While we wait for the certification of the election at both the local and national level, here are a few key takeaways from what we here at the WSCPA are watching.

Federal – President-elect Biden will likely have to work with a Republican majority in the Senate and a smaller Democratic majority in the House of Representatives. There have already been discussions of a new federal stimulus package that is expected in the beginning part of 2021. We will work with our national partners to provide updates as this package takes shape and on how it may impact you and your clients.

State Overview – Locally Democrats have maintained their majorities in Olympia. Governor Inslee has become just the second governor in our state’s modern history to be elected to a third term. While speculation remains that he will join a President Biden administration, he has reiterated his commitment to fulfilling his newly elected term. If he were to accept a federal position, our newly elected Lieutenant Governor, Denny Heck, would assume the position of governor until a special election could be held to fill the remaining part of the term.

Treasurer Duane Davidson, a CPA, lost his re-election bid to Representative Mike Pellicciotti who will become our new state treasurer in January.

Auditor Pat McCarthy has won re-election and will complete another four years as our state auditor.

In the state Legislature, Democrats look to have maintained their majorities in the House of Representatives, 57 D – 41 R, and Senate, 28 D – 21 R. In the coming weeks all four caucuses will elect or reaffirm their leadership positions and committee assignments. We will monitor these changes so that we can continue to work with the relevant members on the committees that examine legislation of interest to our profession.

Of note for the state Legislature majorities: The state constitution requires a 60 percent vote in each chamber for issuing new bonds or withdrawing money from the Budget Stabilization Account (Rainy Day Fund). This would mean 30 votes in the Senate and 59 votes in House. Given the significant budget deficit the state is facing ($4 billion+ through June 2023) it is expected that the state will try to use some or most of the nearly $2 billion in the Rainy Day Fund.

If you have any specific questions about election results or other races, please reach out to me at mnelson@wscpa.org or 425.495.1307.

Mike Nelson is the WSCPA Manager of Government Affairs.