The Legislature has passed 2SSB 5802, which would transfer funding between the operating and transportation budgets. Effectively, these changes would help to alleviate the operating budget’s FY 2026 problem while also setting up a permanent funding stream for the transportation budget.

First, the bill would transfer $225.9 million from the multimodal account (transportation budget) to the general fund–state (GFS, operating budget) in FY 2026.

Additionally, under current law, $57.0 million is transferred annually from the public works assistance account (PWAA) to the move ahead WA account and another $57.0 million is transferred annually from the GFS to the move ahead WA flexible account. In 2025–27, 2SSB 5802 would transfer the PWAA amounts to the GFS instead and repeal the transfers from the GFS.

The bill would also require the payment of deferred sales taxes for the Tacoma Narrows and SR 520 bridges by the end of FY 2026.

Then, the bill would transfer $609.4 million from the GFS to the multimodal account in 2027–29, thus paying the transportation budget back for the increased revenues in 2025–27.

Finally, under current law, revenues from state sales and use taxes are generally deposited in the GFS. Beginning in FY 2028, the bill would direct state sales and use tax collections equal to 0.1% of the selling price to the multimodal account. According to an estimate provided by the Department of Revenue to the House Appropriations Committee, this provision would reduce GFS revenues by $581.1 million in 2027–29.

Altogether, 2SSB 5802 would increase GFS revenues by $609.4 million in 2025–27 and reduce them by $1.190 billion in 2027–29.