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WA House Democrats Unveil Supplemental Budget Featuring Income Tax Push, Pension Raid

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Speaker Jinkins

House Democrats released their proposed supplemental budget Sunday, drawing sharp criticism from Republicans who say the plan raises taxes, deepens deficits, and raids dedicated funds to sustain spending growth.

The proposal increases spending by roughly $2 billion, relies on nearly $2 billion in new taxes over the next four years, and spends more than projected revenue, according to House Republican Budget Leader Rep. Travis Couture (R-Allyn). It also withdraws approximately $880 million from the Rainy Day Fund, shifts money across accounts, and includes what Republicans call one-time sweeps and budget maneuvers.

In addition, Republicans say the plan raids the Law Enforcement Officers’ and Fire Fighters’ Retirement System Plan 1 (LEOFF 1) pension system by redirecting funds to help balance the budget rather than leaving them dedicated to retirees and public safety obligations.

“In the middle of another predictable multi-billion-dollar deficit, Democrats chose to spend more than Washington was projected to bring in and grow government by another $2 billion,” Couture said. “They drained the Rainy-Day Fund, launched an unconstitutional income tax, and raided a pension system — all to avoid making hard decisions.”

The income tax reference points to broader Democratic efforts this session, including passage of SB 6346, a 9.9% tax on income above $1 million. Republicans argue the measure conflicts with Initiative 2111, approved by lawmakers two years ago after more than 450,000 signatures were gathered to prohibit a statewide income tax, and warn it could eventually expand beyond high earners.

“Once you give government the power to tax income, it never gives it back,” Couture said. “Democrats say it’s only for the wealthy — but they’ve refused to put real guardrails on it. Today it’s ‘just the wealthy.’ Tomorrow it’s the rest of us.”

Couture said the budget leaves Washington with one of the lowest reserve levels in the country and repeats past mistakes that turned a multibillion-dollar surplus into deficits.

The proposal also includes reductions in K–12 funding, including cuts to Local Effort Assistance that Republicans say will disproportionately impact rural districts.

“Our state constitution says funding K-12 education is our paramount duty,” Couture said. “Instead of protecting classrooms, Democrats protected government growth and special interests.”

The debate unfolds amid broader economic strain. Washington’s unemployment rate recently ticked up to 4.7% while the national rate declined, and business surveys show taxes remain employers’ top concern.

The House Appropriations Committee is scheduled to hold a public hearing Monday at 4 p.m., with executive action planned Wednesday.

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