NEWSFLASH: Legislative Democrats ignore the advice of many and raise $12.5 billion in taxes just for the operating budget

Apr 27, 2025

Session ends with long debate on $77.9 billion operating budget

Watch Sen. Nikki Torres’ speech during the debate on the operating budget. Sen. Torres is the assistant budget lead for the Senate Republicans.

 

After long and heated debate, the majority passed the 2025-27 operating budget without a single Senate Republican vote.

The document, which was released Saturday for a Sunday vote, is more than 1,300 pages long and spends nearly $80 billion over the next four years.

Why didn’t Republicans vote for it? Because we proved that we could pass a budget that spent $2 billion less, didn’t raise ANY taxes and didn’t cut any services. Democrats chose a different path that we do not agree with.

This budget includes a tax increase that is the largest share of the budget of any tax increase since 1981-83. It’s the equivalent of a $2,000 annual tax increase on a family of four, each year for the next four years.

One item in the budget that we do agree with is the investment in hiring more law enforcement officers.

Additional details:

  • Spends $77.9 billion, including more than $4 billion in new spending
  • 8.2% growth over the last biennium
  • Over four years, costs taxpayers $12.5 billion in additional state and local taxes
  • Doubled co-pays for childcare assistance
  • Tripled the per-bed license fee for nursing homes
  • $100 new fee on marriage licenses
  • 38% increase in hunting and fishing licenses
  • 50% increase in accessing state parks
  • 50% increase in liquor license fees
  • $50 million reduction in dental care for low-income children and adults
  • Lowers payments to hospitals for their patients who are public employees

 

 

Final list of 2025 tax bills

 

The final numbers are in. The operating budget alone will cost you $12.5 billion in ADDITIONAL taxes Originally, Democrats proposed $21 billion in taxes, but thanks to pushback from the people, Republicans and the governor, that number dropped significantly. But not enough.

The Senate Republican budget wouldn’t have raised ANY taxes and would have made NO cuts to any services. The total tax bill for the increases will result in an average of $2,000 more per year for a family of four.

 

  • $1.6 BILLION: Property-tax increase through higher local levies and a return to inequitable funding “McCleary 2.0” (HB 2049)
  • $2.6 BILLION: Sales-tax increase that will make food, healthcare, prescription drugs and housing more expensive (SB 5814)
  • $5.6 BILLION: Expanded on consumers via a higher business and occupation tax (SB 5815)
  • $680 MILLION: Expanded income tax on capital gains and death tax (SB 5813)
  • $284 MILLION: New tax on storage units and more (SB 5794)
  • $281 MILLION: Tesla Tax – taxes certain manufacturers of EVs, but only applies to Tesla at the moment (SB 5811)

 

PLUS…

  • 50% increase in the Discover Passes
  • 38% increase in hunting & fishing licenses
  • 50% increase in liquor licenses

 

 

Capital budget

 

 

This budget pays for various maintenance and construction projects around the state, such K-12 school facilities and conservation projects.

It includes:

  • $7.6 billion in total spending
  • $781 million for various housing programs
  • $975 million on projects for early learning and K-12 education
  • $280 million for water projects and hatcheries
  • $110 million for fish conservation efforts
  • $282 million for a new 350-bed Western State Hospital
  • $1.2 billion for higher education projects

 

 

Transportation budget