Washington state faces budget deficit of $10B-$12B
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Washington state is facing a projected budget shortfall of $10 billion to $12 billion over four years, leaving state lawmakers with a big money problem to solve when they return to Olympia in January.
Why it matters: To close the projected budget gap, the Legislature will likely need to cut spending, raise taxes, or some mixture of both.
The big picture: The state budget pays for public schools, social services, prisons, behavioral health programs and much more, while contributing to Medicare and Medicaid.
- The current two-year operating budget spends more than $71 billion.
Catch up quick: In a letter Nov. 8, Pat Sullivan, Gov. Jay Inslee's budget director, told state agencies to come up with potential cuts.
- Sullivan said the state's budget deficit is due to three main factors: recent declines in state revenue forecasts; rising costs to maintain state programs; and an increase in the number of people receiving state services.
What's next: By Dec. 20, Inslee's office will propose a new two-year state budget that will include his ideas for closing the budget gap.
Yes, but: In January, Inslee will hand the reins to Governor-elect Bob Ferguson, who may have different spending priorities.
- State lawmakers, who will convene for a new legislative session starting Jan. 13, will later release budget proposals of their own, setting the stage for weeks of negotiation.
- A final budget agreement is expected by late April, when the Legislature is scheduled to adjourn for the year.