NAIOPWA Legislative Session Report - Week 7

Krystelle Purkey and Ehren Flygare, State Lobbyists

The most significant development of the week besides fiscal committee actions prior to the February 28 Fiscal Committee cutoff was Governor Bob Ferguson’s news conference, where he outlined approximately $4 billion in additional budget cuts for the legislature to consider. These cuts, on top of those in Governor Inslee’s proposed budget, could cover nearly half of the state’s projected shortfall.

Currently, the state operates on a balanced budget that extends through June 30, 2025. However, the primary focus of the 2025 legislative session is crafting a new operating budget for the following years. A significant challenge looms: a projected $15 billion gap between expected tax revenue over the next four years and the state’s existing financial commitments, including funding for education, healthcare, corrections, and human services.

The 2017 session of the Washington State Legislature is now in its second 30-day special session in order to find agreement on the level and sources of funding for the McCleary decision to fully fund K-12 education. The legislature is expected to reach agreement by the end of the special session on June 21, or by June 30, the final day of the current biennium.

The Washington Supreme Court ruled in McCleary that school districts’ reliance on local levies, and the ability of local communities to pay for those levies, varied dramatically around the state and resulted in inequitable funding of K-12 education. The legislature’s challenge has been to equitably fund education statewide.