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As Sound Transit looks to balance rising costs for ST3, we need more than ever to hold them accountable to their commitment to connect the spine to the Tacoma and the South Sound.
AUTHOR: TOM PIERSON, INTERIM PRESIDENT & CEO  The 2026 Washington State Legislature adjourned March 12th after passing 267 bills. The session delivered significant new costs and regulatory pressures for businesses. Budget
The 2025-27 supplemental operating budget increases the total spending amount for the biennium to $80.2 billion – an increase of $2.4 billion for the biennium. This includes a $880 million transfer from the rainy day fund, marking the state’s continued increase in spending. Over the past decade, state spending has increased by 116%, far exceeding the inflation rate of 34% in the same time period. This trajectory highlights the ongoing concerns about the long-term sustainability of the state’s budget and the likelihood of continued fiscal pressures in future cycles. In direct harm to businesses, Governor Ferguson decided to veto $500,000 in the state’s supplemental operating budget that was dedicated to combating organized retail crime. This is a major setback for the business community, our employees, and our customers. The business community has consistently talked about the impacts of retail crime, underscoring that dedicated state investments like this are not optional - they are essential to maintaining public and operational safety. This funding is not new; in 2024 the legislature provided $1 million to launch the now successful pilot program in King, Snohomish, and Spokane counties, which focused on coordinated responses to organized retail crime. This funding delivered measurable results, including 402 program-driven law enforcement responses, and generated 5,868 organized crime reports, among many other measurable outcomes that helped businesses. Eliminating this investment is discouraging to the business community when we are asking for meaningful partnership, support, and action. Without additional funding, businesses are left without support they desperately need. While we understand the state is working under budget constraints, if the state is serious about protecting local economies, supporting frontline workers, and maintaining safe retail spaces, prioritizing this type of funding must be a priority. We look forward to working with legislators to restore it. Income Tax The legislature passed the first income tax, under the guise of it being a “millionaires’ tax.” This statewide income tax impacts households with income exceeding $1 million dollars – which is $500k/year for people filing jointly. Income taxes, coupled with other anti-business and anti-economic development policy decisions, make Washington less competitive and drives residents and businesses out of state. This is especially harmful when Washington already ranks near the bottom nationally in tax competitiveness and overall business climate. The Legislature’s rationale for the tax is to generate additional revenue to make up for the current 2025-27 budget deficit, which sets itself up to expand the tax further in 2027-2029 as they continue to fail in balancing the budget with new revenue. But to be clear, Washington does not have a revenue problem - it has spending and fiscal management priority and policy problems. Data Centers In a devastating blow to businesses, ESSB 6231 was passed and signed by the Governor, repealing a sales and use tax exemption for the refurbishing of data centers. This tax exemption is meant to attract these facilities to Washington since they bring millions in investments, create lots of local jobs, generate additional tax revenues, and promote economic development. These exemptions have been particularly critical for Pierce County as our data center has brought high paying job opportunities and generated millions of tax revenue. Transportation The legislature did approve a $16.6 billion transportation package. The package emphasizes additional preservation and maintenance of existing infrastructure including, road and bridge repairs, ferry system preservation, highway safety improvements and more. In addition, it is estimated this package could support up to 30,000 jobs statewide. Veterans In a big win for our veteran community, the Governor signed ESHB 2534 which promotes education stability for children of military families. Our team advocated for this bill, and we are happy to see the Legislature’s support for our veterans and military families. The 2026 Legislative session, with few exceptions, proved to be a challenging one for Washington’s business community, marked by increased costs, new regulatory pressures, and continued spending growth without any long-term solutions. We will be closely monitoring the impact of these policies in the months ahead while continuing to advocate for a more competitive, sustainable economic and fiscal environment by supporting our local business community through the challenges ahead. My question for you, when you interact with your legislative members can you ask them this simple question: What exactly did they do for your business to make the South Sound the place for business?  In mid-February, the Chamber's advocacy team took a group of members to Olympia to advocate for the business community at the Chamber's annual Legislative Advocacy Day. The group included Chamber staff, board members, small business owners, and community members, and met with a variety of Representatives, including Representative Richards (District 26), Representative Valdez (District 26), Representative Keaton (District 25), among others. The team met with these Representatives individually to give Chamber members the opportunity to share their perspectives on proposed legislation and to strengthen relationships with their elected officials. These conversations allowed the group to highlight the real-world impact of proposed policies and ensure that the business community's voices were effectively represented. While down in Olympia, several legislative priorities were advocated for, including:
Meeting directly with lawmakers reinforced the importance of civic engagement and collaboration between the public and private sectors. Advocacy Day serves as a reminder that meaningful change begins with open dialogue, strong relationships, and a commitment to representing our community’s interests. The advocacy team is grateful for the opportunity to engage in these important conversations and will continue to advocate for policies that support economic growth and opportunity in the Puget Sound. Author: Jennifer English | Program Director, Spaceworks Tacoma Last week, I had the privilege of stepping out of my usual role at Spaceworks Tacoma and into the halls of our state capital. I joined a coalition of passionate advocates for Arts, Heritage, and Science Week 2026, spending the day on February 4th representing Legislative District 27 and Pierce County. It was inspiring to stand alongside fellow champions of the creative sector, including partners from ArtsWA, Hilltop Artists, and Arts Impact. Together, we met with legislators to make one thing clear: the arts are not just an amenity; they are a vital driver of small business, tourism, and community identity in Washington state. While celebrating the creativity that defines our region, we focused on two critical legislative issues that will impact the creative economy here in Pierce County and beyond: 1. Protecting Non-Profits and Presenters (ESSB 5814) We advocated for clarity regarding ESSB 5814, a bill concerning sales tax on live events. It is crucial that we define which activities are not considered taxable live presentations. Getting this definition right ensures that non-profit arts organizations and presenters can continue to operate without being saddled with unintended tax burdens, keeping our cultural spaces accessible and sustainable. 2. Defending ArtsWA Grant Funding We urged lawmakers to protect ArtsWA's grant funding. Currently, there is a proposal to cut $600,000 from their grant programs - nearly one-third of their entire capacity. These are the funds that flow directly back into our communities, supporting local creative programs, partnerships, and the organizations that make Pierce County a vibrant place to live and work. A cut of this size would significantly destabilize the ecosystem that relies on this support.
This experience was a powerful reminder that the work of Spaceworks extends far beyond Tacoma. Whether we are supporting small businesses, installing public art, or showing up in Olympia, our mission is to fight for the resources that help our communities thrive, inspire creativity, and fuel economic growth. I’m proud to have brought the voice of LD 27 to the conversation, ensuring our legislators understand that investing in the arts is investing in the economic and cultural future of our state. The first week of Washington’s 2026 legislative session highlights a fast‑moving and challenging environment, shaped by a $2.3 billion projected budget shortfall, intensified political pressures, and the early influence of the 2026 election cycle. Lawmakers are navigating urgent fiscal constraints, competing policy priorities, and potential new taxes and service reductions. Governor Ferguson’s proposed operating, capital, and transportation budgets, required by law to balance over four years, attempt to close the deficit through a mix of spending cuts and one‑time measures. These include drawing approximately $1 billion from the rainy-day fund, redirecting Climate Commitment Act revenues to general budget needs, and implementing nearly $800 million in agency reductions. Critics caution this approach may weaken long‑term climate and fiscal stability. A wide array of revenue proposals has been introduced, including new payroll taxes, expanded property and real estate taxes, excise taxes on utilities and consumer goods, surcharges tied to executive compensation, and increased taxes on nicotine, alcohol, firearms, and technology companies. While substantial, these measures will not generate funds quick enough to cover Washington’s immediate budget obligations. Following $8 billion in cuts last session, any further reductions will be even more difficult. The Legislature faces a dual challenge: addressing an urgent short‑term budget crisis while planning for a 2027–29 biennium that is also expected to bring significant fiscal strain. Already, revenue proposals are part of the biennium’s conversation, including the following:
These proposed taxes are in addition to many other proposed taxes on goods. You can look up any of these bills online here: https://leg.wa.gov. The Tacoma‑Pierce County Chamber is truly honored to support your efforts as we work to build a vibrant and resilient South Sound. Your success strengthens the foundation of our community, and with your leadership, we are not only advancing the South Sound economy—we are shaping a brighter, more promising future for all who call this region home. We are fighting for your business interests at all levels of government. Questions You can reach out to our advocacy team at [email protected] if you have any questions or would like to voice your concerns.
Veteran Public Servant and Regional Policy Leader Joins Chamber to Strengthen Business Advocacy and Advance Inclusive Economic Growth Across the South Sound.
At the 39th annual Washington-to-Washington, D.C. Conference, Pierce County leaders tackled pressing issues, such as trade, infrastructure, health care, and energy, with a unified voice.  The Chamber’s 2025 Washington-to-Washington, D.C. Conference (WA2WA) recently wrapped up with 42 Pierce County leaders, including business, civic, and elected officials, gathering in the nation’s capital for high-impact conversations and strategic collaboration. Now in its 39th year, WA2WA continues to be a cornerstone of South Sound leadership, creating meaningful opportunities to engage directly with federal policymakers, strengthen regional partnerships, build cross-sector relationships, and advocate for the issues that matter most to our community. Relationships matter—in business and in politics. Through this annual trip, we strive to cultivate and sustain authentic, lasting connections. These relationships are the foundation for true collaboration—empowering us to tackle shared challenges, champion pragmatic policies, and implement solutions that help the South Sound thrive both regionally and globally. Highlights from the Hill Over two-and-a-half days, our delegation met with a bipartisan group that included:
Key topics of discussion included:
Meaningful conversations also took place on U.S.-Canada relations, especially relevant given the Prime Minister’s visit to D.C. during the delegation’s time there. Senator Cantwell encouraged regional leaders to “keep going,” reinforcing the importance of export-driven growth and trade alliances. Congresswoman Marilyn Strickland shared insights on navigating a shifting political landscape while continuing to advocate for Pierce County. Meanwhile, Congressman Adam Smith talked about the difficulty of navigating national security in a rapidly changing international landscape. Everything from tariffs to international aid impacts our security and stability. Economic Resilience & Local Innovation Delegates also explored deeper themes around economic transformation. From maritime to manufacturing to nuclear innovation, there was shared urgency around:
University leaders and economic development officials alike emphasized the need for local control of funding, stronger public-private alignment, and doing what’s right for the next generation—especially as education equity, access, and online learning remain top-of-mind. These conversations helped shape a deeper, shared understanding of the challenges and opportunities facing our region. You can learn more about the Chamber’s advocacy efforts here. Energy & Innovation Frontiers A strong theme throughout the trip was economic resilience through innovation and energy transformation. From nuclear to maritime to digital infrastructure, the delegation heard repeated calls for:
Senator Cantwell also noted export growth under the Biden administration and the need for congressional authority over executive trade actions. Investing in Leadership and Community Alongside eight local elected officials, several Chamber board members joined the trip as attendees and sponsors:
We are grateful to our 2025 sponsors, whose generous investment made this experience possible: MultiCare Health Systems, The Port of Tacoma, Alaska Airlines, The Boeing Company, Regenerative Industrial, Lightcurve, TOTE Maritime Alaska, Pierce Transit, Seattle FIFA World Cup 2026, Puget Sound Energy, and Sound Transit. Looking Ahead to 40 Years As we continue building partnerships and advancing collective impact, the connections and discussions from this year’s WA2WA trip will continue to inform our work. They deepen our understanding of the South Sound’s diverse needs and the opportunities ahead. Beyond the policy briefings and Capitol Hill meetings, attendees also found time to connect over D.C.’s incredible culinary scene—strengthening relationships that will fuel continued collaboration. With more than 90% of attendees indicating they plan to return, the value of this long-standing tradition is as strong as ever. As we prepare for WA2WA’s 40th year, we’re inspired by emerging opportunities in transportation modernization, clean energy, workforce development, and federal procurement reform. These themes point to our region’s potential as a national model for collaboration, innovation, and inclusive economic growth.
To better understand how Pierce County businesses would respond when faced with new tax hikes, we surveyed businesses at the beginning of April. Over 40% plan to reduce payroll in response. This means fewer jobs, fewer hours, and fewer raises for workers. Another 30% plan to increase prices, effectively passing on the costs to consumers. A handful of businesses also planned to postpone investment or even move operations out of Washington State, something we’ve seen with businesses in other communities that have implemented significant business tax increases. The proposed tax hikes could not come at a worse time for business. Not a single business said they were “very confident” with the economic stability of our region, while a whopping 83% said they were “not confident.” This highlights the economic uncertainty felt as a result of a rapidly changing economy. Additional tax hikes under these conditions are clearly the wrong answer.  When we asked businesses how the State Legislature should solve the budget shortfall, 74% said solutions should be focused on reducing services to cut spending. This compares to the 7% who felt the solution should be focused on increased taxes.  Please let your legislators know the impact of the taxes on your business before they adopt the budget. Find their contact information here.
Johnston to Attend Candidate Academy on March 8, 2025, and Accelerate Her Path in Civil Service
As a long-serving staff member and community advocate, David has played a critical role in shaping the region’s business landscape, supporting economic growth, and fostering collaborative policymaking. The scholarship continues his legacy by empowering individuals who share his dedication to leadership and civic engagement. Selection Criteria: Identifying Future Leaders in AdvocacyThe David Schroedel Leadership and Advocacy Scholarship is awarded to an individual who exemplifies the Chamber’s core values and has demonstrated a commitment to civic engagement. Candidates for the scholarship are selected based on the following criteria:
By focusing on these parameters, the scholarship ensures that recipients are well-positioned to make a meaningful impact through the Candidate Academy program and in our community. Introducing the First Award RecipientJessica Johnston has been selected as the inaugural recipient of the David Schroedel Leadership and Advocacy Scholarship for their exceptional commitment to community leadership and advocacy. Johnston currently serves as the Director of Court House Square in downtown Tacoma. She also serves as an ambassador for the Chamber; on the Board of Director for the Downtown Tacoma Partnership as its Vice President & Treasurer; and as a Board Chair on the City of Tacoma’s City Events and Recognitions Committee. Johnson is passionate about many timely issues that our region faces, including government transparency and accountability, small business stability and growth, public safety, and mental health services. Through this scholarship, Johnson will gain access to valuable mentorship, training, and networking opportunities in the Chamber’s Candidate Academy taking place on Saturday, March 8, 2025. This program serves as a launchpad for emerging leaders, providing them with a deeper understanding of the civic landscape and the skills necessary to drive meaningful change. Fostering Future Leaders“The Tacoma-Pierce County Chamber is dedicated to cultivating leadership that strengthens our community,” said Schroedel. “By investing in individuals who are passionate about advocacy and public service, we are ensuring that our region continues to thrive. We congratulate Jessica on this well-deserved honor and look forward to seeing her impact.”
Johnson shares, "I am honored to have been awarded the David Schroedel Leadership and Advocacy Candidates Academy Scholarship, and I want to express my sincere gratitude to the Tacoma-Pierce County Chamber and the selection committee for their support. The Candidate Academy has equipped me with invaluable insights and resources that will elevate my leadership and advocacy efforts in Tacoma. I extend a special thanks to David Schroedel for his dedication to developing future leaders. This scholarship reinforces my commitment to public service, and I am excited to implement the lessons I've learned to drive meaningful change in our community. Thank you for this amazing opportunity!" Join us in celebrating Jessica Johnston and the future of leadership and advocacy in Tacoma-Pierce County! |
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