Business Community Government
New legislators tackle deficit in debut session
Newly seated lawmakers Adison Richards and Deb Krishnadasan jump directly into the fire today (Monday, Jan. 13) as the legislative session opens with the state facing a large operating budget shortfall.
Richards, 32, defeated Jesse Young in November for the House position Spencer Hutchins left vacant. Kitsap County commissioners and Pierce County Council members last month appointed Krishnadasan, 57, to complete the third year of Emily Randall’s Senate term. Randall was elected to Congress after Derek Kilmer chose not to run again.
They joined old hand Michelle Caldier, beginning her sixth term in the House after defeating Democrat Tiffiny Mitchell, Thursday evening at the 26th Legislative District Sendoff.
From left, Rep. Michelle Caldier, R-Gig Harbor, Rep. Adison Richards, D-Bremerton, and Sen. Deb Krishnadasan, D-Gig Harbor, participate in a panel discussion Thursday at the 26th District Legislative Sendoff. Photo by Ed Friedrich
The trio engaged in a discussion moderated by Miriam Battson, president and CEO of the Gig Harbor Chamber of Commerce, which conducted the annual event at the Gig Harbor campus of Tacoma Community College. A projected four-year, $12 billion budget deficit hung over the talks.
Outgoing Gov. Jay Inslee on Dec. 17 delivered his proposed two-year $79 million operating budget, up from the current $70 billion. He called for a new tax on the state’s wealthiest residents and a higher tax on businesses, along with spending freezes and cuts.
Spending cuts, new taxes or both
Incoming Gov. Bob Ferguson last week said he’ll seek $4 billion in cuts across most state agencies and four-year universities while directing $800 million in new spending to free school lunches, police officer hiring, childcare access and affordable housing. New taxes would be a last resort, he said.
The state lost tax revenue because businesses closed during the pandemic, but that didn’t create the budget shortfall, said Caldier, R-Gig Harbor.
“It had to do with spending,” she said. “The cost to start (state) programs is low, but they escalate as they get implemented.”
New Sen. Deb Krishnadasan speaks with Randy Boss, left, and Mitch Anderson before the event. Photo by Ed Friedrich
The gap developed because the state commits more to education, human services, health care, prisons and other operations than it collects in taxes. To balance the budget, spending needs to be cut, taxes raised or likely a combination of both.
Washington shouldn’t bump up taxes on businesses because that could force them to fail or move away, said Caldier, 48. The more workers contributing to the tax load, the better, instead of the state supporting unemployed people.
“As different (tax) proposals come forward, they’re very palatable to many legislators,” said Caldier, a retired dentist. “’We’ll just put it on the businesses.’ The hard part is, they go to other states and the smaller businesses shut down.”
Washington leaking businesses
Richards, who flipped his seat to Democrat, pointed out that Washington — home of giants Starbucks, Boeing, Amazon and Microsoft — has seen businesses leave while startups surge elsewhere across the country. The number of private firms grew in 85% of counties from 2019 to 2023, but in just three of Washington’s 39 counties.
“It’s a big deal,” said Richards, a Peninsula High graduate who practices law in Bremerton. “I want to make sure we’re growing businesses here in our state. We’ve got to continue that legacy.” He said he doesn’t support balancing the budget on the backs of small businesses.
State Rep. Michelle Caldier, R-Gig Harbor, speaks with Gig Harbor Chamber of Commerce President/CEO Miriam Battson, right, before the event. Photo by Ed Friedrich
And businesses here are already being taxed more than in many other states, the lawmakers said. Forty-five percent of the operating budget comes from retail sales taxes, and 21% from business and occupation tax.
“I have (business) friends who are still struggling with the minimum wage increase,” said Krishnadasan, a Democrat. “To put more burden on them … I want businesses to stay. I want to understand the implications of the legislation we do.”
Businesses also shoulder costs of health care, unemployment and other employee benefits. Last year, a bill to provide unemployment to striking workers nearly passed. It will probably get another try this session, Caldier said.
Education among Krishnadasan priorities
Krishnadasan said she’d have to weigh each bill that pits cost of living issues like affordable housing, child care and food security against small businesses because both are personal priorities. Other main thrusts for the former six-year Peninsula School Board member are education, particularly special education, transportation and MSOC (materials, supplies and operating costs), and transportation.
Krishnadasan wondered why it takes so many people, so many forms, so many channels to do something like build a house or open a business. Bureaucracy and regulations create delays and raise costs.
“Where can we save money? Where can we push projects off? It’s going to be a challenge,” she said.
State Rep. Adison Richards, D-Bremerton, left, speaks with new Gig Harbor City Councilman Reid Ekberg before the sendoff. Photo by Ed Friedrich
Caldier already has written a bill to reduce regulations on childcare centers so it’s not as difficult and expensive to provide the service, she said.
Legislators can’t do it alone
The lawmakers encouraged the 50 guests and the community in general to participate in government. Call them. Visit them in Olympia. Testify on bills, which can now be done remotely. Follow hearings on TVW. Caldier said one of the first things she looks at is the number of constituents supporting or opposing a bill.
“In Olympia, a lot of people don’t like the heat,” she said. “If people are upset, that will change their minds. If 1,000 people are in opposition, we absolutely pay attention to that because at the end of the day we’re here to serve you. I want you guys to be engaged because we need you more than ever.”
“Democracy is a team sport. We need you,” added Richards, whose top priorities are cost of living to include healthcare and childcare; public safety, workforce development and transportation. “We’re here for Team 26. I’m excited to work with folks on both sides of the aisle.”
From left, panel moderator Miriam Battson, Rep. Michelle Caldier, Rep. Adison Richards and Sen. Deb Krishnadasan. Photo by Ed Friedrich
Not only will Richards and Krishnadasan be learning on the fly but they’ve also been assigned to four committees instead of the typical three. Caldier is serving on just two committees, including Appropriations, so the veteran can concentrate on issues such as fending off tax increase attempts against an overwhelming majority, she said. Democrats hold a 59-39 advantage in the House, 30-19 in the Senate and the new governor is a Democrat.
Local budget requests
Local bodies have submitted capital budget requests. The city of Gig Harbor seeks $1 million for the $3.5 million commercial fishing homeport project.
PenMet Parks is asking for funds to design and prepare the former Peninsula Gardens nursery site for a new 11-acre, $10.5 million park. The district is also requesting funds to restore the shoreline, provide water access and conduct conservation education at Tacoma DeMolay Sandspit Park on Fox Island.
Pierce County seeks funding for essential services such as public safety, behavioral health, indigent defense caseloads and capital projects, none of which are on the peninsula, and a change to state law to allow real estate excise tax revenue to be spent on public airport infrastructure like Tacoma Narrows.
The Chamber of Commerce isn’t requesting funds but urges the Legislature to champion the state’s economy through small businesses.
Don’t forget the event host
Tacoma Community College President Ivan Harrell welcomed sendoff guests to the school’s Gig Harbor campus. He said TCC enrollment has returned to pre-pandemic levels, enrollment has increased 16% since Fall 2021, and 29,000 students attended 26th District colleges TCC, Olympic, Bates and Clover Park last year. Each one adds to the economy, he said.
“It will be an extremely challenging year and I appreciate everything you can do to support our students,” he said to the lawmakers. He then offered a toast. “A wonderful cheer to a successful session and thank each of you for what you do to support our community.”
The 105-day legislative session is scheduled to adjourn on April 27.
Contact information
Rep. Michelle Caldier
122H Legislative Building
P.O. Box 40600
Olympia, WA 98504-0600
[email protected]
(360) 786-7802
Sen. Deb Krishnadasan
230 John A. Cherberg Building
P.O. Box 40426
Olympia, WA 98504
[email protected]
(360) 786-7650
Rep. Adison Richards
335 Legislative Building
P.O. Box 40600
Olympia, WA 98504-0600
[email protected]
(360) 786-7964