(The Center Square) – After ranking among the most expensive states to raise a child, Washington wants to cut costs for parents, but one plan would put nearly $730 million at risk amid a massive revenue shortfall.
According to SmartAsset, Washington was the eighth most expensive state to raise a child last year. When considering food, housing, childcare, healthcare, transportation and other needs, parents spend almost $28,000 annually, about $5,000 more than the national median.
House Bill 1307 could cut costs for parents but with significant financial risks. The proposed tax exemptions come as Washington faces a $10 billion to $16 billion shortfall, according to some Democrats, meaning the relief could make life easier for some but potentially at the expense of an already strained budget.
The Office of Program Research, made up of nonpartisan staff for the Washington State House of Representatives, has estimated a budget shortfall of $6.7 billion for the 2027-2029 biennium.
“This is something we can do to help out families,” Rep. Michelle Caldier, R-Gig Harbor, testified Friday during a public hearing on her bill before the House Finance Committee.
If approved, the legislation would create sales tax exemptions for diapers and other products to make parenthood more affordable. While the Department of Revenue would publish a list of all qualifying products, HB 1307 lays out several.
“Products specifically designed for and the use by or care of infants and children under the age of five,” Committee Staff Christina King briefed lawmakers on Friday. “Things like baby cribs, baby exercisers, strollers, baby wipes, car seats and booster seats.”
The complete list includes diapers and more than a dozen other products. If approved, the exemptions would also extend to adult diapers for older people and disabled individuals.
According to a fiscal note, the exemption could impact state and local revenues by nearly $730 million through 2031. HB 1307 would take roughly $500 million from the state general fund and another $226.6 million from cities, counties and special tax districts.
Gov. Bob Ferguson has already laid out plans to mitigate some of the current shortfall, but HB 1307 would dig deeper. State lawmakers need to cut anywhere they can or raise taxes to fill the revenue hole, and tax exemptions don’t necessarily help.
Many families are gasping for relief, but so are state and local budgets.
“The average price of diapers has gone to $43 a case, and they’re imperative for health and hygiene,” Peggy Behnken, a coordinator with Catholic Community Services, testified Friday. “Children need ample supplies, so please vote for this bill.”
