The Daily Briefing – March 3, 2026

Democrats found $2 billion in new spending and billions in new taxes — but couldn’t find the votes to protect kids from fentanyl homes.

 

$80 Billion, More Taxes — But No Fix for Failing Kids

House Democrats rammed through a nearly $80 billion supplemental budget Saturday night, adding $2 billion in new spending while relying on billions in new taxes and a legally questionable income tax. The plan also raids roughly $4 billion from the LEOFF Plan 1 pension fund and drains hundreds of millions from the rainy-day account.

Republicans fought back with amendments — and even five Democrats joined all Republicans in opposing the final budget. It still passed 52–41.

The most emotional fight came over child safety. Republicans offered an amendment to tighten the “imminent harm” standard under the 2021 Keeping Families Together Act, arguing children are being left in homes with fentanyl and meth because the legal threshold for removal is too high.

Through the first nine months of 2025, there were 57 child deaths or near-deaths in the welfare system — more than half linked to opioids.

Lawmakers tearfully read fatality reports. Rep. Michelle Valdez (R-Gig Harbor) recounted her own abuse while the state “provided services.” Rep. Cyndy Jacobsen (R-Puyallup) shared the story of a 5-year-old returned to drug-addicted parents who later died.

Seven Democrats joined Republicans in supporting the amendment. It still failed.

Democrats insist they’re “not ignoring the issue.” But when faced with a direct vote to make it easier to remove children from homes with illegal fentanyl, leadership said no.

Olympia’s priorities are clear: expand government, pass new taxes, protect programs.

Protect vulnerable kids? That can wait for “interim discussions.” Read more at Center Square.

Tax More, Close More

Outdoor lovers across Washington are about to get a harsh lesson in Olympia priorities. Dozens of campgrounds and trails are closing or scaling back this spring and summer as the Department of Natural Resources faces yet another “budget shortfall.”

After a 20% reduction last year, lawmakers are proposing an additional $750,000 cut to DNR’s recreation program. The result? Roughly one worker for every 22 miles of trail or 330,000 visitors.

Commissioner of Public Lands Dave Upthegrove warned of “liability risk” as maintenance falls behind — meaning bathrooms won’t be stocked, trash won’t get picked up, and storm debris will block trails longer. If the state can’t meet safety standards, it shuts the gates.

Full closures include Bear Creek, Chopaka Lake, Anderson Lake, Dougan Creek, Dragoon Creek, Hoh-Oxbow, Lyre River, and Winston Creek campgrounds. Others will open late or operate with reduced services.

Here’s the irony: Washington has one of the highest tax burdens in the country. Democrats are advancing a statewide income tax. Gas prices are among the highest in America. Yet somehow basic access to public lands can’t be funded.

Olympia never seems to run out of money for new programs.

Just for the parks you already paid for. Read more at Seattle Red.

Even the Wall Street Journal Sees the Train Wreck

The Wall Street Journal editorial board just took aim at Washington Democrats’ push for a state income tax and higher capital gains taxes — and the message was simple: this is how you kneecap a tech powerhouse.

According to the op-ed, Olympia is ignoring both voter opposition and Washington’s legal history in its rush to layer on new taxes. The warning? Copying high-tax states like California is a great way to copy their out-migration problem too.

The Journal highlighted a letter from artificial intelligence leaders to Gov. Bob Ferguson, cautioning that making Washington more expensive will “materially undermine” its ability to compete for talent against states like Texas. Translation: if you tax the innovators, don’t be shocked when they innovate somewhere else.

The numbers back it up. The Association of Washington Businesses reports 44% of surveyed business owners are considering moving their homes out of Washington to avoid the new tax burden. That’s not a rounding error. That’s a warning flare.

Even Jed Fowler, a former irrigation company chairman who initially backed the income tax, faced such intense backlash from customers that he stepped down and publicly apologized.

When business owners, AI leaders, and now the nation’s leading financial newspaper are waving red flags, maybe the problem isn’t messaging.

Maybe it’s the tax-and-spend agenda itself. Read more at the Wall Street Journal.

“Millionaires’ Tax”? Not If You’re in Construction

In a new op-ed, Jeff Tiegs, president of the Associated General Contractors of Washington and Lincoln Construction, argues that Senate Bill 6346 — marketed as a “millionaires’ income tax” — would hit small and mid-sized construction firms where it hurts most: cash flow.

Tiegs explains that most construction companies are pass-through entities like LLCs and S corporations. Income flows onto the owner’s personal return, even when that money is actually operating capital needed for payroll, equipment, bonding, and materials.

Construction is cyclical and low-margin. Income often spikes when a major project closes — but that doesn’t mean there’s a pile of idle cash sitting around. It often means the company is preparing to fund the next job while still waiting on payments and retainage.

Under SB 6346’s proposed 9.9% tax on income above $1 million, that temporary spike could trigger a large tax bill — either at the entity level or through the owner’s personal return. Either way, Tiegs argues, it drains working capital that contractors rely on to meet payroll and secure bonding capacity.

His warning: when working capital shrinks, bonding shrinks. When bonding shrinks, firms can’t compete for bigger projects. Hiring slows. Growth stalls. Minority- and disadvantaged-owned firms with tighter margins are hit hardest.

In short, Tiegs says the proposal doesn’t distinguish between personal wealth and business operating cash. For construction firms, he argues, this isn’t a tax on “millionaires.” It’s a tax on survival. Read more at Center Square.

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