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:

• HB 2100 (Scott, D-43) - creates a payroll tax on 5% of salaries above $125,000 for companies that gross more than $5 million, had employee wages more than $7 million in the previous year and have more than 20 employees.
• SB 5796 (Saldaña, D-37) - creates a payroll tax of 5% on salaries of $189,371 or more against the portion of salary above the Social Security wage limit for employers with more than $7 million in payroll expenses.
• HB 1320 (Street, D-37) - increases taxes 10-12%  on certain businesses.
• HB 1560 (Reed, D-36) - creates a new tax on health care entities based on the salaries of their executives.
• HB 1785 (Doglio, D-22) - imposes a surcharge on certain companies based on the salaries of their executives.
• HB 2098 (Reed, D-36) - eliminates the $75 million cap on the advanced computing surcharge, increasing the tax on tech companies. 
• HB 1921 (Fey-D, 27) - establishes a road usage charge.
• HB 1334 (Pollet, D-36) - raises the property tax growth limit
• HB 1870 (Zahn, D-41) - allows counties to impose a new property tax
• HB 2116 (Bergquist, D-11) - increases schools’ local levy property tax ability by raising the cap on the max value a home can be taxed for school purposes.
• HB 1840 (Peterson, D-21) - allows counties to impose a local real estate excise tax.
• HB 2027 (Berg, D-44) - imposes a new real estate transfer tax of up to 3% on the sale of certain homes.
• HB 1702 (Wylie, D-49) - allows counties to impose an additional 3% tax on utilities. 
• HB 2046 (Berg, D-44) - capital gains.
• HB 1607 (Stonier, D-49) - adds a 10-cent per-beverage container tax.
• SB 5576 (Lovelett, D-40) - imposes a new sales tax on Airbnb, VRBO, and other short-term rentals homes.
• HB 2442 (Berg, D-44) - allows counties and cities to impose additional excise taxes on real estate sales (up to 0.25%), Expands existing authority for counties and cities to impose up to a 0.5% REET dedicated to affordable housing projects. New authority for counties to impose utility excise taxes (up to 3%) on utility businesses in unincorporated areas. Enables cities/counties to adopt a local sales/use tax (0.01%) to fund services such as childcare, perinatal support, youth services, workforce supports, shelter/rental help, and transportation for clients. Modifies existing local sales/use tax authority for housing needs, with priorities for affordable housing, behavioral health facilities, and related support services.
• SB 6093 (Saldaña, D-37) - creates a new state excise tax on large companies’ payroll expenses above a high-wage threshold in order to fund state services that may be adversely impacted by recent federal budget changes.   

​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. ​

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: 

• Nine of Washington State’s twelve elected representatives 

• Canadian Embassy officials 

• The U.S. Chamber of Commerce 

• Regional partners from Spokane, Seattle, and Portland ​​​

• Protecting Medicaid and Medicare, especially with federal proposals that would disproportionately affect rural and lower-income districts, including Washington’s own. Congressman Dan Newhouse highlighted that 40% of his constituents rely on Medicaid and the need to protect the program.  
• Maintaining and expanding critical infrastructure funding through reauthorization of the Surface Transportation and Coast Guard bills—Congressman Larsen called a “partnership in a sea of partisanship”. Leaders agreed: infrastructure means jobs and any delay places shovel-ready projects and economic growth at risk. 
• Federal permitting reform, with business and energy leaders stressing the need to modernize bureaucratic processes to unleash clean energy innovation and broadband expansion. 

​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: 

• Preparing the region for 40% population growth by 2050 with expanded transit options and housing flexibility. 

• Green economy job pathways, including waste-to-profit models, clean fuels, and partnerships like the Blair Waterway project with the Puyallup Tribe, which will create over 50 union jobs. 

• A “skills-forward” approach to workforce development that prioritizes earn-while-you-learn programs and leverages institutions like the Eastside Training Center, JBLM, and the Tacoma Anchor Network 

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: 

• Federal permit reform as a prerequisite for clean energy buildout 

• Expanded support for green economy job pathways and smart grid investment 

• Recognition of the maritime sector’s national security role, including Tacoma’s Blair Waterway deepening and the Port’s collaboration with the Puyallup Tribe to bring 50+ union longshore jobs online 

​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: 

• Eddie Bratko, MultiCare Health System 

• Eric Johnson, Port of Tacoma 

• Christine Nhan, Puget Sound Energy 

• Ryan Wheaton, Pierce Transit 

• Rich White, The Boeing Company 

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. ​

The 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:

• A clear alignment with the Chamber’s mission and values, including a dedication to fostering a thriving business environment.
• A demonstrated interest in public service and a strong desire to engage in leadership roles within the Tacoma-Pierce County region.
• A proven track record of supporting business interests, advocating for economic growth, and contributing to the local business community.

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.

Jessica 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.

“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!

The vision of the Tacoma-Pierce County Chamber is to make the South Sound the most equitable, inclusive, and thriving place to do business in Washington State. By fostering a pro-business environment, we aim to provide businesses in the South Sound with advocacy efforts that safeguard the rights of business owners, stimulate economic growth, increase our private sector workforce, and improve the overall business climate.
 
This legislative cycle, we must have a united business community voice at the state capitol. A strong presence will ensure our region’s unique needs are heard and addressed, laying the groundwork for sustainable growth and a thriving economy.

2025 Legislative Goal

Improve the business climate, grow businesses, and create private sector jobs in the South Sound
 

Top Legislative Priorities
​

• Protect the Puget Sound Gateway, Connecting Washington, and Move Ahead Washington transportation packages and existing incentives to help meet our economic development needs. These investments are critical for keeping goods moving, connecting communities, and supporting South Sound businesses.
• Support legislation to achieve Washington’s BEST Manufacturing Act, SHB 1170 (2021 Legislative Session), “goal of doubling the state’s manufacturing employment base, the number of small businesses, and the number of women and minority-owned manufacturing businesses” by 2031 through strategic workforce development assistance programs, tax incentives and business growth.
• Support legislation that protects small businesses from new taxes and fees like gift card sweeps and delivery taxes.
• Support policy solutions to the housing shortage, like rental assistance funds, while avoiding policy choices that discourage housing development like price and market controls.
• Improve public safety for our community’s businesses, their customers, and their employees.

 
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Take Action on the Hill
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As a member of the South Sound business community, your voice is essential to shaping the policies that impact our region. Join us in advocating for a stronger business climate by participating in Chamber events, connecting with your legislators, and staying informed about our legislative priorities.

For questions regarding the Chamber and its advocacy efforts, please contact David Schroedel, Executive Vice President, or Ryan Spence, Program Director for the Manufacturing Industrial Council.
 
Together, we can make the South Sound the best place to live, work, and do business.

The Tacoma-Pierce County Chamber (TPCC) held its annual Horizons Economic Forecast at the Greater Tacoma Convention Center in downtown Tacoma on Wednesday, January 29, 2025.

Rising with the sun were more than 400 people in attendance. The agenda was set for attendees to learn more about the 2025 economic projections nationally and for Pierce County. Attendees began the morning by networking during Coffee Connections sponsored by Commencement Bank; tehaleh; Virginia Mason Franciscan Health; and educational organizations: Bates Technical; Tacoma Community; Clover Park Technical; and Pierce College, before they were seated for breakfast. Formal programming kicked off with a literal bang via a performance from the talented youth of Lincoln High School Drumline.

Over a seated breakfast guests heard from a handful of speakers including Congresswoman Marilyn Strickland; Congresswoman Emily Randall; Port of Tacoma Commissioner Position #2 Dick Marzano; Pierce County Executive Ryan Mello; Neal Johnson, Ph.D. of Sound Resource Economics; and Keynote Speaker Angelo Kourkafas, CFA® Senior Strategist, Investment Strategy at Edward Jones. Following opening remarks and insights, Tom Layson, Managing Editor & Producer-Host of Northwest Now, KBTC Public Television, led a Q&A with Mr. Kourkafas and Dr. Johnson regarding pressing economic issues that face the region and nation.

The event featured emcees Andrea Reay, President and CEO of the Tacoma-Pierce County Chamber, and Kierra Phifer, Board Chair for the Chamber and Public Engagement Manager Northwest for DoorDash. David Schroedel, Executive Vice President of the Chamber gave a heartfelt tribute to Dr. Bruce Mann, a beloved Economics professor at the University of Puget Sound who passed in October 2024 and contributed over the past several decades to the community and Horizons as an expert and teacher.

Guests received a copy of the Pierce County Economic Index Report for 2025 at the event. This report is a pivotal tool for understanding the county's economic health and prospects. The report, authored by Dr. Johnson, highlights a mix of growth and challenges alongside trends in GDP, labor markets, housing, and retail sales, while forecasting moderate growth and ongoing challenges for key sectors in 2025.

“This PCEI Report gives our members the insights they need to navigate the year ahead with resilience while acknowledging the headwinds still facing Pierce County. While we’re seeing progress in personal income and job creation, challenges in housing affordability and retail spending underscore the lingering effects of high interest rates and inflation,” said Andrea Reay, President & CEO, TPCC. “We hold a cautiously optimistic outlook for Pierce County. From job creation to housing affordability, this report helps our community take informed steps toward building a stronger, more equitable economy. Our commitment is to ensure that businesses—big and small—have the tools to succeed.” ​

If you have not already filled out our post event survey, please do so. You may find the survey available online here.

We are always looking to expand what we have to offer Pierce County as we strive to make the South Sound the most equitable, inclusive, and thriving place to do business in Washington State.

Thank you to everyone who spent their morning with us. We hope to see you at our next event soon!​

As Pierce County continues its trajectory, businesses, policymakers, and residents must focus on fostering resilience. Investments in education, infrastructure, and affordable housing will be critical to overcoming challenges along with monitoring federal policies on interest rates and tariffs, as these factors significantly impact the county’s economic outlook. 

The Tacoma-Pierce County Chamber invites community members, stakeholders, and business leaders to explore the full Pierce County Economic Index Report, available on the Chamber’s website. ​

On December 18, 2024, more than 350 business, nonprofit, and community leaders gathered to celebrate the season and strengthen the ties that bind us together at our annual cocktail party honoring elected officials. This year's reception was a dazzling evening of connection and celebration.

Guests joined us at the iconic LeMay-America's Car Museum, where they enjoyed delicious food and beverages, stunning ice sculptures, intricate paper cranes, and captivating calligraphy artistry. The ambiance was festive and elegant, providing the perfect setting for meaningful conversations and new connections.

During the VIP Hour, Chamber President and CEO Andrea Reay and Board Chair Kierra Phiffer recognized the remarkable contributions of exiting Pierce County Executive Bruce Dammeier. In her remarks, Reay highlighted Dammeier’s dedication to the community, emphasizing his role in fostering growth and collaboration throughout Pierce County.

The evening was made even more special by the vibrant mix of leaders in attendance, including prominent public officials, business executives, and nonprofit champions. The opportunity to mingle, share stories, and celebrate the season together showcased the strength and unity of our community.

A heartfelt thank you goes out to our incredible sponsors for their generous support and to everyone who attended and contributed to the event's success. Your participation and enthusiasm make events like these possible.
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As we welcome the new year, we encourage you to stay engaged with the Chamber’s upcoming events and initiatives. Together, we will continue to build a thriving community for all.