Bill > HB2448

This bill establishes a state expenditure limit, starting in the fiscal year beginning July 1, 2027, to ensure sustainable state budgets and provide permanent tax relief for Washingtonians. The state treasurer is prohibited from issuing checks or warrants that would exceed this limit, with violations subject to penalties. The expenditure limit will be calculated based on the previous year's limit plus a "fiscal growth factor," which is defined as the average of inflation (measured by the Seattle-Tacoma-Bellevue Consumer Price Index) and population change over the prior three fiscal years. The Economic and Revenue Forecast Council will adjust and project this limit annually, and the State Treasurer will step in if the council fails to do so. The bill also outlines how the expenditure limit will be adjusted if funds are transferred out of or into the state general fund and related accounts, which include specific funds like the Washington Opportunity Pathways Account and the Workforce Education Investment Account. Importantly, the expenditure limit can be exceeded in declared natural disaster emergencies for up to 24 months with a two-thirds legislative vote and governor's approval. Additionally, any state general fund and related account revenues exceeding the expenditure limit will be deposited into a newly created "tax relief account," from which the legislature can appropriate funds for broadly based tax reductions. The bill also amends existing laws to incorporate these new provisions, including defining the fiscal growth factor and prohibiting state officers from exceeding the expenditure limit.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2448&Year=2025&Initiative=false