
March 31, 2025 Now is the time to take action With fewer than 30 days left in this session, now is the time to take action. A lot is happening in the Legislature right now—with both policy bills and budgets—and we really need city officials from around the state to take action to note your support on some important bills and call your legislators about key budget needs. We also need your help to note your opposition on some problematic bills. One of the bright spots this session is the interest in revising the property tax cap. Two bills to do that are under consideration—one in the House and one in the Senate. While they take slightly different approaches, AWC supports both. SB 5798 is being heard today at 4 pm. HB 2049 is being heard on April 3 at 8 am. Take two minutes right now to sign in pro on HB 2049 revising the property tax cap before the hearing on April 3. (Note: The bill/issue says “HB 2049 K-12 education funding” and that is the correct bill.) Send a note to your Senator and ask them to support SB 5798 revising the property tax cap. A few other areas where you can make a difference right now: Urge your legislators to preserve the funding in the budget for the Public Works Assistance Account. Ask legislators to continue funding for the Municipal Research and Services Center (MRSC) in the budget. Ask your senators to oppose HB 1622, impeding management rights regarding bargaining around AI-related technology. Ask your senators to support HB 1791 harmonizing REET 1 and REET 2 and creating more flexibility to fund affordable housing and other infrastructure needs. Reach out to your House members and ask them to support SB 5576 creating a local option tax on short term rentals to fund affordable housing. Don’t forget to check out AWC’s Hot Sheet, a quick guide to the bills still moving through the legislative process, to find more bills to watch and weigh in on. Last week, the House and Senate released their operating and transportation budget proposals; today they released their capital budget proposals. AWC has compiled some of the key impacts to cities, and you’ll find more details in the articles below. The budgets will move very quickly—it is important for city leaders to express your support for city funding needs right away. You can also join us every Friday on our City Action Calls for updated information on bills and budgets. Candice Bock Government Relations Director Operating budgets pass out of committee with mixed news for cities, capital budgets up next The Senate and House passed their budget proposals out of their respective committees on March 27, and the Senate proposal passed off the floor on March 29, with mixed news for city priorities. Both budget proposals would sweep the Public Works Assistance Account (PWAA)—a critical resource for cities—but they also include funding for local public safety, housing, and behavioral health priorities. Both proposals balance the budget gap with a combination of savings, new revenues, use of the Rainy Day Fund reserves, and delays of planned program expansions. See AWC’s coverage on the transportation budget proposals below. The capital budgets are next up and set for release on March 31. Find more details on city impacts, a side-by-side budget comparison, and AWC’s budget matrix. More Two separate AWC priority bills to revise the property tax cap take center stage An issue that cities have been advocating on for over 20 years is here—and now is our time to shine. As you read in the introduction to this newsletter, last week was big for our city legislative priority to revise the 1% property tax cap to align more closely with population growth and inflation. SB 5798 and HB 2049 were introduced in quick succession and scheduled for hearings this week. These proposals offer differing but equally city-supported ideas to revise the property tax cap. Click on the bill numbers to find more information, materials, and talking points to help show your strong support for these bills. House transportation budget includes cities in proposed gas tax increase—Senate budget does not The House and Senate released their respective transportation budget proposals last week; both rely on an increase to the motor vehicle fuel tax to help close the budget shortfall, but only the House proposal includes distribution of the additional revenues to cities. Contact your senators to advocate for including cities in the final budget agreement. Keep reading to learn about budget leaders’ plans to fund the state’s transportation system and how cities fare. More Act now : Oppose major diversions from the Public Works Assistance Account State budget writers have proposed new sweeps of the Public Works Assistance Account (PWAA). The House operating budget diverts $288 million from the account in FY 2026; while the Senate operating budget takes $165 million in FY 2026 (which it would transfer back to the PWAA in FY 2027). Cities strongly oppose both proposed diversions. If either proposal is enacted, the PWAA will see a negative cash balance, may not be able to sustain the loan draws of active projects underway, and will not be able to fund new projects in coming years. While both chambers provide bond resources to “backfill” the account, that option is a short-sighted, unsustainable solution. A concerning, third development in the Senate (SB 5804) would divert all three of the PWAA’s revenue streams (public utility tax, solid waste collection tax, real estate excise tax) to fund state-owned culvert projects. This would effectively gut the account indefinitely. Don’t wait—urge your legislators to oppose the diversions and share these messages: Backfilling doesn’t ensure funds are available for future projects. Ask the Legislature to preserve the funding now and into the future for critical local infrastructure needs. SB 5804 risks eliminating the PWAA altogether. The bill would also redirect funding for local infrastructure projects to support state-owned culvert projects, leaving local culverts in the same waterways in place and resulting in no net benefits to fish and fish habitats. Removing access to low-cost public works funding will directly result in higher utility bills for residents, working counter to the state’s efforts on housing affordability. The PWAA has funded projects in communities large and small for 40 years. Show them how important the PWAA is to your city or town with examples of past and planned projects, especially those with implications for public health, safety, affordable housing, or economic growth. Find more talking points here and call your legislators now. Seattle Times op-ed from two mayors: Lift the local property tax cap A huge thank you goes out to Des Moines Mayor Traci Buxton and Duvall Mayor Amy Ockerlander for penning an op-ed that was picked up by The Seattle Times last week. This is a significant milestone in our effort to get out in front of pernicious misinformation and negative messaging that inaccurately frames the actual cost of lifting the property tax cap. The reality: this is an optional, modest, and data-supported rate that meets a critical growing need and adds great benefit for our city residents. More Operations and transportation budget proposals with Candice Bock and Carl Schroeder AWC Director of Government Relations Candice Bock unpacks the Washington State Legislature's 2025 budget proposals with Deputy Director Carl Schroeder. In a new twist, the Legislature is rolling out budget proposals in installments instead of by chamber. Bock and Schroeder talk about the gains and losses of this year's operating budget proposals for Washington cities, particularly in the areas of public safety and the Public Works Assistance Account. They also compare the House and Senate transportation budgets. More With the budget reconciliation process around the corner, Bock and Schroeder urge local Washington elected officials to contact their legislators now to advocate for their cities' priorities. Get talking points for discussing the operating budget proposals with your legislators. Read a comparison of the House and Senate transportation budget proposals. Read and subscribe to AWC's Legislative Bulletin. Visit AWC’s bill tracker for easy access to the bills you’re most interested in and to filter by the information you’re looking for, whether it’s a brief description of a bill, the status of bills you’re tracking, or AWC’s comprehensive coverage. Tip: Don't forget to bookmark the tracker and check it regularly for the latest updates. This week’s bill highlights: Affordable housing Legislature looks at authorizing kit home building code (SB 5552) More ADU self-certification bill passes Legislature (HB 1353) More Bill proposes reforms to the Multifamily Property Tax Exemption authority (HB 1494) More Prescriptive GMA bill continues through Senate unamended (HB 1183) More Budget & finance Senate payroll tax proposal scheduled for hearing (SB 5796) More Operating budgets pass out of committees (HB 1198/SB 5167) More Senate and House revenue packages set for hearings (SB 5798, SB 5795, SB 5797, SB 5794, SB 5796, HB 2049, HB 2046, HB 2045) More Homelessness AWC’s preferred approach to impounded vehicles is on the move (SB 5484) More HR & labor relations Now is the time to engage on small city police arbitration bill (SB 5040) More Human services Co-response bill picks up new definition for ‘co-response’ (HB 1811) More Public safety & criminal justice Speeding accountability bill sets sights on repeat offenders with assistive technology (HB 1596) More Cities express concerns to Senate about bill to bypass prosecutors (HB 1113) More Automated vehicle noise enforcement cameras bill targets street racing (HB 1423) More Bill to reward decreases in competency orders heard in Senate, set for vote (HB 1218) More Weapons ban for parks and public buildings advances toward House floor vote (SB 5098) More Public works & infrastructure Multiple excavators on one ticket issue resolved, for now, as “dig law” bill progresses (SB 5627) More Transportation State Transportation Commission directives, project streamlining practices updated in Senate transportation budget – Contact AWC with your city input (SB 5801) More The Puget Sound Nutrient General Permit is now voluntary. Get more information on changes affecting wastewater treatment plants that discharge into Puget Sound and stay informed on agency actions related to water quality regulations. More Confused by Treasury’s latest notice on the ARPA-SLFRF obligation reporting deadline? We break it down to help it make sense. More Small City Connectors are kicking off this week in Raymond on April 3! AWC’s Small City Connectors offer a valuable opportunity for officials from smaller communities to build connections, share unique experiences, and gain valuable insights into serving their communities effectively. This is a free event (lunch provided) for elected officials and senior staff from cities and towns with a population under 5,000. Register now! The 2025 AWC Salary and Benefit Survey is now open and ready for your data input! The survey is open until May 2, so make sure your city participates in this important tool for local governments. More Action alerts – What you need to know When AWC needs rapid response from city officials on a particular bill or budget proposal, we will send out email “action alerts.” These emails sometimes go out to everyone and sometimes to a narrow list of targeted cities and towns. We try not to send them out too frequently, but when we do, we really need you to respond ASAP. Often, we need you to take action the same day or within 24 hours to be impactful. Things can move really fast during the session and we can’t wait to communicate the impacts. If you see an action alert, please follow up. To make it easy and quick for you, we typically include links to legislator contact information as well as a few key talking points. Even if you only have a couple of minutes, send your legislator a brief email or a quick text letting them know your position. We appreciate your help and engagement. Want the latest on all the legislative action? Join AWC’s City Action Call this Friday (city members only) During the legislative session, AWC hosts City Actions Calls every Friday at 12:30 pm. In these meetings, AWC lobbyists provide legislative updates and city officials have the opportunity to ask questions and provide feedback. The calls occur every Friday during the legislative session. You now can register once for all sessions.
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