State Budget Proposals

2026 Supplemental

Operating Budget

Ranking Republican on the Operating Budget: Sen. Chris Gildon, 25th LD

The operating budget funds the day-to-day services and programs that keep state government running. It pays for public schools, higher education, public safety, health care, human services, and state employee salaries — essentially the ongoing operations that serve Washington residents each year.

OVERVIEW
  • In 2025 legislative Democrats approved a $12.3 billion package of tax increases (state + local) in response to a shortfall of approximately $7 billion*. The sheer size of the tax increases set a state record, yet the 2025-27 operating budget began moving toward negative territory soon after it was signed.
  • As a result, lawmakers arrived in Olympia for the 2026 session facing a second self-inflicted budget shortfall. Non-partisan Senate Ways and Means Committee staff estimated the gap at $1.5 billion for the current budget cycle and $4.3 billion over the four-year budget outlook.
  • Republicans believe the way to erase the shortfall is through savings and efficiencies, and forgoing needless new spending, as we advocated in the $ave Washington budget in 2025.
  • Democrats have instead proposed a budget that would increase spending by $2.3 billion, or 53% more than the $1.5 billion gap.

*Tax costs and shortfall both based on four years

BY THE NUMBERS
  • Spending in a biennium exceeds $80 billion for first time
  • Equals an 11.3% spending increase for 2025-27 biennium compared to 2023-25
    • Note: 4-yr outlook projects $81.9 billion spending level for 2027-29 biennium, which equals extraordinarily low 2.2% spending growth; historic rate of growth (15% since return of one-party rule) would equal $92 billion for 27-29 cycle
  • Net spending increase for 2025-27 biennium would rise to $1.7 billion… (for 2023-25 it was $6.4 billion net increase)
  • Since 2015-17, budget has more than doubled (from $38.2 billion to $80.1 billion = 110%) while WA median household income has grown by half (from $63,400 to $98,100 = 54%)
  • Relies heavily on one-time money: Drains unrestricted reserves by $2.4 billion; takes $750 million from rainy-day fund; transfer $395 million in capital gains revenue from capital to operating; raids $375 million from Public Works Fund
  • New taxes = $114 million (AFTER state-record $12.3 billion in taxes in 2025)
  • Suspends reality by assuming $801 million of appropriated money will NOT be spent
  • K-12 funding drops to 42.2% share of budget, lower than at time of McCleary ruling in 2012 (43.4%); Higher Ed at 7.6% share, an all-time low
  • Education (K-12 + Higher Ed) takes larger cut in policy funding than other areas, dropping it to less than 50% share of spending for the first time
OUR POSITION
  • This budget is a “house of cards” built on a shaky foundation
    • Pulls almost $4 billion from one-time sources to fund ongoing commitments
  • Democrats have irresponsibly tied this to an income tax that is unconstitutional.
  • The majority keeps talking about affordability, yet there’s no direct help in this budget
  • Proves again how Washington has a spending problem, not a revenue problem
  • Focus should be on core priorities… education, health care, public safety (“educate, medicate, incarcerate”)
    • This budget shows K-12 is NOT the highest priority for Democrats
  • Two steps in the right direction:
    • #1: Reform of Washington’s taxpayer-funded Working Connections Child Care subsidy program to save an estimated $800 million
      • This is not “slashing” support, just ending wasteful practice (SB 6353 is Robinson-Gildon reform)
      • Estimated savings is $682 million; $128 million saved by closing Biden-era loophole
    • #2: $1 billion appropriation would belatedly begin to address tort liability, WA’s fastest-growing budget issue, but it’s not enough to sustain funding for ensuing biennia
  • It says a lot that the largest cost increase in this proposal is driven not by education or health care, but by the harm to Washington residents caused by agency mismanagement…tort.

Had Democrats adopted the “$ave Washington” budget sponsored by Sen. Chris Gildon in 2025, we would not be facing yet another deficit we can’t afford to backfill and we wouldn’t be looking at an unconstitutional income tax.

OVERVIEW
  • The 2026 Senate supplemental capital budget is $723 million and funds construction and maintenance of infrastructure around Washington.
  • Follows up the $7.5 billion 2025-27 state capital budget approved unanimously by the Legislature last year.
  • Addresses a wide range of needs throughout Washington, with funding for projects related to K-12 and higher education, water infrastructure, flood responses, housing, clean energy and more.
  • Provides strong funding to help improve water infrastructure and modernize our public schools.
EDUCATION

K-12 education 

  • $3.74 million is provided for distressed schools:
    • Eatonville High School – West retaining wall and access.
    • Whitworth Orca K-8 School roof replacement.
  • $5 million in new spending for school seismic safety grants.
  • $1.5 million for Healthy Kids-Healthy Schools, with the funding used for grants to support lead remediation.
  • $430,000 for school seismic safety site class assessments.

 

Higher education 

  • Washington State University receives funding for:
    • Minor works for preserving and improving campus facilities.
    • Cooling and electrical upgrades to Ensminger Pavilion.
    • Spokane Team Health Education Building renovation.
    • WSU Creamery lighting and equipment replacement.
  • Central Washington University receives funding for its electrical feeder line to support the growth of campus and geothermal energy.
  • Eastern Washington University receives funding for minor works to preserve and improve campus facilities.
  • Western Washington University receives funding for:
    • Minor works for preserving and improving campus facilities.
    • Preventative maintenance for building system repairs.
  • Community and technical college system:
    • Cascadia Community College: CC5 Gateway Building.
    • Lower Columbia College: David Story Field improvements.
    • Spokane Community College: Main Building renovation of east wing.
LAW ENFORCEMENT
  • Over $1 million is allocated for Pasco Regional Police Academy improvements, including modernizing academy facilities and expanding usable space.
  • $350,000 for the Washington State Criminal Justice Training Commission’s Burien campus indoor shooting range.
  • $252,000 for the Criminal Justice Training Commission’s ADA upgrades at its Burien campus
HOUSING & INFRASTRUCTURE

Affordable housing

  • With affordable housing still a challenge for many Washingtonians, the Senate capital budget provides strong funding for housing needs.
  • It has $150 million for housing and homelessness.
    • $128.3 million is allocated from the Housing Trust Fund for housing projects in both western and eastern Washington.
    • $9.919 million is directed to affordable housing supply and preservation.

Local infrastructure 

  • $23.453 million is provided for local and community projects, with 81 different projects receiving funding across Washington.
AGRICULTURE & NATURAL RESOURCES

Agriculture

  • $10 million is provided for cost-share agreements with dairy-farm owners for anaerobic digester development and maintenance projects.
  • There is $4.636 million for grants to farmers to buy climate-smart agricultural equipment to reduce on-farm carbon emissions and increase carbon sequestration.
  • $2.186 million is provided for the design of a new WSDA Plant Services Lab at the WSU campus in Prosser.
  • $400,000 is funded for WSU’s soil health research infrastructure, specifically its long-term agroecological research and extension sites (LTARE):
    • $300,000 to pay for two mobile greenhouse gas monitoring units.
    • $100,000 to bring Othello LTARE online with construction of critical irrigation infrastructure.

Natural resources 

  • $3.2 million is provided to address tire-pile cleanup and prevention, including cleanup of the Twin Bridges Road tire-pile site near Richland.
  • $630,000 is provided for a new welcome center and stormwater drainage improvements at Millersylvania State Park south of Olympia following flooding there.
  • $4.2 million is provided for small, family-forest landowners to replace and remove stream crossing structures, such as culverts, to improve fish passage.
FLOOD RESPONSE & WATER SUPPLY

Flood response  

  • There is $8.6 million in funding for the Military Department to provide rental assistance and home repair and replacement for individuals recovering from the December 2025 floods.
  • $3.945 million is provided for grants to counties for the removal of debris in rivers and other waterways related to the December 2025 floods.
  • $2 million is provided for grants to six counties (King, Lewis, Pierce, Skagit, Snohomish and Whatcom) to evaluate the counties’ risks and needs for flood response, preparedness and prevention.

 

Water supply 

  • $12.177 million is provided for statewide water conservation projects, including:
    • Kennewick Irrigation District main canal lining.
    • Kittitas Reclamation District South.
    • Mill Creek passage – 3rd to Colville.
    • Roza Canal floor replacement.
    • Roza Canal sealing project.
    • Touchet River mile 42.
    • Waynita Creek restoration.
    • Water system efficiency leak detection and repairs.
  • $7.948 million goes to local water-infrastructure projects, including:
    • Algona water system improvements design.
    • Alice Bay tidegate replacement.
    • Bradshaw pump station modernization.
    • Chehalis River irrigation project.
    • Hannah Heights water supply.
    • Lorenzan Creek daylighting and fish passage.
    • No Name Slough tidegate replacement.
    • Othello water supply.
    • Oxbow Basin study.
    • Port Orchard water system consolidation.
    • Scatter Creek irrigation project and pipeline project.
    • Skagit District 15 irrigation project.
    • Skookumchuck River irrigation fish screen project.
    • Skookumchuck River water conservation.

Capital Budget

Ranking Republican on the Capital Budget: Sen. Mark Schoesler, 9th LD

The capital budget invests in long-term physical infrastructure across the state. It funds the construction, renovation, and repair of public buildings and facilities, including schools, universities, behavioral health facilities, housing projects, water systems, and other community assets.

Transportation Budget

Ranking Republican on the Transportation Budget: Sen. Curtis King, 14th LD

The transportation budget supports the state’s roads, bridges, ferries, and transit systems. It funds highway construction and preservation, ferry operations, public transportation grants, and transportation safety projects to help move people and goods efficiently and safely throughout the state.

OVERVIEW
  • The Senate’s supplemental transportation budget is a bipartisan plan that focuses on preservation and maintenance, with bonding and no increase in the gas tax. This budget takes a step forward in addressing the challenges of Washington’s transportation system.
  • Many of our highways and bridges are aging and in need of repairs. This budget will help repair our highway infrastructure while creating thousands of good-paying jobs.
  • This budget also provides funding to help repair damage from last December’s flooding, with $15 million for state highway recovery and $45 million for local highway recovery ($30 million for county roads and $15 million for local roads).
FUNDING
  • Provides an additional $1.5 billion in funding over the $15.5 billion that was in the two-year budget approved by the Legislature last year, for a total of $17 billion for the biennium. (The House supplemental transportation budget provides $16.5 billion in funding.)
  • Comes out a week after the February revenue forecast shows that state transportation revenue is down $101 million compared to the November 2025 forecast. The Senate budget addresses the revenue decrease by leveraging the remaining capacity of previously authorized bonds.
    • The Senate supplemental budget relies on $1.1 billion in new bond sales to be used on preservation projects over the next six years, as well as selling currently authorized bonds. In addition to the bond money, there is $400 million that will be held in reserve for program cost increases (construction inflation).
PROJECTS

Preservation  

  • Offers an additional $465 million for highway preservation in the current two-year budget cycle, followed by $410 million in the 2027-29 budget and $500 million in the 2029-31 budget. This compares to the House transportation budget providing $300 million in the current budget and $430 million in the 2027-29 budget.

 

Disaster relief

  • Provides $30 million as a loan to the County Road Administration Board (CRAB) for county road disaster relief. This money is expected to be paid back by federal disaster relief funds. The loan will be forgiven if no federal money appears.

 

Ferries

  • Increases spending for maintaining the state ferries system by $100 million, including funding to create a dedicated team to fix ferry boats when they break down, expanding the Bainbridge Island maintenance facility to fix unexpected breakdowns and upgrading the ferry terminal at Fauntleroy in Seattle to address traffic backups and vulnerability to earthquakes.
  • Almost $13.1 million more is provided to buy new hybrid-electric vessels, plus another $31 million going toward electrifying the Seattle, Bainbridge and Clinton ferry terminals.

 

Dredging

  • Provides $15 million for Columbia River dredging of the federal navigation channel downriver from Vancouver.

 

State Patrol

  • Provides $2.7 million for State Patrol trooper training. This amount should help the State Patrol reach full staffing for the first time in more than a decade.