Washington legislative leaders say deep budget shortfalls will force cuts, ‘budget scrub’ and revenue options

House Majority Leader Joe Fitzgibbon, Senate Majority members and Republican leaders said the incoming 2025 legislative session will be dominated by a large state budget gap and hard choices about whether to pair cuts with new revenue.

"We are going to need to scrub the budget," Senator Petersen said, describing teams from the House and Senate and cooperation with the governor’s office to examine spending line by line and identify efficiencies. Petersen said the cumulative picture includes an operating shortfall and a roughly $8 billion 10‑year transportation shortfall, and that the caucus expects to consider revenue options tied to voter‑backed priorities.

Senator Gildan urged scrutiny of specific drivers of outlays and noted several areas where the state can save money or recover funds. "We paid out over the last two years about $500,000,000 in tort claims," she said, recommending legislative hearings and contract renegotiations to avoid duplicate Medicaid payments and other avoidable costs. Gildan also said the state will have "about $5,000,000,000 more dollars next budget cycle" than the previous cycle but that a shortfall nevertheless exists.

Representative Fitzgibbon pointed to recent initiative outcomes — including capital gains and climate‑related measures — as political evidence that voters accept targeted revenue for schools, long‑term care and transportation, and said caucuses will consider tax equity and a range of options rather than excluding ideas up front.

Republican Minority chair Peter Arbarno argued that leaders should prioritize efficiency and targeted cuts before pursuing new taxes, and warned against regressive approaches. "Looking at priorities and what is going to have immediate impacts to create revenue and investments in our families and our businesses is gonna be really important," he said.

The panel emphasized a desire to preserve bipartisan traditions on capital and transportation bonds; leaders said they do not expect either chamber to use a bare majority to advance debt issuance without outreach to the minority. Several speakers said that while some revenue measures will be considered, the caucuses will also search for one‑time savings, programmatic efficiencies and contractual fixes as part of a multi‑pronged response.

Next steps: lawmakers said budget teams in the House and Senate will continue line‑by‑line reviews and expect to present options when the Legislature convenes. No formal revenue bills or votes were announced at the event.