Budget challenges and citizens initiatives set for the November ballot could create a longer wait for crucial state dollars as Port Orchard’s leaders begin to prepare for what could be a wild card 2025 legislative session.

Josh Weiss with Gordon Thomas Honeywell Government Relations took the Port Orchard City Council through a preliminary discussion Aug. 13 that covered what budgetary numbers are currently in favor of the growing city and what challenges may present themselves after the completion of the general election.

Top concerns lie with three key citizen initiatives that include potential rollbacks of the Climate Commitment Act and the state’s capital gains excise tax while also potentially introducing new opt-out eligibility under the state’s WA CARES program.

Weiss reminded councilmembers that the initiatives each cover areas of specific funding. If any of the initiatives pass— Weiss focused on the climate and capital gains specifically– it could leave politicians with a choice of whether to backfill the priorities in which they lost funding by cutting dollars elsewhere.

“So it sort of creates a domino effect, and how that gets played out is really anybody’s guess,” he said. “If any of those passed, we’re going to be tracking that and watching how they deal with that all session long.”

The initiatives combined with a likely downward forecast of revenues in the current and future biennial and declining gas tax revenues have created uncertain paths forward for cities like Port Orchard that are in need of state funding to make certain projects more achievable. This would include the planned elevation of a segment of downtown Bay Street, which Weiss said would take a back seat to other projects if the climate initiative passes.

Projects building from the 2024 agenda could include the planned waterfront community center and the Sedgwick roundabouts.

The capital budget could add a boost to local projects. The projected $4.7 billion in bond capacity would be bigger than the last supplemental year, creating a healthy time for local governments to request capital dollars, Weiss said.

New ideas for Port Orchard leaders to prioritize in the upcoming legislative session could include penalties for owners of vacant buildings, Growth Management Act reform and opposing further housing and homelessness mandates.

Mayor Rob Putaansuu agreed with Weiss’ advice to seek a pause on the housing mandates, saying the city’s planning department is still reeling from the changes. “The last few sessions, they’ve just come at us and come at us. We needed a pause on this, and it’s really more about maintaining maybe some local control.”

He added that changes in state law are needed if the city is going to be successful with a vacant building law. “Poulsbo is kicking the tire on this, too. Maybe it will get some energy, and if it’s there, we’re going to be there to support that effort.”

The 2025 session is set to last for 105 days.