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This condensed transcript is a summarized version of the original podcast episode and is intended for informational purposes only. It may omit portions of the full conversation for clarity and brevity. For the complete discussion, please refer to the full podcast recording.
Tracy Ellis: It’s The Elephant in the Dome, the official podcast of the Washington State Senate Republican Caucus. I’m Tracy Ellis, along with State Senator John Braun, the Senate Republican Leader. There’s a lot of talk about the economy, but we don’t often focus on what’s happening here in Washington State. It’s certainly important to legislators. So, Senator Braun, how would you describe the economy right now in Washington?
Senator John Braun: It’s really hard to pin down. There are a lot of factors, but I’d say we’ve plateaued—and there’s anecdotal evidence we’re drifting downward. We’ll know more with the next revenue forecast. In the last session, we saw that plateau and didn’t get the growth we’ve historically seen. Our state usually sees about 4.5% economic growth, but now it’s closer to 1%. That’s why we came into the session with a big shortfall—spending was based on anticipated growth that didn’t materialize.
Tracy Ellis: Why is construction slowing down, especially when there’s such a demand for housing?
Senator John Braun: We’re in a housing crisis. We don’t have enough homes for our population, and prices are high statewide. Many young people can’t afford their first home. Yet construction has slowed, starting last year. State economists cite this as a major factor in declining forecasts. The reason? We’ve regulated construction to the point where it’s too difficult and expensive to build. Builders are leaving the state. We’re hundreds of thousands of homes behind, and we need another million by 2040. The state can’t build all that—we need to create a climate where builders can succeed. Unfortunately, the Democratic majority has only made marginal tweaks and even added rent control, which economists agree reduces housing supply.
Tracy Ellis: Let’s talk about tech. Microsoft seems to be doing well—investing in AI and posting strong sales—but they’re also laying people off. How do you see the tech industry’s health?
Senator John Braun: AI will cause some job loss, but also create new jobs. I’m not overly worried about that. What concerns me more is the tax environment. The Democratic majority launched an all-out assault on tech this session. Even though we beat back some proposals, the message was clear: Washington isn’t welcoming to tech anymore. These companies can relocate easily, and we’ve lost our competitive edge. We saw this before when Seattle’s payroll tax pushed Amazon to Bellevue. Now the state is sending similar signals, and tech is quietly looking elsewhere.
Tracy Ellis: Eastern Washington is seeing more data centers, which are crucial for AI and need a lot of energy. Washington’s hydroelectric power is a big draw. President Trump recently said removing Snake River dams is off the table. Where do we stand on energy?
Senator John Braun: Historically, we’ve had abundant, inexpensive hydroelectric power, plus nuclear, gas, and coal. The last coal plant—near my home—is shutting down this year. That’s tough on my community, but the bigger issue is long-term energy supply. We’re removing legacy power sources without replacing them. Solar and wind aren’t ready to fill the gap. We’re facing real shortages, and building new projects is hard in Washington. Data centers also provide huge property tax revenue that supports schools, fire districts, and libraries. If we don’t keep building them—and spread them across the state—we’ll face economic setbacks.
Tracy Ellis: Boeing seems to be recovering. You’ve said other states’ top employers are often universities or hospitals, but here it’s Boeing—or is it?
Senator John Braun: Actually, Amazon is now the top employer, with Boeing second. That’s a big deal. Most states rely on nonprofits or retail giants. We have two of the nation’s biggest companies, offering high-paying, career-track jobs. But we’re making it hard on them—especially with taxes. The Democratic majority passed nearly $13 billion in new taxes over four years, the largest increase in state history. That hits everyone—from tech to manufacturing to consumers—through higher food, childcare, and gas prices.
Tracy Ellis: Many people are struggling—not in poverty, but close. Employment is strong, wages are up, but inflation is eating away at gains. Is the legislature making things worse? Can it afford to help?
Senator John Braun: Yes, they’re making it worse—with new taxes, regulations, and energy rules that raise costs. And no, the state can’t afford to help everyone. Government should support the truly vulnerable, but if everyone’s in need, we can’t sustain that. What really fires me up is how the working middle class is being squeezed. They’re not getting help, yet they’re shouldering more taxes and costs. Most of the new taxes are regressive—they hit lower-income folks hardest. And inflation itself is regressive. Overspending by the Democratic majority has driven inflation, undoing wage gains.
Tracy Ellis: Democrats raised taxes to pay the bills, but costs keep rising. If they won’t cut spending and still need more money, is raising taxes their only option?
Senator John Braun: You can’t solve overspending by spending more. That’s true for any budget—personal, business, or state. We came in with a $6.7 billion deficit, which grew to $7.5 billion. Out of $150–160 billion in total spending, that’s manageable. But instead of tightening the budget, Democrats increased spending by $16 billion. They added new programs we didn’t need. We should focus on maintaining existing services, not chasing shiny new ones. More taxes and spending will hurt the economy and reduce future revenue. We need to control growth—not make drastic cuts, just manage spending responsibly.
Tracy Ellis: The national economy is uncertain—some predict recession, others say inflation will ease. Either way, belt-tightening is happening. Do Democrats understand that reality?
Senator John Braun: Some do. But there’s a core group of hardline progressives—maybe even socialists—who believe taxing and spending more will fix everything. It hasn’t worked anywhere else, and it won’t work here. They’re doing real long-term damage to our state. We’ll face serious challenges next year unless we change course.
Tracy Ellis: We’ll see how it plays out. There are still a lot of question marks about the economy’s future. These are all issues you’ll be dealing with in the next legislative session come January. This is The Elephant in the Dome, the official podcast of the Washington State Senate Republican Caucus.