Olympia City Council moves forward with 2026 Legislative Agenda

The Olympia City Council approved a 2026 Legislative Agenda that lists a number of priorities for the year, with an emphasis on housing and homelessness, environmental infrastructure and financial stability.

The seven member governing body backed the agenda at a meeting at Olympia City Hall on Tuesday, Jan. 13, a few days after the group met with state legislators to discuss the list of items. The agenda was approved as part of the city council’s consent calendar.

The Jan. 8 meeting with the 22nd District Legislative Delegation — state Sen. Jessica Bateman, and state Reps. Lisa Parshley and Beth Doglio — came amid a backdrop of state budget woes.

The state of Washington is facing an estimated $2.3 billion shortfall in 2026, largely because spending growth is outpacing revenue, based on an analysis from the Washington Policy Center in Seattle. The budget dilemma is likely to headline the 2026 session of the Washington State Legislature, which started on Monday, Jan. 12.

Housing and homelessness

The Olympia City Council wants to expand attainable housing, and strengthen homelessness response and support services. The city council also wants state legislators to sustain operational and capital investments to address long-term homelessness challenges. 

That includes protecting operational funding for Tiny Home villages, such as Franz Anderson Village.

“We’re going to continue to need operating dollars,” said Mayor Dontae Payne at the meeting with state legislators.

The city council is also calling for alternatives to current eviction processes, as well as removal of the 33 percent cap on the part of the Home Fund that can be used for operating costs. That would allow for greater flexibility beyond capital expenditures.

The Home Fund has provided more than $2 million per year to help housing developers produce affordable housing in Olympia, according to the city. The Home Fund levy, which was approved by voters in 2018, implemented a one-tenth of 1 percent sales and use tax collection to help produce affordable housing.

Deschutes Estuary project

The city council is supporting the Office of the Governor and Washington State Department of Ecology’s budget request of $25.2 million of combined state, private and local funding to finish the design of the Deschutes Estuary project by the end of the 2027 fiscal year.

The project appears to have the right backing in place.

“There is a ton of support in the governor’s office for the project,” said Doglio at the meeting on Jan. 8.

A request for qualifications issued by the Washington State Department of Enterprise Services in November 2024 pegs the total cost of the project at approximately $350 million, although that figure could climb.

The project calls for the construction of a new 5th Avenue Bridge and roadway to reroute arterial traffic and utilities before the removal of the 5th Avenue Dam.

“The project will subsequently remove the 5th Avenue Dam, a barrier constructed in 1951 across the Deschutes Estuary tidelands to create Capitol Lake as an aesthetic and recreational amenity for Washington’s state Capitol Campus,” the request for qualifications states.

“In removing this barrier and restoring Deschutes Estuary, the project will reintroduce tidal hydrology to the mouth of the Deschutes River, reconstruct 260 acres of historic estuarine habitat, and create 85 acres of new salt marsh habitat.”

Revenue

Because the City of Olympia continues to face structural revenue shortfalls driven by rising costs and insufficient revenue growth, it is also asking the Washington Legislature to protect existing funding resources and preserve local fiscal tools, the agenda states.

That translates to protection of funding for the Encampment Resolution Program, Public Works Board, Washington State Housing Trust Fund, Model Toxics Control Act, Climate Commitment Act, Community Economic Revitalization Board, Community Housing Improvement Program and Main Streets Program.

The city also broached the idea of requesting the state provide councilmanic authority on revenues to authorize cities to place Fire Benefit Charges on the ballot to fund extended services, although that does not appear likely in the near future.

“It is not anywhere near our radar,” said Olympia City Manager Jay Burney after the Jan. 8 meeting ended.

Secondary legislative agenda

The secondary legislative agenda addresses policy priorities and initiatives the City of Olympia supports and plans to advocate for in coordination with local, regional and state partners.

The policy priorities and initiatives range from fire department coverage of state facilities and climate projects and programs to housing, local revenue options and housing issues.

The secondary agenda also targets transportation improvements, city insurance and liability reforms, as well as public safety and regional priorities, including the Thurston County Regional Justice Center.

The Washington State Legislature’s 2026 legislative session is scheduled to last up to 60 days with a sunset date of March 12.

Staff writer Lorilyn Lirio contributed to this report.