Gov. Jay Inslee talks to reporters about ongoing budget negotiations Tuesday in Olympia. (Rachel La Corte / Associated Press)

Gov. Jay Inslee talks to reporters about ongoing budget negotiations Tuesday in Olympia. (Rachel La Corte / Associated Press)

With budget agreement, state shutdown apparently averted

OLYMPIA — Shortly before dawn Wednesday, lawmakers reached an “agreement in principle” on a new state budget they say will satisfy a Supreme Court mandate on education funding and avert an unprecedented government shutdown.

They reportedly reached consensus around 4 a.m. and notified Gov. Jay Inslee a couple of hours later. His office announced the deal first in a press release noting the agreement covers “spending and resource levels.”

But the content of the two-year spending plan remained largely a mystery throughout the day as House and Senate leaders refused to reveal details until they are shared with lawmakers Thursday morning.

That could happen as early as 10 a.m. when the Democratic and Republican caucuses in each chamber are slated to meet, legislative leaders said.

If it does, then around noon they expect the public to get a look at some of the blueprint of how the state will spend an amount in the neighborhood of $44 billion. The single biggest chunk will be for the public school system.

The actual budget may not be completely written until Friday. That won’t leave much time for legislators to digest details before voting on it. Lawmakers must make sure it is delivered to Inslee for signing before midnight to assure no interruption of government services.

“This is not an ideal situation,” said House Majority Leader Pat Sullivan, D-Covington, who said they negotiated until 6:30 a.m. Wednesday. “We also want to be sure the budget we put together is right.”

First-year Sen. Guy Palumbo, D-Maltby, called the process “very disheartening” and expressed deep concern about not having enough time to vet components with civic leaders and educators he represents in parts of Snohomish County and King County.

Sen. Marko Liias, D-Mukilteo, didn’t express the same degree of worry.

“If we can avoid a government shutdown and give every kid a chance at a great education, I would call that a win,” he said, adding “it sounds like” the deal accomplishes both.

Wednesday’s announcement came on the eighth day of a third special session, the 173rd day of what’s been a legislative marathon.

It is about a day-and-a-half later than in 2015 when the Legislature also reached the brink of a shutdown, said House Minority Leader Dan Kristiansen, R-Snohomish.

Nonetheless, he never fretted about a shuttering of state agencies.

“This is the closest we’ve ever come to one,” he said. It would be “irresponsible for us to allow that to happen.”

When the agreement becomes public, many will look to see how the Democrat-controlled House and Republican-led Senate agreed to amply fund public schools by the court’s Sept. 1, 2018, deadline.

In the regular session, the House passed a $44.6 billion spending plan and the Senate approved a $43.3 billion blueprint. Negotiators for the House met with their counterparts in the Senate, where a coalition of 24 Republicans and one Democrat comprise the majority. They spent the past two months trying to reconcile differences.

The major sticking point has been how the state complies with McCleary. Lawmakers have said they may need to put an additional $2 billion into schools in this budget and another $5 billion in the next to satisfy the court. Most of the money in the next two years is to cover the state’s share of salaries of teachers, staff and administrators, which school districts now pay with their local levies.

An increase in the statewide property tax will be one source of money, Kristiansen said. There will be some alterations to local levies too, though he declined to say how much. The result will be some people will see their net property taxes go up and others will see theirs go down, Kristiansen said.

On Thursday, lawmakers will receive information for each school district they represent showing how the changes affect property tax rates within those districts, as well as how much more state money will flow to the schools, he said.

“Everybody will see a net increase in terms of how much state money is going to districts,” Kristiansen said. “We believe we’re really going to solve the problem.”

Sullivan provided one other key detail Wednesday: the property tax increase will not be subject to voter approval as Senate Republicans proposed.

Meanwhile Wednesday, negotiations continued on a possible legislative response to the Supreme Court’s Hirst decision involving water rights and the drilling of wells. Absent an agreement, Senate Republicans won’t negotiate on a new two-year capital construction budget. That could mean lawmakers will need to vote on a bare-bones capital plan before midnight Friday to keep funds flowing to previously approved projects and grants.

Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com. Twitter: @dospueblos.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Police Cmdr. Scott King answers questions about the Flock Safety license plate camera system on Thursday, June 5, 2025 in Mountlake Terrace, Washington. (Olivia Vanni / The Herald)
Mountlake Terrace approves Flock camera system after public pushback

The council approved the $54,000 license plate camera system agreement by a vote of 5-2.

Cascadia College Earth and Environmental Sciences Professor Midori Sakura looks in the surrounding trees for wildlife at the North Creek Wetlands on Wednesday, June 4, 2025 in Bothell, Washington. (Olivia Vanni / The Herald)
Cascadia College ecology students teach about the importance of wetlands

To wrap up the term, students took family and friends on a guided tour of the North Creek wetlands.

Community members gather for the dedication of the Oso Landslide Memorial following the ten-year remembrance of the slide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
The Daily Herald garners 6 awards from regional journalism competition

The awards recognize the best in journalism from media outlets across Alaska, Idaho, Montana, Oregon and Washington.

Edmonds Mayor Mike Rosen goes through an informational slideshow about the current budget situation in Edmonds during a roundtable event at the Edmonds Waterfront Center on Monday, April 7, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds mayor recommends $19M levy lid lift for November

The city’s biennial budget assumed a $6 million levy lid lift. The final levy amount is up to the City Council.

A firefighting helicopter carries a bucket of water from a nearby river to the Bolt Creek Fire on Saturday, Sep. 10, 2022, on U.S. 2 near Index, Washington. (Ryan Berry / The Herald)
How Snohomish County property owners can prepare for wildfire season

Clean your roofs, gutters and flammable material while completing a 5-foot-buffer around your house.

(City of Everett)
Everett’s possible new stadium has a possible price tag

City staff said a stadium could be built for $82 million, lower than previous estimates. Bonds and private investment would pay for most of it.

Jennifer Humelo, right, hugs Art Cass outside of Full Life Care Snohomish County on Wednesday, May 28, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
‘I’ll lose everything’: Snohomish County’s only adult day health center to close

Full Life Care in Everett, which supports adults with disabilities, will shut its doors July 19 due to state funding challenges.

Logo for news use featuring the municipality of Lake Stevens in Snohomish County, Washington. 220118
Judge rules in favor of sewer district in Lake Stevens dispute

The city cannot assume the district earlier than agreed to in 2005, a Snohomish County Superior Court judge ruled Tuesday.

Herald staff photo by Michael O'Leary 070807
DREAMLINER - The first Boeing 787 is swarmed by the crowd attending the roll out of the plane in on July 8, 2007 at the Boeing assembly facility in Everett.
Plane in Air India crash tragedy was built in Everett

The Boeing 787 Dreamliner in the crash that killed more than 200 people was shipped from Everett to Air India in 2014.

Photo courtesy of Kristi Nebel
Folk duo Steve and Kristi Nebel will be among the musical acts performing at the Edmonds Arts Festival, which takes place Friday through Sunday.
Photo courtesy of Kristi Nebel
Folk duo Steve and Kristi Nebel will be among the musical acts performing at the Edmonds Arts Festival, which takes place Friday through Sunday.
Coming events in Snohomish County

Send calendar submissions for print and online to features@heraldnet.com. To ensure your… Continue reading

Everett council approves another $4.8M in stadium spending

The money will pay for more detailed design work and initial costs related to acquiring the land needed to build the project.

The Office of Superintendent of Public Instruction faces a lawsuit from a former employee alleging wrongful termination. (Photo by Bill Lucia/Washington State Standard)
Ex-Washington state worker claims she was fired over school board vote on trans athletes

Darby Kaikkonen has sued the Office of Superintendent of Public Instruction and Superintendent Chris Reykdal, alleging retaliation and wrongful termination.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.