Blog

CCA revenues are expected to decline sharply in 2027–29, so using them to fund the working families tax credit would be an unsustainable one-time deal

Gov. Ferguson’s 2026 supplemental operating budget proposal would shift funding for working families tax credit (WFTC) remittances from the general fund–state (GFS, which is a fund subject to the outlook) to the climate commitment account (CCA) for 2025–27. Although the WFTC is an allowable use of the CCA (RCW 70A.65.260(1)(a)), making the shift would mean […]

Governor hasn’t made his current law operating budget publicly available

The governor is required by statute to propose a budget that balances within existing revenues (RCW 43.88.030). This is called the “current law” or “Book 1” budget. The statute allows the governor to also propose a budget that uses “revenue sources derived from proposed changes in existing statutes.” This is called the “new law” or […]

Gov. Ferguson’s operating budget proposal would reduce policy level spending by a net of $85.1 million

As I wrote last month, Gov. Ferguson’s 2026 supplemental operating budget proposal would increase appropriations for 2025–27 from funds subject to the outlook (NGFO) by $1.159 billion. The maintenance level change (the cost of continuing current services, adjusted for caseloads and inflation) increases appropriations by $1.244 billion, but it is offset by net policy level […]

Governor doesn’t propose a general tax increase for the supplemental operating budget, but the proposal doesn’t balance over four years

The Office of Program Research estimated earlier this month that the operating budget shortfall is about $1.5 billion in 2025–27 and $4.3 billion over four years. Gov. Ferguson has proposed a supplemental operating budget that leaves a positive ending balance of $140 million in funds subject to the outlook (NGFO) at the end of 2025–27. […]

Budget proposals are starting to roll in

Yesterday Gov. Ferguson held a press conference to discuss the housing funding in his supplemental capital budget proposal. He is proposing an additional $244 million for housing (including programs in the operating budget). He also said that his office made some adjustments to the budget proposals to help with recovery efforts from the recent flooding […]

Will the dedication of 0.1% of the sales tax to the transportation budget be scrapped?

The Washington State Standard reports that there is talk among legislators of reversing a planned transfer of ongoing revenues from the operating budget to the transportation budget. In December 2024, legislative staff estimated that there would be substantial shortfalls in the transportation accounts. The 2025–27 transportation budget included a revenue package that was used mainly […]

Washington would be worse off without the four-year balanced budget requirement

Lieutenant Governor Denny Heck was the keynote speaker at the Washington Observer’s Re-Wire Conference on Tuesday. During his talk, he brought up the estimated $4.3 billion budget shortfall and noted that there are three ways the Legislature could solve the problem (or a combination of the three): “Raise taxes, cut spending, or get creative with […]

Report describes options for LEOFF 1 surplus; state treasurer has concerns

There is a substantial expected surplus in the Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System Plan 1. During the 2025 legislative session, there were several proposals to extract funds for use in the state operating budget. Ultimately, the enacted 2025–27 operating budget required the Select Committee on Pension Policy (SCPP) to “study and […]

Legislative staff estimate that the operating budget shortfall is $4.3 billion over the outlook period

Non-partisan legislative staff estimate that the state operating budget has a shortfall of $4.3 billion over the outlook period. There should be no surprise here. As we wrote of the enacted 2025–27 budget in July, the sustainability of the 2025–27 budget is highly questionable. In addition to leaving a very small ending fund balance, the […]

Since the 2025–27 operating budget was adopted, revenues are down by $1.690 billion over the outlook period

According to the Economic and Revenue Forecast Council, revenues for funds subject to the outlook (NGFO) are estimated to be $66 million lower over the outlook period than was forecasted in September. Final revenues for 2023–25 (which ended June 30) total $67.137 billion, an increase of $13.1 million compared to the September forecast. The forecast […]