Gov. Jay Inslee speaks before signing multiple bills Tuesday, April 25, 2023, at the Capitol in Olympia, Washington. (AP Photo/Lindsey Wasson, File)

Gov. Jay Inslee speaks before signing multiple bills Tuesday, April 25, 2023, at the Capitol in Olympia, Washington. (AP Photo/Lindsey Wasson, File)

Governor pitches budget plan with $2.5B in new spending

Lawmakers will consider his proposals when they convene in January.

By Jerry Cornfield / Washington State Standard

Washington Gov. Jay Inslee on Wednesday outlined a plan to boost state spending by nearly $2.5 billion in the next 18 months with the largest sums devoted to increasing behavioral health services, reducing homelessness, and combating climate change.

His proposal relies on higher-than-expected tax collections and robust proceeds from the sale of pollution allowances. It would supplement spending in the operating, capital and transportation budgets adopted by the Legislature earlier this year. Washington runs on two-year budget cycles with the current one ending June 30, 2025.

The three-term Democratic governor wants to pour another $1 billion into programs in the $69.8 billion operating budget. No new taxes are proposed.

Nearly half the increase, $448.7 million, is earmarked for increasing capacity in the state’s behavioral health system through the hiring of staff and addition of treatment beds for youth and adults. Another $140 million is sought for addressing homelessness and expanding housing and $64 million is to deal with the deadly spread of fentanyl, a powerful opioid Inslee called the “nuclear weapon of drugs.”

“This is a budget that is changing lives. There are some numbers attached to it but these numbers aren’t important,” he said at an afternoon news conference. “What’s important are the lives.”

Into the weeds

This is Inslee’s last supplemental budget before he leaves office. The spending priorities reflect the major challenges he’s encountered since taking office in 2013.

He had to ramp up spending on behavioral health, largely in response to the Trueblood case in which a federal court found the state’s long wait times for mental health treatment and evaluations violated the constitutional rights of people in jail waiting for those services before they can be deemed competent to stand trial.

“This will not be the end of our effort,” he said Wednesday. “What we have done is to do everything we can as fast as we can.”

To help those without shelter, Inslee is seeking $100 million for the state’s Rapid Capital Housing Acquisition fund, which pays for emergency housing like tiny home villages, $10 million for the Department of Transportation to continue clearing encampments on state properties and $30 million for other programs, like rent assistance and expanding legal aid for tenants facing eviction. There’s also money for mental health and substance use disorder services for people who are unhoused or transitioning out of homelessness.

Inslee was pressed Wednesday on the expense of housing and homelessness-related programs as more than $100 million has been spent and roughly 1,000 people assisted.

They are expensive and necessary investments, he said. In the long-term, the state gets housing facilities that are “permanent assets” and will serve many people for years to come, he added.

Inslee is seeking $64 million for programs serving individuals and families affected by illegal opioids on top of the roughly $200 million included in the current two-year state budget.

On education, he is proposing to drive more dollars to school districts to pay for special education by increasing the funding cap. He estimates this will make $17 million more available to districts with large numbers of students with special needs.

Also in education, Inslee is requesting $64 million to cover a $3 an hour raise for 32,000 paraeducators whom he described as “some of the most important people in our education system.”

Capital gains and climate

Washington’s new capital gains tax brought in $890 million in its first year, giving Inslee an unexpected chance to provide smaller school districts with much-needed dollars for construction and renovation projects.

By law, the first $500 million from the tax each year is deposited in the Education Legacy Trust Account, a source of dollars for public schools, early childhood education and child care. Anything above that amount goes into the common school construction account, which is part of the capital budget. Some of that excess was not spent so it can be used in a future budget cycle.

Inslee made few moves with the transportation budget, offering no suggestions on how the state should deal with soaring costs to build new ferries and freeways and remove salmon-blocking culverts. He said he was “largely following” the desires of House and Senate leaders.

On climate, Inslee’s plan contains $900 million in new expenditures using funds generated through the cap-and-trade program. Of the total, $150 million will be used to provide a one-time $200 credit on residential electricity bills for an estimated 750,000 low- and moderate-income Washington families.

Sen. Lynda Wilson, R-Vancouver, the lead budget writer for Senate Republicans, seized on the voucher as evidence that the Climate Commitment Act is causing economic pain.

“This new voucher proposal is a tacit acknowledgment of the burden the governor’s misguided and misleading policies have placed on the people of Washington,” Wilson said in a statement. “Yet this proposal provides only one-time relief, and for only a small segment of the population. We deserve better.”

Inslee’s budget is the first of three budget proposals the public will see in the weeks ahead.

The Democratic-controlled House and Senate will each present their own supplemental spending plans during the 60-day legislative session that begins Jan. 8.

Washington State Standard is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Washington State Standard maintains editorial independence. Contact Editor Bill Lucia for questions: info@washingtonstatestandard.com. Follow Washington State Standard on Facebook and Twitter.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Northwest

Jessica Hilton as a child in an undated photo. (Photo courtesy of Talis Abolins)
WA ordered to pay $42M for negligence in child sex abuse case

The state can appeal the Spokane County verdict that adds to the state’s surging ledger of lawsuit payouts.

Washington Gov. Bob Ferguson hosts a press conference on the impacts of President Donald Trump’s tariffs at Northwest Harvest on Thursday, Sept. 4, 2025, in Seattle, Washington. (Photo by Jake Goldstein-Street/Washington State Standard)
New report: WA could lose billions from Trump’s tariffs

The president’s tariffs are being litigated in court, but could put tens of thousands of jobs at risk and raise prices for everything from shoes to electricity if they go forward.

A firefighter moves hazard fuel while working on the Bear Gulch fire this summer. Many in the wildland fire community believe the leadership team managing the fire sent crews into an ambush by federal immigration agents. (Facebook/Bear Gulch Fire 2025)
Firefighters question leaders’ role in Washington immigration raid

Wildfire veterans believe top officials on the fire sent their crews into an ambush.

Everett mayor Cassie Franklin delivers her State of the City address on Friday, March 28 in Everett, Washington. (Will Geschke / The Herald)
Everett officials, among others in WA, using ChatGPT for government work

Records show that public servants have used generative AI to write emails to constituents, mayoral letters, policy documents and more.

The Washington state Capitol. (Photo by Bill Lucia/Washington State Standard)
Debate flares over WA child welfare law after rise in deaths and injuries

A Democrat who heads a House committee with jurisdiction over the policy says the Keeping Families Together Act may need to be revisited during next year’s legislative session.

Ferguson said the state would, “not be bullied or intimidated by threats and legally baseless accusations.” (Photo by Bill Lucia/Washington State Standard)
WA ‘will not be bullied or intimidated,’ Ferguson tells Bondi

The governor on Tuesday responded to a letter from the U.S. attorney general warning the state over its “sanctuary” immigration policies.

WA fire officials press for safety reforms amid accessory dwelling unit surge

Some units are getting squeezed onto lots without enough space to get emergency equipment to front doors. They seek changes in the state building code.

Paramedics and first responders attend to one of two injured workers at a worksite in 2024. Interpreters for the state Department of Labor and Industries serve those injured while working for an employer that is self-insured and does not participate in Washington’s workers’ compensation system. (Duck Paterson photo)
Washington interpreters demand state address more than $280K in missed payments

The state Department of Labor and Industries doesn’t pay these interpreters directly, but they say the agency could pressure companies to properly compensate them.

A ‘no trespassing’ sign on a fence outside the Northwest ICE Processing Center. (Photo by Grace Deng/Washington State Standard)
Tacoma detention center must pay for violating minimum wage law, appeals court affirms

The facility’s for-profit operator has argued it shouldn’t have to pay Washington minimum wage to immigrant detainees. An appeals court on Wednesday disagreed for the second time.

In all of 2024, the total number of Washingtonians with concealed carry licenses increased by fewer than 6,000, compared to about 14,000 already this year, state data show. (Photo by Aristide Economopoulos/NJ Monitor)
Concealed carry licenses in Washington jump after approval of gun permit law

The number of Washingtonians licensed to carry concealed pistols is climbing rapidly… Continue reading

Sun shines through the canopy in the Tongass National Forest. (Photo by Brian Logan/U.S. Forest Service)
Trump moves to rescind limits on logging in national forests

The ‘Roadless Rule’ has prohibited new road construction on vast swaths of federal land since 2001.

Gov. Bob Ferguson in a media availability after signing the budget on Tuesday, May 20, 2025. (Photo by Jacquelyn Jimenez Romero/Washington State Standard)
Ferguson’s top policy adviser on extended leave

It’s the latest turbulence for the Washington governor’s senior staff.

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.