This week, the Legislature completes another deadline for committee activity, but the real showdown is the budget and possibly the revenue package that will go with it. Below you'll find links to the latest revenue forecasts, the House and Senate budget proposals and their tax packages. We encourage you to reach out to your legislators regarding your support for United Way funding priorities.

Latest Revenue Forecast Provides Little Hope
The latest revenue forecast by the Washington State Economic and Revenue Forecast Council has slightly good news for this biennium but worsening news for the coming years. When the latest biennium ends on June 30 of this year, total state revenue should be about $54 million higher than expected--bringing the two-year budget revenue to nearly $66.5 billion. For the next biennium (2025-27), revenue is estimated at almost $71 billion, representing a 6.8 percent increase over the previous budget cycle. But that amount is nearly $480 million shy of what was previously projected and not near enough to cover inflation and the growth in caseload and programs. One of the biggest budget uncertainties is possible reductions in federal funding for Medicaid and food assistance. 

House and Senate Budget Proposals Take Shape
The Senate Ways and Means Committee has passed SB 5167, a $78.5 billion state operating budget for 2025-2027.  Most of the budget increase covers higher costs for existing programs, services and state employee salary increases. The Senate proposal makes up the difference between spending and expected revenues through a proposed tax package and by cutting recently funded programs, such as the Imagination Library, and delaying initiatives, such as postponing when the Early Childhood Education Assistance Program (ECEAP) becomes an entitlement. The House Appropriations Committee also passed its version of the state operating budget for the next biennium, HB 1198. At $77.8 billion, the House budget makes different choices on raising revenue and funding but makes the same choice on not funding Imagination Library and ECEAP entitlement.  Currently, the Senate budget bill provides $30 million for the Community Reinvestment Project while the House budget bill provides $50 million--down from the previous biennial amount of $200 million. It's not too late to let your legislators know how you stand on these funding priorities.

Guaranteed Income Program Promotes Greater Hope and Meaning 
Another program currently absent in any of the state budget proposals is the Growing Resilience in Tacoma pilot. In a University of Pennsylvania study of Tacoma's guaranteed income program released last August, "recipients experienced deeper hope and improved courage, faith, and self-transcendence compared to non-recipients." In 2022, 110 families defined as asset-limited, income-constrained employed received $500 a month with no conditions or requirements. This program invested over $700,000 into the community.