Budget sustainability

AN ACT Relating to budget sustainability; and amending RCW 1
43.88.030 and 43.88.055. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 43.88.030 and 2025 c 414 s 8034 are each amended to 4
read as follows: 5
(1) The director of financial management shall provide all 6
agencies with a complete set of instructions for submitting biennial 7
budget requests to the director at least three months before agency 8
budget documents are due into the office of financial management. The 9
budget document or documents shall consist of the governor's budget 10
message which shall be explanatory of the budget and shall contain an 11
outline of the proposed financial policies of the state for the 12
ensuing fiscal period, as well as an outline of the proposed six-year 13
financial policies where applicable, and shall describe in connection 14
therewith the important features of the budget. The biennial budget 15
document or documents shall also describe performance indicators that 16
demonstrate measurable progress towards priority results. The message 17
shall set forth the reasons for salient changes from the previous 18
fiscal period in expenditure and revenue items and shall explain any 19
major changes in financial policy. Attached to the budget message 20
shall be such supporting schedules, exhibits and other explanatory 21
S-5856.1
SENATE BILL 6357
State of Washington 69th Legislature 2026 Regular Session
By Senators Robinson, Stanford, and Dhingra
Read first time 03/03/26. Referred to Committee on Ways & Means.
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material in respect to both current operations and capital 1
improvements as the governor shall deem to be useful to the 2
legislature. The budget document or documents shall set forth a 3
proposal for expenditures in the ensuing fiscal period, or six-year 4
period where applicable, based upon the estimated revenues and 5
caseloads as approved by the economic and revenue forecast council 6
and caseload forecast council or upon the estimated revenues and 7
caseloads of the office of financial management for those funds, 8
accounts, sources, and programs for which the forecast councils do 9
not prepare an official forecast. Revenues shall be estimated for 10
such fiscal period from the source and at the rates existing by law 11
at the time of submission of the budget document, including the 12
supplemental budgets submitted in the even-numbered years of a 13
biennium. However, the estimated revenues and caseloads for use in 14
the governor's budget document may be adjusted to reflect budgetary 15
revenue transfers and revenue and caseload estimates dependent upon 16
budgetary assumptions of enrollments, workloads, and caseloads. All 17
adjustments to the approved estimated revenues and caseloads must be 18
set forth in the budget document. The governor may additionally 19
submit, as an appendix to each supplemental, biennial, or six-year 20
agency budget or to the budget document or documents, a proposal for 21
expenditures in the ensuing fiscal period from revenue sources 22
derived from proposed changes in existing statutes.23
The budget document or documents shall also contain:24
(a) Revenues classified by fund and source for the immediately 25
past fiscal period, those received or anticipated for the current 26
fiscal period, and those anticipated for the ensuing biennium;27
(b) The undesignated fund balance or deficit, by fund;28
(c) Such additional information dealing with expenditures, 29
revenues, workload, performance, and personnel as the legislature may 30
direct by law or concurrent resolution; 31
(d) Such additional information dealing with revenues and 32
expenditures as the governor shall deem pertinent and useful to the 33
legislature; 34
(e) Tabulations showing expenditures classified by fund, 35
function, and agency; 36
(f) The expenditures that include nonbudgeted, nonappropriated 37
accounts outside the state treasury; 38
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(g) Identification of all proposed direct expenditures to 1
implement the Puget Sound water quality plan under chapter 90.71 RCW, 2
shown by agency and in total; and 3
(h) Tabulations showing each postretirement adjustment by 4
retirement system established after fiscal year 1991, to include, but 5
not be limited to, estimated total payments made to the end of the 6
previous biennial period, estimated payments for the present 7
biennium, and estimated payments for the ensuing biennium.8
(2) The budget document or documents shall include detailed 9
estimates of all anticipated revenues applicable to proposed 10
operating or capital expenditures and shall also include all proposed 11
operating or capital expenditures. The total of beginning 12
undesignated fund balance and estimated revenues less working capital 13
and other reserves shall equal or exceed the total of proposed 14
applicable expenditures. The budget document or documents shall 15
further include: 16
(a) Interest, amortization and redemption charges on the state 17
debt; 18
(b) Payments of all reliefs, judgments, and claims;19
(c) Other statutory expenditures; 20
(d) Expenditures incident to the operation for each agency;21
(e) Revenues derived from agency operations; 22
(f) Expenditures and revenues shall be given in comparative form 23
showing those incurred or received for the immediately past fiscal 24
period and those anticipated for the current biennium and next 25
ensuing biennium; 26
(g) A showing and explanation of amounts of general fund and 27
other funds obligations for debt service and any transfers of moneys 28
that otherwise would have been available for appropriation;29
(h) Common school expenditures on a fiscal-year basis;30
(i) A showing, by agency, of the value and purpose of financing 31
contracts for the lease/purchase or acquisition of personal or real 32
property for the current and ensuing fiscal periods; and33
(j) A showing and explanation of anticipated amounts of general 34
fund and other funds required to amortize the unfunded actuarial 35
accrued liability of the retirement system specified under chapter 36
41.45 RCW, and the contributions to meet such amortization, stated in 37
total dollars and as a level percentage of total compensation.38
(3) The governor's operating budget document or documents shall 39
reflect the statewide priorities as required by RCW 43.88.090.40
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(4) The governor's operating budget document or documents shall 1
identify activities that are not addressing the statewide priorities.2
(5)(a) Beginning in the 2021-2023 fiscal biennium, the governor's 3
operating budget document or documents submitted to the legislature 4
must leave, in total, a positive ending fund balance in the general 5
fund and related funds. 6
(b) Beginning in the 2021-2023 fiscal biennium, the projected 7
maintenance level of the governor's operating budget document or 8
documents submitted to the legislature must not exceed the available 9
fiscal resources for the next ensuing fiscal biennium.10
(c) For purposes of this subsection: 11
(i) "Available fiscal resources" means the beginning general fund 12
and related funds balances and any fiscal resources estimated for the 13
general fund and related funds, adjusted for proposed revenue 14
legislation, and with forecasted revenues adjusted to the greater of 15
(A) the official general fund and related funds revenue forecast for 16
the ensuing biennium, or (B) the official general fund and related 17
funds forecast for the second fiscal year of the current fiscal 18
biennium, increased by 4.5 percent for each fiscal year of the 19
ensuing biennium. For operating budgets proposed for the 2027-2029 20
and 2029-2031 fiscal biennia, "available fiscal resources" means the 21
beginning general fund and related funds balances and any fiscal 22
resources estimated for the general fund and related funds, adjusted 23
for proposed revenue legislation, and with forecasted revenues based 24
on the official general fund revenue forecast.25
(ii) "Projected maintenance level" means estimated appropriations 26
necessary to maintain the continuing costs of program and service 27
levels either funded in the governor's budget document or documents 28
submitted to the legislature or mandated by other state or federal 29
law, adjusted by the estimated cost of proposed executive branch 30
legislation, and the amount of any general fund moneys projected to 31
be transferred to the budget stabilization account pursuant to 32
Article VII, section 12 of the state Constitution. Proposed executive 33
branch legislation does not include proposals by institutions of 34
higher education, other separately elected officials, or other 35
boards, commissions, and offices not under the authority of the 36
governor that are not funded or assumed in the governor's budget 37
document or documents submitted to the legislature.38
(iii) "Related funds" has the meaning defined in RCW 43.88.055.39
(d) (b) of this subsection (5) does not apply:40
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(i) To any governor-proposed legislation submitted to the 1
legislature that makes net reductions in general fund and related 2
funds appropriations to prevent the governor from making across-the-3
board reductions in allotments for these particular funds as provided 4
in RCW 43.88.110(10); or 5
(ii) In a fiscal biennium for which the governor proposes 6
appropriations from the budget stabilization account pursuant to 7
Article VII, section 12(d)(ii) of the state Constitution.8
(6) A separate capital budget document or schedule shall be 9
submitted that will contain the following: 10
(a) A statement setting forth a long-range facilities plan for 11
the state that identifies and includes the highest priority needs 12
within affordable spending levels; 13
(b) A capital program consisting of proposed capital projects for 14
the next biennium and the two biennia succeeding the next biennium 15
consistent with the long-range facilities plan. Insomuch as is 16
practical, and recognizing emergent needs, the capital program shall 17
reflect the priorities, projects, and spending levels proposed in 18
previously submitted capital budget documents in order to provide a 19
reliable long-range planning tool for the legislature and state 20
agencies; 21
(c) A capital plan consisting of proposed capital spending for at 22
least four biennia succeeding the next biennium; 23
(d) A strategic plan for reducing backlogs of maintenance and 24
repair projects. The plan shall include a prioritized list of 25
specific facility deficiencies and capital projects to address the 26
deficiencies for each agency, cost estimates for each project, a 27
schedule for completing projects over a reasonable period of time, 28
and identification of normal maintenance activities to reduce future 29
backlogs; 30
(e) A statement of the reason or purpose for a project;31
(f) Verification that a project is consistent with the provisions 32
set forth in chapter 36.70A RCW; 33
(g) A statement about the proposed site, size, and estimated life 34
of the project, if applicable; 35
(h) Estimated total project cost; 36
(i) For major projects valued over five million dollars, 37
estimated costs for the following project components: Acquisition, 38
consultant services, construction, equipment, project management, and 39
other costs included as part of the project. Project component costs 40
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shall be displayed in a standard format defined by the office of 1
financial management to allow comparisons between projects;2
(j) Estimated total project cost for each phase of the project as 3
defined by the office of financial management; 4
(k) Estimated ensuing biennium costs; 5
(l) Estimated costs beyond the ensuing biennium;6
(m) Estimated construction start and completion dates;7
(n) Source and type of funds proposed; 8
(o) Estimated ongoing operating budget costs or savings resulting 9
from the project, including staffing and maintenance costs;10
(p) For any capital appropriation requested for a state agency 11
for the acquisition of land or the capital improvement of land in 12
which the primary purpose of the acquisition or improvement is 13
recreation or wildlife habitat conservation, the capital budget 14
document, or an omnibus list of recreation and habitat acquisitions 15
provided with the governor's budget document, shall identify the 16
projected costs of operation and maintenance for at least the two 17
biennia succeeding the next biennium. Omnibus lists of habitat and 18
recreation land acquisitions shall include individual project cost 19
estimates for operation and maintenance as well as a total for all 20
state projects included in the list. The document shall identify the 21
source of funds from which the operation and maintenance costs are 22
proposed to be funded; 23
(q) For any capital budget request for funding in the 2025-2027 24
or 2027-2029 fiscal biennia for which the project cost is 25
substantially increased, a statement detailing the amount and reason 26
for the additional cost. If the increased cost is the result of a 27
change in design, the agency must also submit a construction cost 28
estimate for the design as originally submitted. For purposes of this 29
subsection (6)(q), "substantially increased" means total estimated 30
project costs are more than 15 percent above those listed in the 31
prior agency budget request and for which the legislature relied in 32
making a funding decision for design or construction, adjusted for 33
C-100 inflation factors; 34
(r) Such other information bearing upon capital projects as the 35
governor deems to be useful; 36
(s) Standard terms, including a standard and uniform definition 37
of normal maintenance, for all capital projects; and38
(t) Such other information as the legislature may direct by law 39
or concurrent resolution. 40
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For purposes of this subsection (6), the term "capital project" 1
shall be defined subsequent to the analysis, findings, and 2
recommendations of a joint committee comprised of representatives 3
from the house capital appropriations committee, senate ways and 4
means committee, legislative evaluation and accountability program 5
committee, and office of financial management. 6
(7) No change affecting the comparability of agency or program 7
information relating to expenditures, revenues, workload, performance 8
and personnel shall be made in the format of any budget document or 9
report presented to the legislature under this section or RCW 10
43.88.160(1) relative to the format of the budget document or report 11
which was presented to the previous regular session of the 12
legislature during an odd-numbered year without prior legislative 13
concurrence. Prior legislative concurrence shall consist of (a) a 14
favorable majority vote on the proposal by the standing committees on 15
ways and means of both houses if the legislature is in session or (b) 16
a favorable majority vote on the proposal by members of the 17
legislative evaluation and accountability program committee if the 18
legislature is not in session. 19
Sec. 2. RCW 43.88.055 and 2021 c 199 s 103 are each amended to 20
read as follows: 21
(1) The legislature must adopt a four-year balanced budget as 22
follows: 23
(a) Beginning in the 2013-2015 fiscal biennium, the legislature 24
shall enact a balanced omnibus operating appropriations bill that 25
leaves, in total, a positive ending fund balance in the general fund 26
and related funds. 27
(b) Beginning in the 2013-2015 fiscal biennium, the projected 28
maintenance level of the omnibus appropriations bill enacted by the 29
legislature shall not exceed the available fiscal resources for the 30
next ensuing fiscal biennium. 31
(2) For purposes of this section: 32
(a) "Available fiscal resources" means the beginning general fund 33
and related fund balances and any fiscal resources estimated for the 34
general fund and related funds, adjusted for enacted legislation, and 35
with forecasted revenues adjusted to the greater of (i) the official 36
general fund and related funds revenue forecast for the ensuing 37
biennium, or (ii) the official general fund and related funds 38
forecast for the second fiscal year of the current fiscal biennium, 39
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increased by 4.5 percent for each fiscal year of the ensuing 1
biennium((;)). However, for operating budgets enacted by the 2
legislature for the 2027-2029 and 2029-2031 fiscal biennia, 3
"available fiscal resources" means the beginning general fund and 4
related funds balances and any fiscal resources estimated for the 5
general fund and related funds, adjusted for revenue legislation, and 6
with forecasted revenues based on the official general fund revenue 7
forecast.8
(b) "Projected maintenance level" means estimated appropriations 9
necessary to maintain the continuing costs of program and service 10
levels either funded in that appropriations bill or mandated by other 11
state or federal law, and the amount of any general fund moneys 12
projected to be transferred to the budget stabilization account 13
pursuant to Article VII, section 12 of the state Constitution((;)).14
(c) "Related funds," as used in this section, means the 15
Washington opportunity pathways account, the workforce education 16
investment account, the fair start for kids account, and the 17
education legacy trust account. 18
(3) Subsection (1)(a) and (b) of this section does not apply to 19
an appropriations bill that makes net reductions in general fund and 20
related funds appropriations and is enacted between July 1st and 21
February 15th of any fiscal year. 22
(4) Subsection (1)(b) of this section does not apply in a fiscal 23
biennium in which money is appropriated from the budget stabilization 24
account pursuant to Article VII, section 12 (d)(ii) of the state 25
Constitution. 26
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