State revenues to reach $50B but new fees or taxes loom

The state has never had so much money to spend on government. Inslee says it is still not enough.

OLYMPIA — Fifty billion dollars.

It will soon be the subject of many conversations in hallways, hearing rooms and other Capitol hangouts as it is the amount of revenue Washington’s revved-up economy is expected to produce for use in the next state budget.

And $50 billion is a milestone figure.

No governor or Legislature has ever had that much money to spend on government services and programs.

To put in perspective, when I moved to Washington in early 2004, the economic forecast called for $22.9 billion in tax collections in the entire two-year budget cycle.

Now, the economy is already generating more than that every fiscal year.

As things stand now, Democratic Gov. Jay Inslee and the Democrat-led majorities in the House and Senate will have $50 billion to parse out in the 2019-21 budget they must adopt next year. That’s without touching the state’s $1.63 billion in cash reserves or $1.6 billion rainy day fund.

But — and you knew this was coming — they say it’s not enough.

The price of maintaining the same level of government-funded services is going up as the state’s population grows. And a few bills, like those tied to education funding and the McCleary case, are still getting paid off.

Already this year Inslee and Democratic leaders are openly expressing a desire to find new streams of revenue because there is more to cover than simply what in Olympiaspeak are known as the “carryforward” and “maintenance” level expenses of government.

For example, a few agencies need a bailout for unexpected debts.

Like the state Public Disclosure Commission. Its lawyer, the Office of the Attorney General, is churning up huge bills in pursuit of alleged scofflaws of Washington’s campaign finance laws like Tim Eyman of Mukilteo.

And the Washington State Patrol has racked up a few hundred thousand dollars in overtime and other expenses safeguarding Inslee as he bounded around the country campaigning for gubernatorial candidates and, maybe, laying the groundwork for his own 2020 bid for president.

Those bills are too small to not be paid.

What’s really going to drive the debate in Olympia are items with large price tags.

For example, Inslee’s staff negotiated new collective bargaining agreements with a slew of unions. If funded, most state employees will get raises of at least 6 percent in the next two years. The cost is $1.9 billion.

Mental and behavioral health services is another big ticket. A settlement in the Trueblood case requires the state to speed up evaluation of the mental competency of people accused of crimes and get them into treatment faster.

That won’t be cheap. The Department of Social and Health Services is looking for roughly $330 million in this biennium as a down payment on tearing down and rebuilding Western State Hospital, one of two state psychiatric hospitals. The cost of that alone could reach $800 million.

And demands will be made for more dollars to reduce homelessness, combat opioid addiction, improve forest management and protect orcas.

Inslee’s approach to making ends meet will be revealed in December when he proposes a budget for the two-year period that starts July 1, 2019. Lawmakers will consider his recommendations in the course of drafting their own spending plan in the 105-day legislative session beginning in January.

When Inslee met with The Daily Herald’s editorial board in October, he would not say what he’s contemplating. He said it’s a challenge and lawmakers are “going to have to look for money from other sources” because he won’t let them cut core government services.

While $50 billion is going to be talked about a lot very soon.

So, too, is how it’s not enough.

Jerry Cornfield: 360-352-8623; jcornfield@herald net.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

Bothell
Bothell man charged with the murder of his wife after Shoreline shooting

On Tuesday, the 43-year-old pleaded not guilty in King County Superior Court.

Five Snohomish County men named in drug and gun trafficking indictments

On Tuesday, federal and local law enforcement arrested 10 individuals in connection with three interrelated drug and gun trafficking conspiracies.

Snohomish County Sheriff Susanna Johnson speaks at a press conference outside of the new Snohomish County 911 building on Wednesday, April 30, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
County sheriff working to fix $15M in overspending

In a presentation to the County Council, Sheriff Johnson said she’s reducing overtime hours and working to boost revenue with a new 0.1% sales tax.

A Sound Transit bus at it's new stop in the shadow of the newly opened Northgate Lightrail Station in Seattle. (Kevin Clark / The Herald)
Sound Transit may add overnight bus service between Everett, Seattle

The regional transit agency is seeking feedback on the proposed service changes, set to go into effect in fall 2026.

The Edmonds School District building on Friday, Feb. 14, 2025 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Mother sues Edmonds School District after her son’s fingertip was allegedly severed

The complaint alleges the boy’s special education teacher at Cedar Way Elementary closed the door on his finger in 2023.

Pedal-free electric bikes are considered motorcycles under Washington State law (Black Press Media file photo)
Stanwood Police: Pedal-free e-bikes are motorcycles

Unlike electric-assisted bikes, they need to be registered and operated by a properly endorsed driver.

The aftermath of a vandalism incident to the Irwin family's "skeleton army" display outside their Everett, Washington home. (Paul Irwin)
Despite vandalism spree, Everett light display owners vow to press on

Four attacks since September have taken a toll on Everett family’s Halloween and Christmas cheer.

Students, teachers, parents and first responders mill about during a pancake breakfast at Lowell Elementary School in 2023 in Everett. If approved, a proposed bond would pay for a complete replacement of Lowell Elementary as well as several other projects across the district. (Ryan Berry / The Herald)
Everett school board sends bond, levy measures to Feb. ballot

The $400 million bond would pay for a new school and building upgrades, while the levy would pay for locally funded expenses like extra-curriculars and athletics.

“No Beach Access” and “By Order of the Sheriff” tow-away signs installed at Hillman Place a public right-of-way near Soundview Drive Northwest in Stanwood. (K’allen Specht)
Snohomish County judge hears arguments on petition over access to the shoreline

Snohomish County Superior Court Judge Karen Moore said she will issue a written statement on whether or not to dismiss the petition alleging the use of “ghost signs,” concrete barriers and removal of parking erased access to a public right-of-way.

Lily Lamoureux stacks Weebly Funko toys in preparation for Funko Friday at Funko Field in Everett on July 12, 2019.  Kevin Clark / The Herald)
Everett-based Funko: ‘Serious doubt’ it can continue without new owner or funding

The company made the statements during required filings to the SEC. Even so, its new CEO outlined his plan for a turnaround.

Providence Swedish is the largest health care system in western Washington, with eight hospitals and 244 clinics in the Puget Sound area. (Olivia Vanni / The Herald)
Providence to continue gender-affirming care for now, despite US bishop ban

Providence is working to understand the impacts of changes approved Wednesday to Catholic health care systems, a spokesperson said.

People walk through Explorer Middle School’s new gymnasium during an open house on Oct. 7, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett middle school celebrates opening of new gym

The celebration came as the Mukilteo School District seeks the approval of another bond measure to finish rebuilding Explorer Middle School.

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.