Budget

Budget savings directive from Gov. Ferguson would not reduce the maintenance level for 2025–27

Earlier this month, Gov. Ferguson released a budget priorities document that called for across-the-board spending cuts. This sounded like a promising way to start to close the operating budget shortfall. However, the document did not specify the spending level from which the reductions would be made. When I wrote about Gov. Ferguson’s proposal, I assumed […]

Inslee, Senate Democratic Caucus revenue ideas would significantly increase B&O taxes

Even though legislative spending choices are the cause of the projected operating budget problem, former Gov. Inslee proposed major new tax increases as part of his 2025–27 operating budget proposal. Similarly, several “revenue options” from the Senate Democratic Caucus (SDC) were made public last month. These proposals would significantly increase business taxes. Businesses already pay […]

The size of the budget shortfall is in the eye of the beholder

Last week KIRO Newsradio called the size of the budget shortfall a “mystery.” Indeed, there is a wide range of estimates floating around: As I wrote last month, the size of the four-year shortfall depends on your assumptions about spending and revenues. The shortfall is the difference between forecasted resources and the projected cost of […]

Gov.-elect Ferguson’s savings proposals would begin to bring appropriations back in line with expected revenue

As I wrote on Friday, Gov.-elect Ferguson’s budget proposal is thin on details. Importantly, though, he argues that the first course of action is to reduce spending: “I am focused on identifying opportunities for savings first and will only focus on revenue after we have scrubbed the budget for savings and reductions.” Indeed, as we […]

How big is the operating budget shortfall? (Hint: not $16 billion)

For 2025–27, the estimated cost of continuing current services is expected to exceed current resources. As we showed in an October report, this is not a revenue shortfall—revenues are expected to grow by $5.040 billion in 2025–27 and by $5.414 billion in 2027–29. Instead, the estimated shortfall is the result of legislative spending choices over […]

Compensation increases account for most of the net policy increases in Gov. Inslee’s operating budget proposal

Gov. Inslee’s operating budget proposal estimates that the maintenance level for 2025–27 (the cost of continuing current services, adjusted for inflation and enrollment) is $77.360 billion. That is $5.415 billion (7.5%) higher than enacted 2023–25 appropriations. On top of that, Gov. Inslee proposes adding a net of $2.086 billion in new policy, including $1.210 for […]

Gov. Inslee proposes a 10.4% increase in appropriations, funded in part by a wealth tax and B&O tax increases

Gov. Inslee’s 2025–27 operating budget proposal would appropriate $79.446 billion from funds subject to the outlook (NGFO). That is $7.501 billion (10.4%) higher than enacted appropriations for 2023–25. Of the spending increase, $2.097 billion would be new policy. The proposal would leave an unrestricted NGFO ending balance of $497 million in 2025–27 and $2.376 billion […]

Maintenance level changes appear to be driven by K–12, DCYF

As I wrote earlier this week, the House Office of Program Research (OPR) estimates that the maintenance level (the cost of continuing current services, adjusted for inflation and enrollment) for funds subject to the outlook (NGFO) will increase by $4.377 billion in 2025–27 and by $6.367 billion in 2027–29. A full accounting of the maintenance […]

UW requests more state support for the behavioral health teaching facility and for UW employee compensation

The University of Washington’s 2025–27 operating budget request is just 2.1% above 2023–25 general fund–state (GFS) appropriations. However, the request includes substantial maintenance and policy increases that are offset by a large carry-forward level reduction. (See the box at the bottom of this post for budget and fund terminology.) The carry-forward level is reduced by […]

WWU requests an increase to its per-pupil state funding

Western Washington University is requesting an increase to its general fund–state (GFS) budget of $77.7 million (38.1%) for 2025–27. Most of that increase ($71.8 million) would be new policy. (See the box at the bottom of this post for budget and fund terminology.) The total increase for WWU would significantly exceed the total requested changes […]