Due to an increasing demand for public services, in addition to lower tax collections, Washington is facing an estimated operating budget shortage ranging from $10 billion to $12 billion over the next four years. This shortfall is a result of an increasing demand for public services, while the tax collections have fallen short of expectations. In response, Governor Jay Inslee has called for budget cuts across state agencies to close this gap.
For 2024, according to Inslee’s website, his budget has successfully supported:
- Increase in pay for teachers and funding for school construction
- Climate Commitment and energy bill rebates
- Behavioral health care
- Fentanyl education, overdose prevention, treatment, etc.
- Housing and homelessness
To address the crisis, state agencies have been instructed to integrate cost-saving measures such as hiring freezes, delays in non-essential programs, and deferrals of new purchases. The Department of Social and Health Services and the Department of Transportation have already implemented various hiring freezes, with exceptions for critical positions like healthcare and ferry services.
Senator June Robinson, chair of the Senate Ways and Means Committee, has acknowledged the severity of the situation. She indicated that the state would likely need to consider a combination of spending cuts and potential new revenue sources to bridge the deficit.
The current two-year operating budget stands at approximately $72 billion, but the deficit threatens to push future spending higher. For the 2025-27 time period, Senate Minority Leader John Braun projected that maintaining current service levels would need to bring the budget closer to $76 billion. However, Braun has confidence that the state can manage this shortfall without resorting to new taxes. He believes that “we can live within our means,” though lawmakers will need to consider both spending cuts and new revenue sources.
Education is a major concern and portion of the budget, with the Office of Superintendent of Public Instruction requesting an additional $3 billion for public schools and special education funds. As lawmakers are preparing for the 2025 legislation, the state is facing some difficult fiscal choices. Inslee’s office is currently working closely with Governor-elect Bob Ferguson to create a budget that will balance fiscal responsibility with the state’s commitments to public service.
