City’s lobbyists outline tight Washington state budget, urge local priorities and capital requests

Duval’s state and federal contract lobbyists told the City Council on Jan. 7 they expect a contentious 2025 legislative session marked by a sizable operating shortfall, a flurry of policy proposals and opportunities to press the city’s capital‑budget priorities.

Why it matters: A large state budget gap and high turnover among legislators and agency heads will shape what the Legislature funds this year. Lobbyists urged council to press for capital funding for the civic campus and to watch Public Works Assistance Account protections that support local infrastructure projects.

Key points from the briefing

- Budget gap: Lobbyists summarized current estimates that Washington state faces an operating shortfall in the low‑ to mid‑double‑digit billions over the four‑year statutory budget window; speakers used a working figure near $12 billion as an example of the scope to be addressed.

- Revenue ideas and proposals: The governor’s proposals — including freezes, delays to some program starts and high‑profile proposals such as a 1% wealth tax on holdings above $100 million — are likely to dominate the news. Lobbyists said other revenue measures (payroll taxes, excise taxes) and changes that affect local business may arise.

- Local impacts to watch: The governor’s proposed budget drew scrutiny for a plan that would shift roughly $100 million per biennium out of the Public Works Assistance Account (PWAA) to help the operating gap — a move lobbyists said local governments will resist because the PWAA is important for city infrastructure.

- Duval priorities: The Association of Washington Cities and contract lobbyists will pursue capital funding for Duval’s civic campus (lobbyists described a $2 million design request), support for Third Avenue infrastructure, and protections or increases to funds that support local public works and maintenance.

- Property tax cap: Lobbyists discussed a state‑level proposal to raise the statutory 1% local property‑tax cap to a higher limit tied to inflation and population growth (for example, figures discussed included 3%). That change would require state approval; lobbyists described it as an AWC priority to give cities more fiscal flexibility.

Direct quotes and context

“We have a budget gap of tens of billions; we expect a long and difficult session,” said Katie Whittier, vice president for Washington affairs at CFM Advocates, summarizing the fiscal environment. She urged attention to capital requests because capital budgets can be insulated from some operating pressures.

Brian Inslow of Ravelius Consulting added that the capital budget remains an opportunity even in a tight operating year because bond capacity and available climate‑related funds create avenues to advance local infrastructure projects.

What Duval asked or directed

Council and staff discussed timing for advocacy and possible sponsorship of bills to carry the city’s capital requests. Lobbyists said they will approach state legislators to identify sponsors and to protect programs that fund local infrastructure.

Next steps

Council’s AWC representative and the city administrator will coordinate with the lobbyists to refine the civic campus capital request and monitor PWAA proposals during the session. Staff and the lobby team plan to brief council as bills develop.

Sources: Presenters Katie Whittier (CFM Advocates) and Brian Inslow (Ravelius Consulting) gave the briefing to council members and staff.