Washington Legislature poised to pass record $70 billion spending plan

OLYMPIA – A two-year, nearly $70 billion state spending plan with major increases for public schools, housing, environmental and mental health programs likely will be approved Sunday on the final day of the legislative session.

It is a historic total, but with no new general taxes.

The final version of the 2023-25 Operating Budget was released Saturday after negotiators found a middle ground between earlier plans passed separately by the House and Senate.

It covers most state programs and salaries outside of transportation and will give raises for people who work in public schools, state agencies and those who provide some health care services under contracts with the state.

Senate Ways and Means Chairwoman Christine Rolfes, D-Bainbridge Island, called it a responsible spending plan that moves the state forward. The priorities represent not just the lawmakers who worked on it but “the input of thousands of voices we’ve heard from,” she said.

House Appropriations Chairman Timm Ormsby, D-Spokane, called it a “holistic” approach to meeting people’s needs in a way that’s sustainable and responsible.

“It is a bit of a stew,” Ormsby said. “Everyone contributed flavor to this stew.”

Republicans weren’t nearly as complimentary, although Sen. Lynda Wilson, of Vancouver, her party’s lead on the Senate budget committee, said it had “a lot of good things,” including more money for public safety, law enforcement and special education, with no tax increases.

On the other hand, it has no tax relief, either, added Wilson, who said she was undecided on whether she’d vote for it.

The final compromise is slightly better than the more expensive budget plan that passed the House but should spend less and put more money into the state’s reserve accounts as a hedge against a recession, Rep. Drew Stokesbary, R-Auburn, said.

“An economic downturn is still far from off the table,” he said.

The detailed spending plan has more than 1,400 pages but is often broken down by broad categories.

Education is the largest state expense, and the proposed budget would add about $2.9 billion over the current two-year budget to public schools, totaling more than $33.8 billion. About $521 million of that would cover higher salaries and health care costs for school employees, $417 million would go into programs for special education students, $91 million for Early Childhood Education and Assistance Program slots and $85 million to expand access to free meals for students.

The state would also spend about $1.2 billion of state and federal funds, an increase of about $603 million, on mental and behavioral health programs by adding new treatment facilities, more community-based housing to support people with developmental disabilities and chronic mental illness, both for adults and children.

A total of $519 million would be spent on housing and shelter programs to combat homelessness, part of more than $1 billion in total spending on homelessness when combined with construction programs in the separate capital budget.

It would also would spend more than $400 million on climate programs designed to reduce carbon emissions and prepare communities for potential threats from climate change, such as droughts and floods. Other climate programs would boost clean energy, energy efficiency in buildings and salmon recovery.

While the state gets most of the revenue for the operating budget from sales, business and property taxes, it also has access to federal funds for certain programs and certain fees and taxes directed to specific needs.

“We leveraged all the resources that were on the table,” Ormsby said.