GSI Joins nonpartisan business coalition focused on addressing the state’s budget challenges
Imagine you’re running your operation day in and day out, working hard to build your brand, hire local employees, and stay afloat amid rising costs. But now, Washington’s budget shortfall is threatening your future. The state’s financial challenges have left small businesses, large corporations, and entrepreneurs alike at risk of even higher taxes and less opportunity for growth. The time to act is now.
How Unchecked Spending Threatens Small Business Growth
Washington’s tax revenue has increased significantly, from $17 billion in 2013 to $35 billion in 2023, but spending has far outpaced income. For small businesses, corporations, and entrepreneurs alike, this budget imbalance signals higher taxes and an uncertain financial future.
Unchecked spending threatens business growth because it leads to the risk of tax hikes, regulatory changes, and a less predictable financial environment. As businesses, large and small, already struggle with inflation and rising operational costs, any additional fiscal burden will only make things worse. For small businesses, this often means higher overhead, fewer resources to hire staff, and less money to reinvest in their business. For larger corporations, it may mean postponing expansion plans or cutting back on hiring.
The Rising Cost of Doing Business in Washington
Washington’s tax revenues have been historically strong, doubling from $17 billion in 2013 to $35 billion in 2023, with no decline unlike 20% of other states. The state collected $11.6 billion more in the 2021–2023 biennium than in the previous one, and projections indicate an additional $10 billion increase by 2029.
Despite record-breaking revenues, the state faces a $12 billion budget shortfall, largely driven by a 40% increase in spending over the last two budget cycles. Small business owners are already grappling with rising operational costs and regulatory burdens, while larger corporations need predictability to plan for future growth. Entrepreneurs, looking to launch the next big idea, are concerned about tax policies that could stifle innovation.
A series of budget decisions have contributed to this deficit, including the allocation of $16 billion in federal relief funds and a $2 billion withdrawal from the rainy-day fund in 2021, despite no immediate budget crisis. Additionally, past legislatures have passed funding mandates set to take effect in future biennium’s, leaving incoming lawmakers with limited options to address the growing deficit.
Why Tax Competitiveness Matters for Economic Stability
With the cost-of-living crisis worsening, fiscal responsibility must be the top priority in the upcoming legislative session. GSI and Enterprise Washington urge lawmakers to align spending with revenue before considering any new tax increases. Communities across the state are already grappling with rising living costs, and higher taxes will only further burden struggling businesses and consumers facing inflation. As it stands, the Tax Foundation ranks Washington 45th in State Tax Competitiveness for 2025—a clear indicator that current policies need urgent reform.
A Nonpartisan Solution: Business Leaders Taking Action
Greater Spokane Inc. (GSI) has joined a nonpartisan business coalition focused on addressing the state’s budget challenges. GSI values collaboration with community partners to drive sustainable economic growth. This coalition supports data-driven policies that serve our communities and promote a thriving economy.
What Does This Mean for Your Business?
As a leading voice in Spokane business advocacy, GSI is committed to ensuring business-friendly policies that support sustainable economic development in the Spokane region and throughout Washington. Business owners must stay informed and engaged. Policy changes now will shape the future of Washington’s economy.
Join the Movement: Advocate for Smart Budget Reform
Want to stay ahead of the latest budget decisions affecting your business? Watch for future GSI Legislative Updates as we work through the 2025 session and checkout budgetbreakdown.org. Contact your representatives and tell lawmakers how it impacts your business. If you’re not a member partner of GSI, we invite you to join us and advocate for smart budget reform today!
___________________________________________________________________________________
Related Articles
Greater Spokane Inc. 2025 State Legislative Agenda
Supporting HB 1114: GSI’s Role in Strengthening Health Care & Military Support in Spokane
Legislative Update Week 4: February 3-7, 2025
Call for Submissions: Help Shape GSI’s Federal Agenda for 2025
