Contract lobbyist: state supplemental funds include $300,000 for Mountlake Terrace library but cities still face budget pressures

Shelley Hilder, the city’s contract lobbyist with Gordon Thomas Honeywell, told the Mountlake Terrace City Council on April 2 that the 2026 short legislative session included $300,000 to finish repairs to the Mountlake Terrace Library’s roof and HVAC system, closing the city’s two‑year request for the project.

Hilder gave a broad summary of the 60‑day session and the supplemental budgets, saying the legislature passed roughly 268 bills and the supplemental operating budget increased spending by about $2.4 billion, bringing the two‑year operating total to roughly $80.2 billion. She said roughly $880 million of that amount came from the state’s budget stabilization (rainy day) account.

The lobbyist framed the session as mixed for cities. "It was not a terrible session for cities. But there’s still room for improvement," Hilder said, urging council members to continue educating legislators about municipal cost pressures. She said the package includes sales‑tax exemptions on select items and that a new "millionaires tax" has a delayed effective date of Jan. 1, 2028; the measure set aside $200 million for local government fiscal health but Hilder warned that amount may not fully offset lost local sales tax revenue.

The presentation detailed line items with local relevance. Hilder said Mountlake Terrace had requested $800,000 in the first year of the biennium for library repairs, received $500,000 in the 2025 capital budget and that the short session provided the remaining $300,000. She credited the city’s delegation—Rep. Ryu, Sen. Solomon and Rep. Davis—for championing the request.

On infrastructure, Hilder said the supplemental operating budget reflects a $375 million transfer from the Public Works Assistance Account (PWAA) to the general fund but that the state backfilled the program with about $279.5 million in bond funding, combined with prior bond capacity and a $10 million emergency grant for flood‑impacted local governments, leaving roughly $389.5 million for PWAA grants.

Hilder also flagged insurance and liability costs as a major fiscal driver. "The budget does allocate $1 billion to cover the state's self‑insurance liability premium," she said, but she added the legislature did not resolve the underlying causes of rising costs. The Senate explored tort‑reform measures (including a proposed arbitration requirement) that did not pass; the operating budget directs a committee to recommend changes to tort‑claim processes and report by November.

Hilder said housing outcomes included roughly $123 million added to the Housing Trust Fund, with about $55 million targeted to programs for low‑income, first‑time homebuyers. She said the final millionaire’s‑tax package originally contained proposals to offset unfunded public‑defense mandates for local governments, but the final version did not include that funding and the operating budget did not add it either.

Council members used the question period to press the lobbyist on long‑term fiscal tools and cost drivers. Council member Sonmore urged continued education of legislators and careful messaging to residents about how state actions affect local budgets; the mayor pro tem and other members emphasized tort reform and the need to address rising public‑defense and insurance costs.

Hilder closed by urging the council to thank the 32nd District delegation and to prepare city staff to implement funded projects and any new state laws. The council did not take action tonight; Hilder’s written report and a list of bills that may affect city government are in the council packet for further review.