East King County Chambers Convene on Budget Headwinds, AI Policy, and 2025 Legislative Priorities

On September 25, the East King County Chambers Coalition (EKCC) met to align on budget realities, AI policy, and updated position papers ahead of the 2025 session. Max Martin of the Association of Washington Business (AWB) briefed the group on a tightening fiscal outlook and likely policy fronts. Chamber leaders from across the Eastside highlighted near-term transportation and housing priorities with direct impact on employers and workers. 

State Budget Outlook: Fiscal Strain and What Comes Next 

Participants opened with sober budget assessments and the likelihood of a cuts-focused session. AWB noted multiple pressure points converging at once, even after last session’s significant revenue actions. These include the following:  

• Forecast change: $1.6 billion in reduced revenue from the most recent budget assumptions. 

• Digital advertising tax risk (SB 5814 case): $475 million over four years, according to the Department of Revenue, if the challenged portion is invalidated. 

• Tariff scenarios (OFM analysis): $2.2 billion projected reduction to the state general fund by 2029. 

• Rising liabilities (DES): one-time $570 million request; potential gap of $1.3 billion by 2027 and $2–3 billion by 2029. 

• Last session: $9.4 billion revenue package termed the largest tax increase in state history. 

Advocacy Strategy: Connect Policy to Local Impact 

Chamber leaders emphasized the importance of highlighting employer stories, regional competitiveness, and community impacts, such as:  

• Stressing the ripple effects of major employer decisions on nonprofits, community services, and the social safety net. 

• Providing legislators with real-world case studies that show how policy affects investment and jobs. 

Using existing tools and data to link policy outcomes directly to economic growth and community well-being.

EKCC position papers: what we’re drafting for 2026 

We’re early in the drafting process for the Coalition’s Position Papers, so won’t dive into details just yet. As a preview, EKCC is organizing its 2026 agenda across a concise set of issue areas, including:  

• Budget & Economic Competitiveness: sustainable revenues, predictable costs, and regulatory efficiency. 

• AI & Data Policy: practical guardrails, workforce readiness, and innovation pathways. 

• Housing & Land Use: unlocking supply, predictable timelines/costs, and TOD feasibility. 

• Transportation & Mobility: freight and commuter reliability (e.g., SR-18), employer transit access, EV/AV readiness. 

• Public Safety: staffing, training capacity, and community-business impacts. 

We’ll refine these papers with case studies from Eastside employers to keep the focus on real-world outcomes for jobs, investment, and community services. 

Housing and Land Use: Practical Fixes to Unlock Supply 

This session, we are keeping a steady focus on housing supply, predictability, and costs. Coalition members stressed the need to:  

• Support a rental market that balances the interests of both property owners and tenants. 

• Align fees and financing with the development timeline to reduce upfront cost burdens. 

• Provide flexibility in mixed-use areas by allowing ground-floor residential where appropriate. 

• Streamline environmental review and eliminate duplicative steps for multifamily projects. 

The Coalition also acknowledged recent positive steps at the state level that help improve housing feasibility, including reforms to condominium rules, historic landmark processes, and minimum parking standards.