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Governor proposes increasing the use of WEIA to supplant other funds for higher education

The workforce education investment account (WEIA, a fund subject to the outlook) may be used “only for higher education programs, higher education operations, higher education compensation, state-funded student aid programs, and workforce development” (RCW 43.79.201). Until last year, WEIA expenditures were statutorily required to supplement, not supplant, other funding for higher education. The enacted 2025–27 […]

Seattle Times on state spending and shortfalls

A new Seattle Times editorial argues that the Legislature should finally “draw a line on spending” this year. In the process, it hits many important budget sustainability themes: Meanwhile, the news side of the paper gives a preview of the legislative session. Gov. Bob Ferguson’s first year in office has been shaped by a state […]

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 […]

Pre-filed bills would make changes to the 2025 tax package, including a proposed repeal of ESSB 5814

The 2025 tax package was rushed through the legislative process, leading to considerable uncertainty. The implementation of ESSB 5814, which extended the sales tax to more services, has been particularly fraught. Unsurprisingly, three bills have been pre-filed that would make changes to ESSB 5814. Additionally, two bills would make changes to ESSB 5794, which repealed […]

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 […]