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Dear Friends and Neighbors,
The dust is finally settling on this legislative session, and I want to give you the straight scoop on what happened in Olympia. My focus was simple: stopping the policies that drive up your costs, bloat the government, and strip away your right to run your own community. Whether I was in committee or on the House floor, I fought every bad idea that makes it harder for our families to pay the bills.
The Spending Addiction and the Affordability Crisis
Over the last two years, majority policies have made life a struggle. I hear about it at the grocery store and the gas station — everything costs more. Instead of fixing it, the majority doubled down on a spending addiction that has pushed the state budget past $80 billion.
While they claim affordability is a priority, they still pushed for several bills that would have made life even more expensive. My colleagues and I stopped these for now, but they will be back:
- HB 2421 – New state fees on vehicle tires
- SB 5797 – Wealth tax on families and employers
- HB 2100 – New payroll tax on your wages
- HB 1420 – New tax on clothing and basics
- HB 2559 – Rental housing tax that hikes your rent
- HB 2073 – Tax on health insurance reserves (higher premiums)
- HB 1607 – A bottle deposit scheme that was just a grocery tax
The Unconstitutional Income Tax
To fund this record spending, the majority pushed through an unconstitutional income tax. They used a “millionaires only” label to keep people from looking too close, but once the machinery for an income tax is built, they can lower the threshold to hit everyone with just a simple-majority vote. I joined my House Republican colleagues in a record debate that lasted more than 24 consecutive hours to stop majority Democrats from pushing the tax through in the middle of the night as they planned. We offered dozens of amendments to address constitutional concerns, tackle implementation problems and protect the middle class, but nearly all were rejected by the Democratic majority.
Already, this tax hurts our local small business owners, family farms, and contractors who keep our district running. When our local employers get squeezed, jobs disappear and our local growth slows down. Worse yet, the majority blocked your right to a referendum. They knew the public would reject this tax at the ballot, so they simply took your vote away.
Wasted Money and the Moody’s Warning
While the state demands more from you, they are losing track of the money they already have. The State Auditor just found that weak oversight in the childcare subsidy system led to $37 million in questionable payments in one year. Even worse is the “damning” forensic report released just last week on the King County Regional Homelessness Authority . This agency gets massive state tax dollars but cannot account for $13 million in public funds.
This level of waste has real consequences. Moody’s recently downgraded Washington’s financial outlook to negative. They are warning that our state is at risk of losing its top credit rating because of this unsustainable budget and reckless reliance on reserves. By 2028, our reserves are projected to collapse to just 1.6 percent, leaving us dead last in the nation. Democrats passed this budget alone and own the choices that led to Moody’s negative outlook. If a downgrade follows, it will cost taxpayers more.
The Budget House of Cards: Raiders and Cuts
To fuel this spending, the majority authorized a legally questionable $4 billion raid of the LEOFF 1 law enforcement and firefighter pension fund. This money grab is a betrayal of our first responders and totally unacceptable. It also sets a dangerous precedent. If the state is willing to tap one pension fund, no retirement system it manages is truly off limits.
It is a House of Cards because while they are spending record amounts, they are slashing vital programs. Over the last two budgets, they cut $1 billion from Medicaid, hurting our most vulnerable neighbors. Our schools are also taking a hit with a $250 million cut to K-12 over four years. This includes reducing credits for Running Start and cutting Local Effort Assistance.
LEA is ‘levy equalization’ money that helps districts like Bethel, Rainier, and Orting provide essential programs while keeping local property tax rates from skyrocketing. Without it, we either pay more or our kids get less. All of this is happening while they find money for new taxes to pay for things like taxpayer-funded abortions. It is not sustainable. You are paying more but not seeing better results.
Watch Rep. Matt Marshall fight the state income tax
As the assistant ranking member on Health Care & Wellness, I pushed back on things that drive up your bills. That includes a push to expand the 340B drug program, which has turned into a money-maker for massive health systems while you still pay full price. I’m a “no” on expanding that until we get real safeguards for your wallet.
Watch Rep. Marshall push to restore health care money cut by Democrats
Even though the Capitol is roughly an hour away, the decisions made inside those walls often ignore the reality of rural life. I’m tired of seeing policies that don’t understand our workforce, our schools and our families. Even when the bad stuff passed, I used every second I had to ask the tough questions and force a debate. Your voice belongs in the room, and I made sure they heard it.
The Olympia Power Grab
Several bills passed this session represent a massive shift of power away from your neighborhood and into the hands of state bureaucrats.
Watch Rep. Marshall stand up for local law enforcement
Removing Your Elected Sheriff: I’ve always known we answer to our local boards and the people we serve. The Sheriff should be no different. If they aren’t doing the job, you vote them out. But SB 5974 gives a state commission, hand-picked by the governor, the power to remove a locally elected Sheriff.
Watch Rep. Marshall fight for public safety dollars
Sweeping New Investigative Powers: SB 5925/HB 2156 gives the Attorney General’s Office massive new authority to dig into the lives of private citizens and businesses without first filing a case in court. Even worse, they can now use gag orders to keep these investigations secret. It is a bypass of the normal court protections we all rely on.
Results at Home: Capital Budget Wins
While the main budget is a mess, the capital budget is where we got the practical stuff done. I fought to make sure the 2nd District wasn’t overlooked so your tax dollars actually come back to help our neighborhoods.
This biennium, we locked in funding for:
- Bucoda community facility improvements to preserve a key gathering place.
- Tenino Community Service Center to keep the food bank running.
- Eatonville High School renovations to keep our kids safe.
- Nisqually Community Forest to protect 1,300 acres of working timber land.
- Benston Hall Senior Center in Graham to keep things welcoming for our seniors.
Staying in Touch
Because this is an election year, state law restricts when I can send official updates. These rules take effect Monday, May 4. I will not be able to send mail or email updates until after the November election is certified.
This is my final update for a while, but my office remains open. If you have questions or ideas, please reach out.
Sincerely,
Matt Marshall
