Thurston County hears legislative debrief; staff warn of continued budget pressure, outline state funding wins and shortfalls

Olympia — Thurston County commissioners on June 18 received a briefing on the 2025 Washington State legislative session that county lobbyists said was marked by deep budget shortfalls, difficult policy choices and a handful of specific investments the county could pursue.

Devin Gia, a lobbyist with Capital Consulting, told the Board of County Commissioners the session lasted 105 days and that legislators faced a multi‑billion dollar shortfall that forced significant cuts and new revenue discussions. “It was a long session. It was 105 days,” Gia said. He summarized the fiscal picture as a roughly $16 billion deficit in the operating budget and about a $1 billion shortfall in the transportation budget for the upcoming biennium.

Gia said the legislature made more than $7 billion in cuts to the four‑year operating budget and that revenue bills passed but contained limits and tradeoffs for local governments. He highlighted three revenue measures discussed by staff: a change to the business & occupation tax affecting only the state portion (listed as “2081” in the briefing), an expansion of the capital‑gains tax (listed as “5813” in the briefing) that raises rates above the first $1 million of gains, and other excise and fee changes. Gia said the operating budget reductions left some state shared revenue streams relatively intact for counties this biennium, but cautioned that the picture could change in the next forecast.

Capital budget and housing: Gia said the legislature adopted a $7.5 billion capital budget and intentionally reserved about $349 million in bond capacity for next year. He urged the county to develop capital requests now to position for that money. Gia also reported a “record investment” in the state housing trust fund and noted other housing and homelessness appropriations discussed in the session. When a commissioner asked specifically about a cited $772 million for housing and homeless programs, Gia said he would follow up with a detailed list of allocations.

Transportation and fisheries funding: The briefing said transportation faced rising costs and falling revenues; legislators considered but did not adopt a road‑usage charge. Lawmakers increased some fuel and vehicle fees and committed to a proposed permanent dedication of 0.1% of state sales tax to transportation starting in fiscal year 2028. Gia also said the legislature put $1 billion into the biennial transportation budget to address state fish‑barrier remediation in the injunction area, a complex and evolving issue that had threatened to divert other transportation funds.

Public defense and courts: Gia said the session increased some public defense funding, and that applications administered by the Office of Public Defense are due July 25. But he warned the new statewide caseload and staffing standards from the Washington Supreme Court — which set limits such as maximum annual caseloads for defenders — will increase county costs. The briefing also said legislative action cut judicial reimbursement to the county roughly in half; the county previously received about $1.1 million per year and the final budget only funded the second fiscal year of the biennium. Gia outlined options under consideration, including a supplemental budget request or outreach to the governor’s office to seek restoration of funds.

Behavioral health and other investments: Gia said the session included what he described as a large investment in community‑based behavioral health — about $1.13 billion, including competitive grants for crisis facilities — and additional money tied to the Climate Commitment Act. He also noted one capital request that advanced for Thurston County: a reappropriation for the Vail Road roundabout.

Public safety grants and local options: The briefing described a new, $100 million grant program for criminal justice purposes (listed as House Bill “2015” in the presentation) to be administered by the Criminal Justice Training Commission; eligibility requires meeting a long list of statutory conditions (for example, at least 25% of officers must have completed CJTC crisis intervention training). The bill also allowed local governments the authority to adopt a 0.1% sales tax dedicated to criminal justice purposes, but only jurisdictions meeting the statutory eligibility requirements could use that option.

Other items and next steps: Gia said Senate Bill 5154, a proposal that would have clarified county auditor duties and the Board of County Commissioners’ role in draft budget preparation, died during session; staff recommended tracking and potentially developing a county position before it is reintroduced. Gia and county management recommended beginning 2026 legislative preparation in late summer or fall and working with the county’s delegation now on any capital requests.

Why this matters: County officials said many session outcomes shift costs and responsibilities to local governments or leave significant uncertainty for next year. Commissioners and staff identified public defense mandates, judicial reimbursements, transportation project funding and housing capital grants as items that could materially affect county budgets and services.

What county staff will do next: County staff said they will prepare a detailed follow‑up on housing allocations, a briefing on public defense application timing and impacts, and begin earlier planning for the 2026 session, including outreach to the county’s legislative delegation.

Direct quotes in this article come from Devin Gia, Capital Consulting, and from remarks by County Chair Ty Mencer during the session.