Budget

Washington’s fiscal situation prompts vetoes of just $800,000 from the operating budget

The 2026 supplemental operating budget, as passed by the Legislature, increases appropriations from funds subject to the outlook (NGFO) by $2.348 billion. Revised NGFO appropriations for 2025–27 are $80.206 billion. As we’ve shown, appropriations for the biennium exceed revenues by $4.9 billion. The budget balanced due to the use of one-time funds and unusual accounting […]

Supplemental transportation budget would use bonds to fund new highway preservation spending

The 2025–27 biennial transportation budget balanced thanks to a revenue package that included an increase to the gas tax and increased sales taxes on transportation-related transactions. The tax and fee increases were expected to increase revenues by $1.885 billion through 2027–29. These funds were used mainly to shore up existing projects. Nevertheless, the biennial budget […]

Legislature books substantial cost savings from changes to child care funding policies (and a brief history of funding for the Fair Start for Kids Act)

The largest spending reduction in the 2026 supplemental operating budget is related to SHB 2689, which would make various changes to Working Connections Child Care (WCCC) and child care subsidy payment policy. (Neither SHB 2689 nor the supplemental operating budget have yet been signed by the governor.) Under current law, families are eligible for WCCC […]

Operating budgets in 2023–25 and 2025–27 rely on fund transfers to an extent not seen since the Great Recession

The supplemental operating budget passed by the Legislature transfers a net of $1.663 billion from other accounts into the NGFO (funds subject to the outlook). Combined with transfers enacted in 2025, net NGFO transfers for 2025–27 total $2.292 billion. Aside from the use of rainy day funds, these transfers are made from accounts that are […]

Following the more than $1 billion shifted from the capital budget to the operating budget, tapping CCA and LEOFF 1 funds along the way

According to the Department of Ecology’s December 2025 revenue forecast, revenues from the carbon emission allowance auctions are estimated to be $832.2 million higher (over the 2023–25, 2025–27, and 2027–29 period) than expected when the 2025–27 budgets were adopted last year. Based on the current revenue forecast, the state effectively has a one-time windfall that […]

Promises for 2027–29

Under the four-year balanced budget requirement, the maintenance level (the cost of continuing current services, adjusted for inflation and enrollment) of the adopted budget must balance within expected resources for the next biennium. The 2026 supplemental operating budget that was passed by the Legislature yesterday increased net new policy spending for 2025–27 by $621.3 million. […]

Budget bill includes provisos related to fiscal sustainability

The conference report for the operating budget would widen the gap between spending and revenues that started in 2023–25. As I discussed yesterday, the income tax will not solve the problem; instead, the Legislature must limit spending. Nodding to that, the operating budget bill proposed by the conference committee includes more language about sustainability and […]

Policy changes in the operating budget conference report would increase appropriations by $621.3 million

As I wrote yesterday, the operating budget conference report would increase appropriations from funds subject to the outlook (NGFO) by $2.348 billion compared to enacted appropriations for 2025–27. That includes $1.727 billion at the maintenance level (the cost of continuing current services, adjusted for enrollment and inflation) and $621.3 million in net new policy. The […]

Conference operating budget would not balance even in the current biennium but for unusually high accounting assumptions

The conference committee’s operating budget proposal relies heavily on one-time resources, questionable accounting assumptions, and the new income tax. The proposal would increase appropriations from funds subject to the outlook (NGFO) by $2.348 billion (3.0%) over enacted 2025–27 appropriations. Revised 2025–27 appropriations would be $80.206 billion, which would be 11.4% higher than actual 2023–25 spending. […]

An estimate of the size of the current shortfall, and how the Senate and House would close it

Determining the size of a budget shortfall is more subjective than you might think. It involves numerous assumptions, and various parties don’t always agree on what those assumptions should be. On top of that, everyone has a different idea of how much new spending should be added. In a supplemental budget year, shortfalls occur when […]