Two of My Bills Have Passed, and Budget Talks are Entering their Final Phase

Dear Friends and Neighbors,

With less than two weeks left in the 2025 regular session—which is scheduled to adjourn on April 27—the pace in Olympia has shifted from brisk to breakneck. We’re debating late into the night and working through weekends to meet final deadlines. The House floor has become a second home—and coffee, a fifth food group.

Let’s start with some good news!

I’m pleased to share that two of my bills have passed the Legislature, and one has already been signed into law by the governor.

House Bill 1156 is about honoring the dedicated volunteer firefighters serving our communities. These heroes may not collect a paycheck, but they put their lives on the line just the same. This bill allows them to participate in the state’s Deferred Compensation Program, giving them access to a long-term savings tool once reserved for salaried employees. It’s a practical step to recognize their service, boost recruitment, and offer the kind of financial planning support they deserve. This bill is now on the governor’s desk awaiting signature.

House Bill 1157 may seem like a modest change, but it carries significant meaning. It expands access to certified birth and death records by allowing great-grandchildren to obtain them—a commonsense change that helps families stay connected, manage legal affairs, and preserve their history. This bill was signed into law on Friday, April 11.

Budget debates and tax proposals

As temperatures begin to rise across Washington, so have the budget negotiations in Olympia. Lawmakers are now focused on finalizing the state’s three major budgets: operating, transportation, and capital.

Although these budgets move through the process around the same time, they are not funded the same way—and that distinction matters. Let’s start with the capital budget.

I serve as the lead negotiator and ranking member on the House Capital Budget Committee, and I can tell you this budget differs from the others. It’s primarily funded through long-term bonds—not general fund tax dollars—and focuses on durable, physical investments that directly benefit communities across Washington. That includes public schools, clean water systems, affordable housing, and critical infrastructure. These bricks-and-mortar projects improve daily life, support local economies, and build a strong foundation for the future.

• Learn more here: Rep. Mike Steele applauds $7.63 Billion bipartisan capital budget proposal focused on statewide needs

The House’s proposed 2025 capital budget results from months of bipartisan collaboration. At a time when other state budgets are struggling with shortfalls and fiscal uncertainty, the capital budget is staying within its means. It avoids deficits, protects taxpayers, and delivers meaningful investments in housing, education, behavioral health, and infrastructure. I’m proud of the responsible approach we’ve taken—and confident in the long-term value this plan will bring to communities across our state.

• House proposal documents can be found here.
• Take a look at what’s currently proposed for the 12th District in the House Capital Budget here.

Operating and transportation budget tax proposals

Unfortunately, the same cannot be said for the more controversial operating and transportation budget proposals, which rely heavily on

 new and increased taxes—and not just any taxes, but the kind that hit working families the hardest: property taxes, gas taxes, and fees.

Buried in the operating budget talks is a proposal that could reshape property taxes in a way that puts homeownership further out of reach. Property taxes don’t hit everyone equally—while the wealthy may have investment income and financial flexibility, working families shoulder these increases directly through their paychecks and monthly budgets. Raising property taxes during a housing crisis? That’s like throwing gasoline on a fire.

One of the most concerning proposals is Senate Bill 5798, which would eliminate the current 1% cap on annual property tax increases and replace it with a formula tied to inflation and population growth—allowing increases of up to 8–9% every year, without a public vote. If this policy had been in place for the past decade, property taxes could be 50% higher today. It’s no surprise that more than 43,000 people signed in opposition—the largest public response to any Senate bill this year.

Two other property tax proposals raise similar concerns:

• House Bill 1334: Allows local governments to triple the current cap, raising property taxes by up to 3% annually.
• House Bill 2049: Allows increases based on population and inflation, capped at 3%, and is being marketed as a school and equity funding measure—but the result is the same: higher taxes for struggling homeowners.

Other proposed taxes and fees would hit:

• Sporting events
• Vacation rentals
• Bottled drinks
• Cell phones
• Outdoor recreation like hunting, fishing, and hiking

The proposed house operating budget would also shift healthcare costs to working families, increasing out-of-pocket costs by about $1,400 per year for a family of four.

And the transportation budget? The House passed its proposal with a 66-30 vote on April 2. Unfortunately, it comes with its own set of tax proposals:

• A potential 9-cent gas tax increase
• New highway user fees
• Higher vehicle registration and weight fees
• Ferry fare increases
• $4 per tire increase on the existing $1 replacement tire fee

Visitors from the 12th District

One of the best parts of my job is meeting with members of our community when they visit the Capitol—especially students. Over the past few weeks, I’ve had the pleasure of welcoming several groups from the 12th District, including students from Pinnacles Prep and the Snoqualmie Valley School District.

Their thoughtful questions and enthusiasm for civic engagement are inspiring. It’s always encouraging to see the next generation take an interest in how our government works—and it reminds me why the work we’re doing here matters.

If you or a group you’re involved with is planning a trip to Olympia, I hope you’ll reach out. I’d be honored to connect during your visit.

Working hard for you!

As we near the end of the legislative session, I remain focused on advancing common-sense policies, protecting taxpayers, and supporting the hardworking families of our region. Every vote I take and every decision I make in Olympia is guided by the values and priorities of the 12th District.

Whether it’s negotiating the capital budget, opposing costly tax increases, or championing legislation that strengthens our communities, I’m working hard to represent you. If you ever have questions, concerns, or ideas, please don’t hesitate to reach out. Your feedback helps me serve you better—and I always appreciate hearing from you.

Thank you for the honor of representing you in Olympia!

Sincerely,

Mike Steele