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Major policy changes and notable provisos in the Senate Chair’s operating budget proposal

The Senate Ways & Means Committee Chair’s supplemental operating budget proposal would increase 2025–27 appropriations from funds subject to the outlook (NGFO) by $2.286 billion. (Yesterday I provided an overview of the proposal.) The increase in appropriations is comprised of a maintenance level (the cost of continuing current services, adjusted for enrollment and inflation) increase […]

House Appropriations Committee Chair proposes increasing appropriations by 2.7%

The House Appropriations Committee Chair is proposing a 2026 supplemental operating budget that would increase appropriations from funds subject to the outlook (NGFO) by $2.074 billion (2.7%). This is $211.6 million less than proposed by the Senate Ways and Means Committee Chair. Of the increase, $1.734 billion is maintenance level (the cost of continuing current […]

Senate Ways & Means Committee Chair’s operating budget proposal would increase appropriations by 2.9%

The Senate Ways & Means Committee chair is proposing a 2026 supplemental operating budget that would increase appropriations from funds subject to the outlook (NGFO) by $2.286 billion (2.9%) over enacted appropriations for 2025–27. This would bring revised appropriations for the biennium up to $80.144 billion. Of the increase, $1.734 billion is at the maintenance […]

Transportation revenues are now forecasted to be lower than assumed in 2025–27 transportation budget

Transportation revenues are forecasted to total $8.741 billion in 2025–27, $10.747 billion in 2027–29, and $10.273 billion in 2029–31. The enacted 2025–27 transportation budget balanced through 2027–29. The Legislature adopted a revenue package last year that was used mainly to cover shortfalls in existing transportation projects. With the February revenue forecast, transportation revenues for the […]

An alternative income tax proposal would require a constitutional amendment

Yesterday, Rep. Walen introduced HB 2738, which would impose an income tax, and HJR 4213, which would amend the state constitution to explicitly allow the income tax. HB 2738 is very similar to the income tax bill (SB 6346) that was passed by the Senate on Monday. Indeed, the base text of HB 2738 is […]

House-passed bill would make LEOFF 1 surplus easily accessible to budget writers

Last Friday, the House passed E2SHB 2034. The bill would terminate the Law Enforcement Officers’ and Firefighters’ retirement system Plan 1 (LEOFF 1), which has been closed to new members since 1977, and create a restated LEOFF defined benefit retirement fund. As of June 30, 2024, LEOFF 1 was estimated to be 160% funded. HB […]

Senate-passed income tax bill increases the amount of tax relief compared to the original version, and the governor is proposing additional relief provisions

The Senate passed the income tax bill (SB 6346) on Monday. I wrote about the bill as introduced here and here. Amendments were adopted by the Ways and Means Committee and on the Senate floor, some of which will have significant fiscal impacts. Some of the amendments made by the Ways and Means Committee include: […]

Inflation-adjusted state spending for K–12 has increased since 2020 (though growth has slowed compared to the McCleary response years)

Today, State Superintendent Reykdal noted the improved state revenue forecast and asked legislators to continue to increase state funding for K–12 education: With additional revenue expected, it is unclear whether further cuts to education are being considered. With a shortfall of nearly $1 billion per year in funding for the basic education that is granted […]

Since the current budget was adopted, revenues are up $166 million over the outlook period

According to the Economic and Revenue Forecast Council (ERFC), revenues for funds subject to the outlook (NGFO) are now forecasted to be $1.856 billion higher over the outlook period (2023–25, 2025–27, and 2027–29) than had been forecasted in November. The forecast for 2025–27 increased by $827.4 million, to $75.276 billion. The forecast for 2027–29 increased […]

Income tax would increase revenues by more than $3 billion a year

The Department of Revenue (DOR) has now published a fiscal note for the income tax bill. According to DOR, the income tax would increase revenues by $2.717 billion in fiscal year 2029, $4.080 billion in 2030, and $3.487 billion in 2031. A small portion of these revenues would be allocated by the bill to specific […]