Council hears legislative session recap; Maple Court and animal services planning funded

City Manager staff briefed the Lacey City Council on May 20 about the outcomes of the 2025 Washington state legislative session, highlighting state budget actions, housing and transportation bills, and capital grants that affect the city.

Brian Inslow, presenting the legislative summary on behalf of city staff, said the governor signed a largely intact two‑year state budget and that state shared revenues to local governments were mostly preserved. He noted the final package included about $4 billion in new revenue and about $1–2 billion in cuts and transfers to balance the budget.

Inslow walked through items with direct city relevance: an allocation of roughly $12.8 million programmed for the I‑5 corridor project in the 2025–27 biennium and continued programming for transportation grants, continued funding for the Housing Trust Fund, and funding for competitive programs that cities use for housing and infrastructure. For Lacey specifically, Inslow reported the city received a capital allocation of $4.25 million for Maple Court and $1 million for joint animal services facility planning. "I'm very pleased to say that we were funded... at 4 and a quarter million dollars," he said, crediting legislative champions and staff coordination.

Inslow also summarized public safety and law enforcement items. House Bill 2015 created a $100 million grant program for local law enforcement and, he said, authorized a new local taxing option of one‑tenth of one percent that councils may adopt for public safety without taking the measure to voters. He said eligibility and program rules would include priorities for co‑response teams and other training elements and that the city would have to evaluate eligibility requirements if it pursued those grants.

On housing and land use, Inslow flagged several passed bills he said will affect local planning: a rent increase limit (House Bill 1217) that sets a 7% plus CPI cap not to exceed 10% on qualifying rental properties and a parking minimums bill (Senate Bill 5184) that restricts local mandatory parking requirements for certain housing types. He also described legislative changes to real estate excise tax rules (House Bill 1791) that clarify and extend local flexibility for REET 1 and REET 2 uses related to low‑income housing.

Inslow and council members also discussed grants and programs that did not pass and will be reintroduced, and he noted the Public Works Assistance Account shift in the capital budget that replaced some cash with debt financing for the short term. He said the city will follow up with state agencies and legislative contacts to track implementation details and eligibility for grant programs.

Council members thanked staff and legislative liaisons for outreach and coordination during session; no council action was required during the May 20 meeting.