OFM, eliminating

AN ACT Relating to eliminating the office of financial management 1
and recovering approximately $27.8 million of the $30 million the 2
office of financial management misallocated in the 2023-2025 budget 3
cycle; adding a new section to chapter 43.41 RCW; creating a new 4
section; repealing RCW 43.41.030, 43.41.040, 43.41.050, 43.41.060, 5
43.41.070, 43.41.080, 43.41.100, 43.41.102, 43.41.104, 43.41.106, 6
43.41.110, 43.41.113, 43.41.120, 43.41.160, 43.41.170, 43.41.180, 7
43.41.260, 43.41.270, 43.41.275, 43.41.391, 43.41.392, 43.41.393, 8
43.41.394, 43.41.399, 43.41.400, 43.41.405, 43.41.410, 43.41.415, 9
43.41.420, 43.41.423, 43.41.425, 43.41.430, 43.41.433, 43.41.435, 10
43.41.440, 43.41.450, 43.41.455, 43.41.460, 43.41.470, 43.41.472, and 11
43.41.970; and providing an effective date. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:13
NEW SECTION. Sec. 1. The purpose of this act is to eliminate 14
the office of financial management and partially recover the $30 15
million that the office of financial management misallocated during 16
the 2023-2025 budget cycle. It is anticipated in making these 17
changes, general fund — state expenditures will be reduced by $27.8 18
million, with the remaining funds currently authorized for use by the 19
office of financial management being rededicated to the functions 20
H-1087.1
HOUSE BILL 1794
State of Washington 69th Legislature 2025 Regular Session
By Representatives Dufault and Jacobsen
Read first time 02/03/25. Referred to Committee on Appropriations.
p. 1 HB 1794
that are not eliminated, but passed on to the department of revenue, 1
the state auditor's office, and the state treasurer's office.2
NEW SECTION. Sec. 2. A new section is added to chapter 43.41 3
RCW to read as follows: 4
(1) All powers, duties, and functions of the office of financial 5
management are transferred to the department of revenue, the state 6
auditor's office, and the state treasurer's office as appropriate. 7
These departments and offices shall assume all responsibilities for 8
budget preparation, fiscal analysis, and financial management. All 9
references to the director of the office of financial management or 10
the office of financial management in law shall be construed to mean 11
the director of the department of revenue, state auditor, or state 12
treasurer, or the department of revenue, the state auditor's office, 13
or the state treasurer's office, as appropriate. 14
(2)(a) All reports, documents, surveys, books, records, files, 15
papers, or written material in the possession of the office of 16
financial management pertaining to the powers, functions, and duties 17
transferred shall be delivered to the custody of the department of 18
revenue, the state auditor's office, and the state treasurer's office 19
as appropriate. All cabinets, furniture, office equipment, motor 20
vehicles, and other tangible property employed by the office of 21
financial management in carrying out the powers, functions, and 22
duties transferred shall be made available to the department of 23
revenue, the state auditor's office, and the state treasurer's office 24
as appropriate. All funds, credits, or other assets held by the 25
office of financial management shall be assigned to the department of 26
revenue, the state auditor's office, and the state treasurer's office 27
as appropriate. 28
(b) Any appropriations made to the office of financial management 29
shall, on the effective date of this section, be transferred and 30
credited to the department of revenue, the state auditor's office, 31
and the state treasurer's office as appropriate. 32
(3) All rules and all pending business before the office of 33
financial management shall be continued and acted upon by the 34
department of revenue, the state auditor's office, and the state 35
treasurer's office as appropriate. All existing contracts and 36
obligations shall remain in full force and shall be performed by the 37
department of revenue, the state auditor's office, and the state 38
treasurer's office as appropriate. 39
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(4) The transfer of the powers, duties, functions, and personnel 1
of the office of financial management shall not affect the validity 2
of any act performed before the effective date of this section.3
NEW SECTION. Sec. 3. The following acts or parts of acts are 4
each repealed:5
(1) RCW 43.41.030 (Purpose) and 1979 c 151 s 109 & 1969 ex.s. c 6
239 s 1; 7
(2) RCW 43.41.040 (Definitions) and 1993 c 500 s 4, 1979 c 151 s 8
110, & 1969 ex.s. c 239 s 2; 9
(3) RCW 43.41.050 (Office of financial management created — 10
Transfer of powers, duties, and functions) and 1979 c 151 s 111 & 11
1969 ex.s. c 239 s 3; 12
(4) RCW 43.41.060 (Director— Appointment— Salary— Vacancy— 13
Delegation of powers and duties) and 2009 c 549 s 5118, 1979 c 151 s 14
112, & 1969 ex.s. c 239 s 4; 15
(5) RCW 43.41.070 (Personnel) and 1969 ex.s. c 239 s 5;16
(6) RCW 43.41.080 (Deputy and assistant directors) and 1979 c 151 17
s 113 & 1969 ex.s. c 239 s 6; 18
(7) RCW 43.41.100 (Director's powers and duties) and 2009 c 549 s 19
5119, 1979 c 151 s 114, & 1969 ex.s. c 239 s 8; 20
(8) RCW 43.41.102 (Director— Contract for collection and 21
tabulation of census block statistics) and 1979 c 151 s 115 & 1977 22
ex.s. c 128 s 5; 23
(9) RCW 43.41.104 (Settlement and payment of accounts — Duty to 24
require) and 1979 c 151 s 116 & 1977 ex.s. c 144 s 10;25
(10) RCW 43.41.106 (Settlement and payment of accounts — Authority 26
to require testimony and evidence) and 2009 c 549 s 5120, 1979 c 151 27
s 117, & 1977 ex.s. c 144 s 11; 28
(11) RCW 43.41.110 (Powers and duties of office of financial 29
management) and 2011 1st sp.s. c 43 s 510, 2002 c 332 s 23, 1981 2nd 30
ex.s. c 4 s 13, & 1979 c 10 s 3; 31
(12) RCW 43.41.113 (Personnel policy and application of civil 32
service laws) and 2015 3rd sp.s. c 1 s 321 & 2011 1st sp.s. c 43 s 33
430; 34
(13) RCW 43.41.120 (Advisory or coordinating councils) and 35
1975-'76 2nd ex.s. c 34 s 114 & 1969 ex.s. c 239 s 12;36
(14) RCW 43.41.160 (State health care cost containment policies) 37
and 2011 1st sp.s. c 15 s 70 & 1986 c 303 s 11; 38
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(15) RCW 43.41.170 (Budgeting process — Agencies implementing 1
energy conservation to retain cost savings) and 1989 c 11 s 15 & 1986 2
c 325 s 3; 3
(16) RCW 43.41.180 (Electronic funds and information transfer — 4
State agency use) and 1993 c 500 s 2; 5
(17) RCW 43.41.260 (Monitoring enrollee level in basic health 6
plan and medicaid caseload of children— Funding levels adjustment) and 7
2011 1st sp.s. c 15 s 71, 2009 c 479 s 28, & 1995 c 265 s 21;8
(18) RCW 43.41.270 (Natural resource-related and environmentally 9
based grant and loan programs — Administration and monitoring 10
assistance) and 2020 c 20 s 1050 & 2009 c 345 s 12;11
(19) RCW 43.41.275 (State agency employment— Disability employment12
— Reporting requirements) and 2023 c 148 s 4 & 2015 c 204 s 3;13
(20) RCW 43.41.391 (K-20 network — Duty to govern and oversee 14
technical design, implementation, and operation) and 2024 c 54 s 41, 15
2015 3rd sp.s. c 1 s 214, & 2011 1st sp.s. c 43 s 718;16
(21) RCW 43.41.392 (K-20 operations cooperative — Maintained by 17
office) and 2011 1st sp.s. c 43 s 719; 18
(22) RCW 43.41.393 (Technical plan of the K-20 telecommunications 19
system and ongoing system enhancements — Contents) and 2017 c 52 s 14, 20
2015 3rd sp.s. c 1 s 215, & 2011 1st sp.s. c 43 s 720;21
(23) RCW 43.41.394 (Oversight of technical aspects of K-20 22
network) and 2012 c 229 s 586 & 2011 1st sp.s. c 43 s 721;23
(24) RCW 43.41.399 (Education technology revolving fund) and 2015 24
3rd sp.s. c 1 s 216, 2011 1st sp.s. c 43 s 722, 2004 c 276 s 910, 25
1999 c 285 s 10, & 1997 c 180 s 1; 26
(25) RCW 43.41.400 (Education data center) and 2021 c 164 s 15, 27
2017 3rd sp.s. c 6 s 223, 2016 c 72 s 108, 2012 c 229 s 585, 2009 c 28
548 s 201, & 2007 c 401 s 3; 29
(26) RCW 43.41.405 (K-12 data— Securing federal funds) and 2009 c 30
548 s 204; 31
(27) RCW 43.41.410 (State support for students at institutions of 32
higher education— Information) and 2012 c 229 s 301;33
(28) RCW 43.41.415 (Development of methods and protocols for 34
measuring educational costs — Reports) and 2012 c 229 s 303, 2011 1st 35
sp.s. c 11 s 105, 2004 c 275 s 15, 1995 1st sp.s. c 9 s 7, 1992 c 231 36
s 5, & 1989 c 245 s 3; 37
(29) RCW 43.41.420 (Undergraduate and graduate educational costs— 38
Reports to regents and trustees) and 2012 c 229 s 304;39
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(30) RCW 43.41.423 (Extended student financial aid — Reports on 1
impact) and 2024 c 323 s 6; 2
(31) RCW 43.41.425 (Program to certify employment for public 3
service loan forgiveness — Awareness materials — Statewide initiative) 4
and 2024 c 2 s 3, 2023 c 470 s 3016, & 2022 c 248 s 3;5
(32) RCW 43.41.430 (Information technology investment pool — 6
Information technology projects — Reports) and 2024 c 54 s 52 & 2013 7
2nd sp.s. c 33 s 5; 8
(33) RCW 43.41.433 (Information technology investment revolving 9
account) and 2018 c 299 s 901 & 2017 3rd sp.s. c 1 s 950;10
(34) RCW 43.41.435 (Enumeration data used for population 11
estimates— Destruction) and 2014 c 14 s 2; 12
(35) RCW 43.41.440 (Statewide information technology system 13
development revolving account — Contracts for enterprise information 14
technology systems — "Enterprise information technology system" 15
defined) and 2024 c 54 s 42 & 2015 3rd sp.s. c 1 s 502;16
(36) RCW 43.41.450 (Office of financial management central 17
service account) and 2023 c 435 s 1, 2022 c 297 s 953, 2017 3rd sp.s. 18
c 1 s 968, & 2016 sp.s. c 36 s 927; 19
(37) RCW 43.41.455 (State agency office relocation pool account) 20
and 2017 3rd sp.s. c 1 s 949; 21
(38) RCW 43.41.460 (Military recruitment program for veterans — 22
Development— Report) and 2017 c 192 s 4; 23
(39) RCW 43.41.470 (Washington climate corps network) and 2023 c 24
231 s 2; 25
(40) RCW 43.41.472 (Washington climate corps network — Powers and 26
duties) and 2023 c 231 s 3; and 27
(41) RCW 43.41.970 (Federal requirements for receipt of federal 28
funds) and 1969 ex.s. c 239 s 20. 29
NEW SECTION. Sec. 4. This act takes effect July 1, 2026.30
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