Proposed Supplemental Budget - Fiscal Year 2025
During the 2023 legislative session, Washington enacted a biennial budget for fiscal 2024 and fiscal 2025. On December 13, Washington Governor Jay Inslee released a supplemental budget proposal for the current biennium. Total budgeted funds in the governor’s supplemental operating and transportation budgets for the biennium are $154.4 billion. The supplemental omnibus operating budget calls for $71.8 billion in near general fund spending (including the General Fund-State, Education Legacy Trust Account, WA Opportunity Pathways Account, and Workforce Education Investment Account), or $70.9 billion after assumed reversions, over the biennium. The budget is based on the state’s November 2023 revenue forecast, which projects $66.9 billion in near general fund revenue for the biennium, including $34.0 billion in fiscal 2025, a 3.6 percent annual increase over the forecasted amount for fiscal 2024. Total resources for the biennium, including the beginning fund balance and after transfers, are estimated at $73.7 billion. The budget projects a near general fund ending balance of $2.8 billion at the end of fiscal 2025, as well as a $1.3 billion balance in the state’s rainy day fund (the Budget Stabilization Account), for a total balance of $4.1 billion.
Key Budget Highlights
The governor’s supplemental budget for fiscal 2024 and fiscal 2025 calls for continued state investments in key areas including housing and homelessness, behavioral health, addressing the fentanyl and opioid crisis, climate change and K-12 education. The supplemental is based on upward revisions to the state’s revenue forecast since the original budget was adopted in 2023 and responds to rising costs for ongoing services and increased caseloads. Highlights in the governor’s supplemental budget proposal include:
Housing and Homelessness
- $100 million in capital budget bonds to continue supporting the Rapid Capital Housing Acquisition (RCHA) fund
- $24 million in operating support for local housing programs, Landlord Mitigation and Tenant Preservation programs, and other efforts
- $10 million for Rights of Way Initiative to support Department of Transportation’s efforts to clear encampment sites
Behavioral Health
- Adds $464 million to the current $1 billion biennial budget for a variety of initiatives, including $188 million for new beds in state-run facilities $113 million for reimbursement rate increases for community-based facilities
Fentanyl and Opioid Crisis
- Adds $64 million to the current $200 million budgeted for prevention and treatment strategies, with $9.5 million to tribal communities and $2.7 million to support multijurisdictional drug taskforces to backfill the Byrne Justice Assistance Grant program
Climate Change
- Proposes $941 million in new climate and clean energy investments, including $900 million supported by projected revenues generated by the Climate Commitment Act (CCA). Some of the largest CCA investments include:
- $150 million for a one-time $200 utility bill credit for low- and moderate-income residential electricity customers
- $110 million for a Clean Communities program aimed at supporting local sustainability projects in low-income and other communities hit hardest by pollution
- $100 million to install heat pumps and retrofit affordable multifamily buildings
- $136.5 million for Green Jobs and Infrastructure Catalytic Funds, including $84 million to match federal grants
- $72 million to transition state universities away from fossil fuels and improve energy efficiency
K-12 Education
- $64 million for an 11 percent wage increase for paraeducators
- $17 million in additional special education funding for school districts
Other Key Initiatives
- $150 million to further support removal of fish passage barriers on state roadways
- $31 million to restore budgeted vacancy savings for state troopers
- $10 million for grants to local governments for law enforcement recruitment and retention efforts