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 assumptions.

Gov. Ferguson signed and partially vetoed the operating budget bill today. The Economic and Revenue Forecast Council will have a final accounting of the budget, incorporating vetoes, when it adopts an official budget outlook. In the meantime, the governor’s 25 operating budget vetoes are relatively minor, and it doesn’t look like they will have a significant impact on the balance of the budget.

As part of their veto messages, governors give their reasons for vetoing bills or sections of bills. For example, some of Gov. Ferguson’s vetoes were because policy bills didn’t pass or because funding would not be sufficient to administer a program. Despite Washington’s serious budget problem, Gov. Ferguson’s reasoning for only two vetoed sections was that “our state’s fiscal situation necessitates tough choices.” For this reason, he vetoed:

• $300,000 for humanities Washington’s prime time family reading program.
• $500,000 for a contract for an organized retail crime response program.