April 7, 2025

Three weeks left and it’s time to take action
With just under three weeks until the session adjourns, it’s now or never for weighing in on critical funding and policy bills. To stay up to date with the latest, check out our Hot Sheet and budget comparison summary.

It is also important to express your thanks to legislators who have been working hard to advance the interests of our communities. Contact your legislators today with a message about your city’s priorities, but also let them know that you appreciate their service. It's been a long three months for them, and it will be a long three weeks before session adjourns, so a message of gratitude is a nice boost right now.

Speaking of gratitude, we want to acknowledge the legislators who have sponsored the critical bills to revise the outdated property tax cap. SB 5798 and HB 2049 both revise the cap to tie it to inflation and population growth—more meaningful measures than the arbitrary 1% cap. Also, both bills make the increase an option for local elected leaders. These bills’ prime co-sponsors are Sen. Jamie Pedersen (D–Seattle), Sen. Marcus Riccelli (D–Spokane), Rep. Steve Bergquist (D–Renton), and Rep. Gerry Pollet (D–Seattle). They are joined by a host of additional co-sponsors who have signed on to show support. We also want to thank the Chair of the House Finance Committee, Rep. April Berg (D–Mill Creek) and Vice Chair for Finance of the Senate Ways & Means Committee, Sen. Noel Frame (D–Seattle) for holding hearings on the bills. As city leaders know, talking about property taxes is difficult. That’s why we really appreciate the leadership of these legislators in sponsoring these important proposals.

As always, we encourage you to stay engaged with the legislative action. You can do that by joining our Friday calls (just three more) to hear the latest news. If you have any questions, feel free to contact the Government Relations team—we are happy to help.

Candice Bock
Government Relations Director

Cities oppose Senate’s last-minute plan to use local infrastructure funding for state culvert projects
A concerning new proposal, SB 5804, would give the state $5 billion in new bonding authority to help meet its court ordered obligation to address fish blocking culverts. To increase the state’s bonding capacity, the bill redirects three of the Public Works Assistance Account’s four funding streams (public utility tax, solid waste collection tax, real estate excise tax) to the general fund, leaving only loan repayments on current PWAA projects to fund the account. The proposal would all but defund the account indefinitely, and future Public Works Board funding for projects would depend on dwindling loan repayment revenues and biennial appropriations from other sources. More

City-supported public safety funding bill gets amended—still needs some work
HB 2015 was vastly changed in committee and was voted out with some critical fixes, but it still needs more technical work to benefit the most cities. AWC is working with legislators to continue asking for improvements to this bill we support, because we want to make it the most functional program it can be for as many cities as possible. You can help by reaching out to your Senators to let them know you support this funding mechanism, and ask them to support AWC’s proposed changes and improvements to best help your city. More

Communicate key budget messages to your legislators
The window to impact budget negotiations is narrowing. On April 4, the House capital budget proposal (HB 1216) passed out of the Capital Budget Committee, and the Senate capital budget (SB 5195) moved out of the Senate on April 5. AWC’s President sent cities an action alert on April 2 with a few key messages on the budgets. If you have not already, take time to contact your legislators during this fast-paced process. Read AWC’s updated budget comparison fact sheet and AWC’s budget matrix for more details on city impacts and a quick reference on preferred provisions. More

AWC President asks city officials to take urgent action
Read the message from AWC President, Duvall Mayor Amy Ockerlander, asking city leaders to take urgent action on key AWC priorities.

Act now: Oppose major diversions from the Public Works Assistance Account
As AWC has been warning for months, state budget writers have proposed new sweeps of the Public Works Assistance Account (PWAA) to support the operating budget. 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. Both chambers provide bond resources to “backfill” the account in the short term, meaning they replace dedicated infrastructure dollars by borrowing money from the market to provide lower-interest loans to cities.

As mentioned above, an even more concerning third development in the Senate (SB 5804) would permanently divert the PWAA’s principal revenue streams (public utility tax, solid waste collection tax, real estate excise tax) to fund state culvert injunction projects – without a dedicated component to address locally owned barriers. Without ongoing state construction bond investments, this sweep on steroids would all but defund the account indefinitely. This model is not sustainable; it will result in the eroding of capacity for public works assistance if dedicated resources are continually swept for other needs.

Don’t wait—find talking points here and call your legislators to urge them to oppose the diversions.

Keep up the engagement on two city priority property tax cap revision bills
Thank you to the cities that testified, signed in as pro, provided written testimony, and reached out to your legislators in support of two priority property tax revision bills last week (HB 2049 and SB 5798). The best thing you can do now to support these high-AWC-priority bills is to keep up the momentum—talk to your legislators about why right now is the ideal time to pass one of these measures. Find more resources, talking points, fact sheets, and videos to help you communicate about this important issue with your legislators.

Budget proposals take aim at the Public Works Assistance Account
Carl Schroeder, AWC's Deputy Director of Government Relations, discusses the proposed sweeps to the Public Works Assistance Account (PWAA) within Washington State Legislature budget drafts, and looks at SB 5804, which would result in a near-total diversion of PWAA funds to repay bonds intended for the state's culvert injunction response. Schroeder lays out talking points that city officials can share with their legislators while asking them to oppose sweeps to the PWAA. More

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

• Building conversions bill passes Senate in amended form (HB 1757) More

Budget & finance

• Different versions of the operating budget proposals have passed the House and Senate, and a conference committee will now work on the final version that the Legislature will approve before it adjourns later this month (SB 5167) More
• The House capital budget proposal moved out of committee, and the Senate bill passed off the floor (HB 1216/SB 5195) More

Economic development

• Libation zones bill survives cutoff and receives required funding for the Liquor and Cannabis Board (HB 1515) More

Environment & natural resources

• In a difficult budget climate, the Recycling Reform Act shines (SB 5284) More

HR & labor relations

• Action needed: Oppose AI bargaining bill ahead of Ways & Means vote (HB 1622) More

Land use & planning

• Growth Management Act appeal bill passes the Legislature (HB 1135) More

Public works & infrastructure

• House committee advances bill on utility relocation costs from fish barrier removals (SB 5690) More
• Bill requires subcontractors to be licensed at the time of bid in public works contracting (HB 1633) More

Transportation

• Transportation budget bills change shape as chambers take up negotiations in full More

Confused by Treasury’s latest notice on the ARPA-SLFRF obligation reporting deadline? We break it down to help it make sense. More

Commerce seeks feedback on guidance for setting residential development fees. A webinar will be held April 10 and comments are due by April 30. More

The Puget Sound Nutrient General Permit is now voluntary. After the Pollution Control Hearings Board issued a decision that the Department of Ecology did not have the authority to issue a mandatory nutrients general permit in addition to requirements of individual wastewater treatment plant discharge permits, the agency announced that it is not appealing the decision and that the former general permit requirements for nutrients are now voluntary for permittees. Ecology sent a letter to all permitees on next steps. More

Ecology is starting its Triennial Review of Chapter 173-201A WAC, Water Quality Standards for Surface Waters. Learn more about the triennial review process in Ecology’s focus sheet and on their water quality standards webpage. A public hearing is scheduled for April 15 at 5:30 pm and comments are accepted through April 22.

The Freight Mobility Strategic Investment Board (FMSIB) seeks city input on its six-year Strategic Investment Program, which is used to identify and recommend the highest priority freight mobility projects across Washington State, spanning all freight modes, jurisdictions, and regions. Survey response will be used to inform and improve the next cycle of project applications in 2026. Take the survey by Friday, April 11.

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.

Post session recap – May 22
Join the AWC Advocacy Team for a full recap of city-related issues from the 2025 legislative session. AWC’s team of advocates will provide an overview of the outcomes on AWC’s legislative priorities, summarize the impacts of passed legislation on cities, and talk through the adopted state budget. Register now.

wacities.org/Advocacy | Legislative issues
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