In assessing the work of the 2025 Legislature in Washington, the bottom line is the bottom line. And with the state facing an expected $16 billion revenue shortfall over the next four years, lawmakers have opted to increase the pressure on an already teetering economy.

After months of negotiations and with uncertainty about how President Donald Trump’s tariffs will impact Washington businesses, the Democratic-led Legislature has increased spending by $7.4 billion in the 2025-27 biennial budget — most notably through a bump to the state gas tax. There also is an increase to the business and occupation tax for a variety of industries, and a surcharge for businesses with more than $250 million in taxable state income.

A statement from business leaders, including the Washington Roundtable, said: “These extreme tax hikes send the wrong message to employers: grow your business, and you’ll literally pay for it. At a time when job creators need certainty and support, the state is punishing growth and innovation.”

Overall, the plan for the next four years includes $5.9 billion in spending cuts but $9.3 billion in new taxes. It is a risky approach for dealing with a budget shortage, but it avoids the most extreme proposals that were floated during the 105-day legislative session.

Among those was a suggested wealth tax on the richest Washingtonians, which would have placed a price on total individual holdings of more than $50 million. Democratic Gov. Bob Ferguson, who took office in January, said he would veto a budget that included the tax, and lawmakers acquiesced.

Notably, Senate Democrats held a symbolic vote in the final hours of the session, supporting a wealth tax and setting up a legislative debate for next year. But for now, Ferguson has won the battle.

Ferguson also prevailed in getting a $100 million grant program devoted to hiring and retaining law enforcement officers throughout the state — a proposal that once appeared defeated but was included in the final budget.

As with any budget, however, the largest impact likely can be found in the smallest details. While lawmakers increased state funding, they also maintained constraints on revenue capacity for cities and counties. A proposal to lift limitations on the growth of municipal property tax levies from 1 percent annually to 3 percent was defeated, hampering the ability of local governments to keep pace with inflation.

The result is a perpetual decrease in local services, which ultimately leads to more reliance on the state to fund basic services.

“It was a really challenging session to try and walk a very narrow path,” House Speaker Laurie Jinkins, D-Tacoma, said.

The question is whether average Washington residents will feel that they have been trampled upon. Democrats stressed the need for funding to protect vulnerable people and continue existing programs. Republicans, who all voted against the final deal, said the budget problem is caused by overspending and that new revenue is not needed.

The issue is more complex than the simplistic Republican view suggests, but there are legitimate questions about the need for a $7.4 billion spending increase over the next two years — even when accounting for inflation.

The Washington governor has the power to veto portions of legislation, and Ferguson said, “I look forward to carefully reviewing the budgets line by line.” We trust that the new governor will take a prudent approach to protecting the state’s bottom line.