EVERETT — Snohomish County state legislators on Tuesday recapped the recently concluded 2026 legislative session during a virtual forum, spotlighting substantial investments in transportation infrastructure while offering sharply different assessments of a new income tax on high earners.
The Economic Alliance of Snohomish County hosted the discussion with Senators Marko Liias (D21–Edmonds) and Keith Wagoner (R39–Sedro-Woolley), and Representatives Sam Low (R39–Lake Stevens) and Julio Cortez (D38-Everett).
Budget pressures shaped much of the work in Olympia in 2026, where lawmakers faced a $2.3 billion deficit (or 3.5% of 2025-2027 biennium budget) at the beginning of session and passed an additional $2 billion supplemental spending plan where lawmakers utilized roughly $880 million from the state’s “rainy day” fund and siphoned approximately $4 billion in surplus funds from the state police and firefighter pension funds to replenish state reserves in the coming years.
Transportation emerged as a point of broad agreement among the legislators. Sen. Liias, who chairs the Senate Transportation Committee, pointed to an additional $1.5 billion committed to maintenance and preservation of roads, bridges and the ferry system–fulfilling a goal by Gov. Ferguson earlier this year. Lawmakers also advanced planning for replacement of the U.S. 2 trestle.
“We made an historic $1.5 billion additional investment in maintenance and preservation, which I think is going to be really critical,” Liias said.
The Transportation Package included $45 million to help local governments repair flood damage from the the historic back-to-back atmospheric rivers last year, when more than 50 square miles of Snohomish County sat underwater. The package also funded safety improvements and additional state patrol troopers after traffic fatalities throughout the state, Liias said, hit a 30-year high.
Rep. Low, who is the assistant ranking member on the House Transportation Committee, echoed those priorities and added that repeal of the aircraft tax stood out as a win for local aviation. The change came after businesses reported losing jobs and aircraft to other states.
“That was a highlight to get that fixed,” Low said.
On housing and growth, Low highlighted measures to boost supply, including SB 6026 that provided allowances for residential development in certain commercial zones with a roughly 40 percent residential mix. The session also approved smaller elevators in three-story buildings to cut costs and improve access for seniors.
Low’s rural accessory dwelling unit bill, HB 1345, which is awaiting the governor’s signature, will help families in the 39th District add housing add affordable housing options for family members, seniors, or workers without needing large new infrastructure.
Rep. Cortez, who serves on the House Technology, Economic Development and Veterans Committee, focused on steps to guide the rapidly advancing AI sector.
“We looked at quite a bit of legislation this year around the AI sector,” Cortez said. “We’re trying to take some steps to ensure we balance that innovation with protecting Washingtonians at all levels.”
Lawmakers passed bills (HB-1170) requiring provenance (origin/source) data in AI-generated content, notifications when people interact with AI systems and HB-2225, precautions for AI chatbots.
Cortez also described progress on affordability, including a statewide low-income energy assistance program and eased regulations to expand childcare access for working families.
Sen. Wagoner praised ongoing investments in firefighting aviation assets and a new law bringing the Civil Air Patrol under the state military department for emergency response.
Facing a deficit, the Legislature passed a tax on incomes above $1 million that affects 0.5 percent of residents statewide. Cortez and Liias paired it with relief for small businesses through a dramatic expansion of the B&O tax exemption and sales tax exemptions on essentials such as diapers and personal care items. The new tax also funds expanded free school meals for all K-12 students, fulfilling a 2025 promise by Governor Ferguson.
Sen. Liias said the measure helps shift the tax burden away from working families and small businesses. Rep. Cortez added that it supports working families while making the state more competitive by aiding small businesses.
Sen. Wagoner and Rep. Low took the opposite view. Both warned that the tax, along with prior cost-of-living increases, could prompt businesses to expand elsewhere or relocate such as Starbucks which recently announced opening a headquarters in Nashville, Tennessee.
“I think from my perspective, it’s been a full-on assault on small businesses from Olympia,” Low said.
Wagoner predicted an initiative to repeal the tax and court challenges ahead. He also raised concerns about the impact on agriculture and manufacturing.
Looking forward, the lawmakers anticipated continued focus on affordability in housing, childcare and health care, as well as completing key transportation projects like the U.S. 2 trestle and State Route 522.
Liias and Cortez stressed the need to create jobs and support key industries such as aerospace and clean energy. Wagoner warned that budget pressures are most likely to return without greater fiscal discipline by the majority party.
Author: Mario Lotmore
