Dear Colleagues,

Please see below for report from our lobbist Sara on the most recent Legislative session. We had several wins this year, thanks to our collective efforts!

If you have suggestions, questions, or feedback about our legislative priorities, please let me know! If you are interested in taking more action as an organization, I welcome your insights and efforts! During times like these, we need each other.

With gratitude,

Ben Packard, MSW LICSW

WSSCSW Legislative Chair

Legislative Report to the Membership of WSSCSW 

by Sara Stewart

The legislative session concluded on April 27 after being one of Washington's most contentious and whirlwind sessions in years. Heading into the session with a budget shortfall, a supermajority in all three chambers, and a handful of controversial bills on the table, lawmakers were on edge from the beginning. As time passed, tensions did not lessen, and while the priority bills for the Democrats did pass, the turmoil detracted from many other topics this session. A total of 2,444 bills were introduced, and the governor has until May 20 to take action on all passed legislation. 

Behavioral Health Legislation Successes

 HB1234 - Concerning the mental health counselors, marriage and family therapists, and social workers advisory committee. Signed by the Governor.

 

HB 1432 - Improving access to appropriate mental health and substance use disorder services (Medical necessity.) Delivered to the Governor. 

 

SB 5083 - Ensuring access to primary care, behavioral health, and affordable hospital services. Delivered to the Governor.

 

HB 1813 - Concerning the reprocurement of medical assistance services, including the realignment of behavioral health crisis services for medicaid enrollees. Delivered to the Governor.

 

SB 5579 - Prohibiting health carriers, facilities, and providers from making any public statements of any potential or planned contract terminations unless they satisfy a legal obligation. Delivered to the Governor.

 

Financial Overview and Healthcare Investment

The legislature approved a two-year budget of $77.8 billion, featuring significant funding for mental health services. Key investments include $270 million for behavioral health initiatives and $200 million specifically aimed at fentanyl and substance-use treatments. This budget strikes a careful balance between financial limitations and critical healthcare needs, particularly as hospitals contend with substantial financial challenges following a $1.2 billion loss in early 2024.

 

Interim and 2026 Priorities

 

HB 1589  - Contracting Fairness

Despite the efforts of over 20 provider groups, we could not pass this top-priority bill. The conflict between the carriers and the coalition leaders grew intense and contentious. Ultimately, personality clashes and the frustration of key lawmakers over the group's inability to reach an agreement led to the bill's downfall.

 

Over the interim, we will determine whether to continue collaborating with the large coalition or to pursue an independent legislative bill to tackle this issue. Although each provider group shares a common goal, they have varying priorities regarding the final bill's structure. The needs of behavioral health providers are distinct from those of the other groups, which suggests that advancing our own bill could be the best path to success. We have already had conversations with the carriers, OIC, and other stakeholders to plan for 2026. 

 

HB 1287 - Addressing the disclosure of health information for care coordination.

WSSCSW, WMHCA, NACW and other behavioral health associations fought against the passage of this bill. However, due to timing, the bill passed without any amendment to address potential concerns regarding privacy and information sharing. We can propose a new bill in 2026 to address our concerns, but we will be working with the Health Care Authority over the summer to determine if this is a necessary step. 

Washington State 2025-27 Budget Overview

The Washington State Legislature has approved a landmark $78 billion budget for the 2025-27 biennium, crafting a complex fiscal response to an anticipated $16 billion shortfall. The budget package, which passed with strong Democratic support but faced unified Republican opposition, signifies a substantial shift in state fiscal policy and tax structure.

The legislature's solution combines $5.9 billion in spending reductions with $9.3 billion in new revenue sources over four years. Key revenue generators include increased business and occupation taxes for large corporations, a new electric vehicle credit tax, expanded sales tax on tech services, and higher capital gains taxes on wealthy investors. Transportation funding will be partially supported by a 6-cent per gallon gas tax increase, which includes built-in annual increases of 2%.

Major funding priorities include enhanced support for K-12 special education and a $100 million law enforcement grant program championed by Governor Bob Ferguson. The package also includes a $7.6 billion capital budget and a $15 billion transportation budget.

The budget process revealed political tensions, especially between Governor Ferguson and Democratic lawmakers. Although Ferguson effectively pushed for law enforcement funding and opposed a proposed wealth tax, he encountered backlash from his own party for proposing state worker furloughs and for not firmly backing specific Democratic priorities. In spite of these conflicts, compromises were achieved on most significant issues.

Business groups have expressed strong concerns about the tax increases, particularly the additional surcharges on businesses with over $250 million in taxable state income, arguing that these changes could hinder economic growth and innovation. However, Democratic leadership maintains that the budget strikes a necessary balance between protecting vulnerable populations and upholding fiscal responsibility.

The final budget passed along partisan lines, with votes of 52-45 in the House and 28-19 in the Senate, reflecting differences between the parties regarding state spending and revenue generation.