Bill > SB5151

This bill establishes a new mechanism for limiting state spending growth and providing property tax relief by tying annual state expenditures to median worker wage growth. Beginning in fiscal year 2026, the state will be prohibited from spending more than a calculated expenditure limit from the general fund and related funds, which will be determined by increasing the previous year's spending by an "annual spending growth cap" equal to the average median wage growth over the past 10 fiscal years. The Economic and Revenue Forecast Council will calculate this cap annually by December 1st. If the state exceeds revenues in the general fund beyond this expenditure limit, the excess will be used to reduce property tax rates in the following calendar year. The bill also includes provisions to adjust the expenditure limit if state program funding sources are shifted and requires the state treasurer to ensure no spending occurs beyond the established limit. Importantly, the "annual median wage" is defined as the median hourly wage for all industries except the federal government, as determined by the state employment security department, providing a stable and objective metric for calculating spending growth.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5151&Year=2025&Initiative=false