OLYMPIA, WA – Facing another multi-billion-dollar state deficit, Republicans are hoping to avoid more taxes by closing a loophole they say allows government workers to double dip by using paid time off and family leave at the same time.
Last April, Democrats filled another hole they estimated at $12 billion to $16 billion over the next four years by enacting the largest tax increase in state history. The majority party claims the $9 billion hike came with just about as much in cuts but spending ultimately increased last session to record levels.
Sen. Chris Gildon, of Puyallup who is the Senate Republican leader on the operating budget, told The Center Square that state spending has more than doubled over the last decade. In July, the Center Square reported how Washington state spending doubled over the past decade.
He said it’s unsustainable and plans to propose several bills to get Washington back on track. The first of which came out on Monday.
“Found out recently that state employees are able to basically double dip,” Gildon said. “They’re able to collect sick leave and paid family medical leave at the same time, which equates to basically them collecting 190% of their paycheck every week they do this. I don’t think that should be the case.”
If approved, House Bill 5889 would cap the benefits a public employee can receive while using accrued paid leave and the state’s paid family medical leave at either their salary or their average hourly wage.
Gildon wants state employees to use accrued paid time off, or PTO, before PFML. His proposal wouldn’t mandate that, but it would prevent those workers from receiving 100% of their PTO pay in addition to the state’s benefits. The taxpayer-backed PFML program provides up to 90% of average weekly pay.
HB 5889 also prohibits employees from including any PTO supplementing PFML in weekly claims sent to the Employment Security Department. Gildon said this has resulted in more than 300,000 hours of employees “double-dipping” on the taxpayers’ dime. ESD is assessing potential impacts and savings.
“All employers may choose to provide supplemental benefits and allow the combination of paid time off (PTO) and PFML leave,” ESD Communications Director Chris Barron wrote in an email to The Center Square. “State law does not prohibit combined benefits exceeding the worker’s normal wages.”
He said individual employers can determine what level of combined benefits they choose to provide.
State lawmakers convene next month for the 2026 legislative session, facing a $2 billion to $4 billion deficit through 2029. Gov. Bob Ferguson has said he would oppose any additional sales or property tax hikes, so some Democrats are responding with corporate taxes, as rumors spread of an income tax.
Republicans have warned that both would push businesses out of the state, diminishing tax revenues.
Gildon said stopping the “double dip” is just one example of savings and has more plans on the way.
“Real reforms that save real dollars and are not cuts to services,” he told The Center Square.
The Washington State Federation of State Employees didn’t respond to The Center Square’s requests for comment.
