Tag Archives: tort liability

New revenue forecast is ‘near-miss’ but big trouble may be ahead, says Republican budget leader

OLYMPIA… The second of this year’s quarterly state-revenue forecasts was adopted today by Sen. Chris Gildon and other members of the state Economic and Revenue Forecast Council.

The new predictions from the state’s chief economist have revenue collections for the 2025-27 and 2027-29 operating-budget cycles falling $490 million and $638 million, respectively, from the first-quarter forecast in March.

When adopted April 27, the new 2025-27 operating budget – which takes effect in one week – had an ending fund balance of just $80 million, or 0.1% of the $77.9 billion in spending.

Today’s forecast led experts on the non-partisan Senate budget-committee staff to update the state’s budget outlook. It indicates big trouble ahead, said Gildon, R-Puyallup, with the ending fund balance for the 2025-27 budget falling to just $2 million, and a projected shortfall of $331 million in the 2027-29 budget cycle – although those numbers could change depending on the demand for core state services.

He offered this reaction:

“This forecast almost had the majority Democrats’ new budget falling out of balance before it took effect. That would have been an embarrassing first in our state, and there could still be big trouble ahead. A $2 million ending-fund balance is like a family of four with a median income having less than $3.50 in savings. And if there’s a $331 million shortfall even after all of the majority’s new taxes kick in, what then?

“While the governor tries to shift blame to the federal government, this simply highlights a combination of ineptitude, government greed and catering to special interests by his own state party. Our state didn’t quite hit the financial iceberg today, but it certainly lies dead ahead.

“This situation never should have been possible, considering our Democrat colleagues just approved the largest set of tax increases in state history – $12.2 billion over four years. But they knowingly and irresponsibly spent just about every penny available, while also ignoring problems like the state’s tort liability, which is taking up a growing share of the budget. To make things worse, today’s forecast also has job growth in Washington falling to and staying below 1% for the next four years.

“It didn’t have to be this way. The Legislature could have gone with a budget like the ‘$ave Washington’ plan proposed by Senate Republicans – no new taxes, no cuts to existing services, no touching the ‘rainy day’ fund and no outspending the available revenue. But the majority said no twice. That needs to be remembered, especially if their budget collapses.”

Lawmakers this year faced a $7.5 billion shortfall, caused by chronic Democrat overspending. The majority inflated the shortfall to $16 billion and used that incorrect number to justify its record tax increases: $9.3 billion at the state level and another $2.9 billion locally, both over four years, including a property-tax increase.

The first-quarter forecast for 2025, adopted about five weeks before Democrats approved their new budget, was down $479 million for the 2025-27 budget cycle and fell $420 million for the 2027-29 budget cycle.

 

When taxes on WA businesses go up… all of us pay more

Click here or on the image to view this week’s report from the legislative session.

Dear Friends and Neighbors,

While Republicans are busy compiling a list of proposals for eliminating wasteful government spending — more on that next — some in Olympia are considering an increase in the tax paid by Washington businesses. As I explain in the video linked above, it’s the consumers across our state who would ultimately be hit by such a tax hike. I hope you can take a few minutes to view it!

Targeting wasteful spending
This morning the Senate Health and Long-Term Care Committee endorsed my bill about reducing “improper medicaid concurrent enrollment payments.” That’s the official title of Senate Bill 5258; in plain English, this bipartisan legislation would stop making Washington taxpayers pay Medicaid premiums for people who no longer live in our state.

It’s not clear whether the lax management by the agencies that oversee Medicaid services in our state has been wasting tens of millions or hundreds of millions, but the reforms in SB 5258 are long overdue. The bill’s next stop is our Senate Ways and Means Committee.

Reduce state payouts
Also, my video report from Jan. 24 explained the bill I’ve introduced to reduce the costly explosion in “tort” cases that result in big payouts — more than $500 million in just the past two years. Yesterday The Seattle Times published an in-depth report on the issue and our proposed solution, Senate Bill 5144.

Check it out online: $ave Washington!
Check our $ave Washington webpage for more cost-saving ideas like these. No one should be talking about raising taxes when agencies are doing a poor job of managing and protecting the dollars already allocated to them.

The state Capitol grounds were free of snow today, so our 25th District delegation was able to step outside of the Legislative Building (the Capitol dome) for this photo with a group of visiting Pierce County fire chiefs.

Your Input Matters

I am committed to representing your interests effectively and I welcome your feedback and suggestions. You may contact me at:

It is an honor serving you and I look forward to your continued engagement and support!

Sincerely,

 

 

 

Sen. Chris Gildon, 25th Legislative District

Contact me!

PHONE: (360) 786-7648

E-MAIL: Chris.Gildon@leg.wa.gov

MAILING ADDRESS: P.O. Box 40425, Olympia, WA 98504

LEAVE A MESSAGE ON THE LEGISLATIVE HOTLINE: 1-800-562-6000

NOTE: Written communications are subject to disclosure under the Washington Public Records Act.

Washington needs real solutions for renters and housing providers

Click here or on the image to view this week’s report from the legislative session.

Dear Friends and Neighbors,

The cost of buying or renting a home has a major effect on the level of affordability in our state. Republicans and Democrats agree that Washington simply doesn’t have enough affordable housing, but we have different approaches for responding to that need. Although I understand why a rent-control bill has been getting attention here at the Capitol, it’s not the real answer we need.

As Senate Republican budget leader, I am working to control state spending — which also has an effect on affordability — and have found a real trouble spot: the sharply increased cost of mistakes and mismanagement by agencies that cause harm to Washingtonians, and lead to big financial payouts. This is an area where more oversight could conceivably save hundreds of millions of dollars!

More details about both of these important subjects are in the video linked above. I hope you can take a few minutes to view it!

Your Input Matters
I am committed to representing your interests effectively and I welcome your feedback and suggestions. You may contact me at:

It is an honor serving you and I look forward to your continued engagement and support!

Sincerely,

 

 

 

Sen. Chris Gildon, 25th Legislative District

Contact me!

PHONE: (360) 786-7648

E-MAIL: Chris.Gildon@leg.wa.gov

MAILING ADDRESS: P.O. Box 40425, Olympia, WA 98504

LEAVE A MESSAGE ON THE LEGISLATIVE HOTLINE: 1-800-562-6000

NOTE: Written communications are subject to disclosure under the Washington Public Records Act.