Wagner Performing Arts Center.

On public safety funding, Hedrick said House Bill 2015 creates a three‑year statewide local law enforcement grant program with approximately $100 million and also authorizes a new local 0.1 percent public safety sales tax that cities could adopt for three years (until June 30, 2028) without voter approval and after that only with voter approval. Eligibility for the state grant program is conditioned on jurisdictions adopting certain policies, staffing plans and trainings, he said.

Gesser reviewed transportation implications for the city and said the state is funding design, engineering and right‑of‑way work for the SR 522 widening project and that completing that work on schedule is critical to avoid extended delays for construction funding. He also noted the transportation budget faced a roughly $1 billion shortfall before adjustments, and that the move to electric vehicles and better fuel efficiency are long‑term pressures on gas‑tax revenues.

On housing, Hedrick summarized a cluster of bills that advanced statewide housing policy changes. He highlighted that House Bill 1217 establishes yearly rent increase limits capped at 7 percent plus inflation (10 percent maximum) after a 12‑year exemption from certificate of occupancy for newly constructed units. He also described legislation that made administrative lot‑split processes and unit‑lot subdivision mechanisms available to local governments. Hedrick flagged several housing measures that failed this session, including bills on camping ordinances and step housing, and cautioned these items are likely to return in future sessions.

Council members asked about vetoes, revenue forecasts and possible future sessions; Hedrick and Gesser said Governor Inslee’s successor issued one personal veto and that the state faces uncertain revenue forecasts through the fall. No council vote or action followed the presentation; the session recap was informational.