Bill > HB2055

This bill establishes a new state revenue limit mechanism and sets rules for managing excess revenues. The bill creates a state revenue limit committee composed of key financial officials who will calculate and adjust the state's revenue limit each year based on a new formula that considers the average of inflation and population change over the prior three fiscal years. The revenue limit will be determined by taking the previous fiscal year's state revenue limit and increasing it by the calculated fiscal growth factor. If state revenues exceed this limit, the excess funds must be transferred to the budget stabilization account. The bill also includes provisions to adjust the revenue limit if state program funding is shifted between different fund sources. Importantly, the bill modifies how the fiscal growth factor is calculated, moving from a ten-year average of state personal income to a three-year average of inflation and population change. Additionally, the bill defines key terms like "inflation" (using the Seattle-Tacoma-Bellevue Consumer Price Index) and "population change" (as reported by the office of financial management), and specifies certain "related funds" that are included in the calculation, such as the Washington opportunity pathways account and the workforce education investment account.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2055&Year=2025&Initiative=false