Each December, the governor is required to submit an operating budget to the Legislature that balances within existing revenues (the “Book 1” or “current law” budget). The governor may also propose a budget that increases revenues (the “Book 2” or “new law” budget). The budget proposed by former Gov. Inslee that included B&O tax increases and a wealth tax was his Book 2 budget.

Inslee’s preferred Book 2 budget would appropriate $79.477 billion from funds subject to the outlook (NGFO) for 2025–27. His proposal estimates that the maintenance level (the cost of continuing current services, adjusted for inflation and enrollment) for 2025–27 is $77.227 billion. Inslee’s Book 1 budget would appropriate $72.521 billion. As shown in the chart below, the spending level in the Book 1 budget would still be higher than appropriations in the current biennium.

Nevertheless, House Democrats are calling Inslee’s Book 1 budget “catastrophic.” However, in discussing the Book 1 spending reductions, they are inappropriately comparing Inslee’s Book 1 spending to his Book 2 spending. The true measure of the problem is not Inslee’s preferred spending level; instead, it is the amount by which the maintenance level exceeds resources. Thus, House Democrats are overstating the impact of potential spending reductions.

Further, Inslee’s Book 1 budget would fund the collective bargaining agreements with state employees and with family child-care providers. He made a choice to propose funding these compensation increases at the expense of spending on services. The Legislature could make different choices about spending increases and reductions.