Washington’s four-year balanced budget requirement and constitutionally-protected rainy day fund promote state budget sustainability. The requirement that budgets balance over four years helps to limit the use of budget gimmicks and to prevent unsustainable bow wave spending. Reserves improve sustainability by providing a cushion for emergencies and limiting major program cuts during economic downturns. Because the rainy day fund is protected in the constitution, deposits are mandated, and withdrawals are limited.

Still, the Legislature plans to withdraw $2.044 billion from the rainy day fund in 2017–19. On top of that, it diverted $711 million before it could be deposited in the fund in order to avoid the limits on withdrawals, setting a bad precedent that Gov. Inslee has already attempted to repeat. By making these withdrawals, Washington is less prepared for a recession, should one occur in the next biennium.

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