Budget

Outlook underestimates liability costs by almost $1 billion

The state’s self-insurance liability account (SILA) is funded by state agencies, and their premiums are based on a biennial actuarial study of agency liabilities. The actuarial reports are issued in the summer of even years, based on program data as of the end of the prior calendar year. Via a public records request, I obtained […]

Liability account expected to be $345 million in deficit at end of the biennium; major increase in agency liability premiums requested

The Department of Enterprise Services (DES) is requesting $1.274 billion in 2027–29 and $939.5 million in 2029–31 in new spending from the self-insurance liability account (SILA). The SILA is used to “pay legal liabilities and defense costs of the state resulting from tortious conduct.” Agencies pay premiums to the account based on an actuarial study […]

The state isn’t the only government in Washington facing increasing liability costs

As I’ve written, the growing deficit in the state’s self-insurance liability account (SILA) is a significant problem for the state budget. Indemnity payouts have increased dramatically in recent years. According to the Office of Financial Management, the ending balance in SILA was -$963.9 million for FY 2026. That’s the ninth year in a row the […]

State liability account shortfall grows

Jim Brunner of the Seattle Times reports that the Office of Financial Management (OFM) has authorized the state’s self-insurance liability account (SILA) “to be in a temporary cash deficiency of up to $1.7 billion” in 2025–27. At this time last year, the state had authorized a temporary cash deficiency in the account of up to […]

State liability account shortfall could grow to more than $1.3 billion by end of 2025–27

One reason the enacted 2025–27 operating budget is not sustainable is that legislators ignored the shortfall in the state liability account, even though they knew that it faced a substantial deficit at the end of June 2025. As I wrote in July, net income to the account had been negative since FY 2015, despite a […]

State liability account problems escalating quickly

As I’ve written, the operating budget did not include a backfill for the state liability account, even though the Legislature knew that the account could end the 2023–25 biennium with a shortfall of up to $580 million. We’ve identified this as one of the choices the Legislature made that contribute to the unsustainability of the […]

A $580 million deficit is expected in the state liability account at the end of June

According to the Office of Financial Management (OFM), the Department of Enterprise Services (DES) estimates that the state liability account will have a cash deficit of $580 million at the end of the current fiscal year (June 30, 2025). Even though the Legislature knew of the problem, it did not appropriate funds in the operating […]

As tort liability has risen for Washington, the state liability account is in deficit

One major policy item in Gov. Inslee’s proposed 2022 supplemental operating budget is an appropriation of $217.0 million from the general fund–state to the liability account, “to ensure the account is not in deficit.” The liability account is used “for the payment of liability settlements and judgments against the state . . . or for […]