What is the Washington State Budget? 

Washington state doesn’t have just one budget. There are three budgets that fund government operations: 

  1. Operating Budget – The largest and most significant. It funds public schools, healthcare, human services, and general government operations.  
  2. Transportation Budget – Focused on infrastructure, it pays for roads, bridges, ferries, and public transportation.  
  3. Capital Budget – This funds construction projects like public buildings, parks, and affordable housing.  

How Does the Budget Process Work? 

The budget process follows a biennial (two-year). Here’s how it unfolds: 

  1. Fall: State agencies submit funding requests to the governor’s Office of Financial Management (OFM). These requests include ongoing obligations and proposals for new policy changes. 
  2. December: The governor releases a proposed budget, built from these requests and the state’s revenue forecasts. 
  3. January: The 105-day legislative session kicks off. Lawmakers review the governor’s proposal, hold hearings, and begin shaping their own priorities. 
  4. March: The state Revenue Forecast Council releases the final revenue outlook, which gives lawmakers the most accurate picture of available funds. 
  5. April: The House and Senate release their budget proposals, then negotiate to finalize a compromise that is approved by both chambers and signed by the governor. 

The following year, during the shorter 60-day legislative session, lawmakers can adjust the budget through a supplemental budget to address changes like enrollment increases, caseloads, or new funding needs. 

Where Does the Money Come From? 

Most of the funding for the operating budget comes from taxes—primarily: 

  • Sales Tax 
  • Property Tax
  • Business & Occupation Tax 

These tax revenues make up what’s called the General Fund, which lawmakers have the most control over. 

Other funding sources include: 

  • Federal Funds – Dedicated for specific programs, like Medicaid or transportation projects. 
  • State Bonds – Used in the capital budget to fund major construction projects, similar to a loan.
  • Gas Tax & Climate Commitment Act Revenues – These primarily fund the transportation budget and climate-related initiatives. 

Where Does the Money Go? 

Once collected, your tax dollars are distributed across programs that impact communities across the state. 

Operating Budget Highlights: 

  • K-12 Education – The largest share of the budget funds Washington’s public schools. 
  • Human Services – Supports critical services like childcare subsidies, long-term care providers, mental health resources, and food assistance.
  • Higher Education – Supports Washington’s colleges, universities, and community/technical colleges. 
  • General Government – Funds emergency management, tax collection, housing programs, and economic development initiatives. 

Capital Budget Highlights: 

  • Funds construction of public parks, schools, affordable housing, and community facilities. 
  • Supports local infrastructure projects through grants to cities and counties. 

Transportation Budget Highlights: 

  • Funds state highway projects, road maintenance, ferries, and public transit systems. 
  • Supports the Washington State Patrol and Department of Licensing. 

Balancing the Budget and Saving for the Future 

Washington’s constitution requires that the state budget be balanced over the next four years. Lawmakers cannot plan to spend more than the state expects to collect in revenue. 

The state also maintains a “rainy day” fund (reserves) to prepare for emergencies, like economic downturns or unexpected events. This savings account ensures financial stability when challenges arise. 

Why Does the Budget Matter? 

The decisions made during budget season affect every corner of Washington: 

  • Schools and Education: Funding impacts teacher salaries, classroom resources, and school programs. 
  • Healthcare and Long-Term Care: Dollars support care providers, public health initiatives, and essential services for older adults and vulnerable populations. 
  • Infrastructure and Transportation: Investments improve roads, bridges, ferries, and public transit, ensuring safe and efficient travel. 
  • Housing and Parks: Communities benefit from new housing developments, outdoor spaces, and public buildings. 

Your voice matters, too! By staying informed and engaged, you can help ensure lawmakers prioritize the issues most important to you and your community. 

Source: Demkovich, L. (2024, December 16). A guide to understanding the Washington state budget. Washington State Standard. https://washingtonstatestandard.com/2024/12/16/a-guide-to-understanding-the-washington-state-budget/