The proposed bill aims to reform the Washington state budgeting process by enhancing accountability and prioritizing essential state functions while imposing limitations on state spending and revenue proposals. It addresses the unsustainable growth of state operating budgets, which has not led to improved outcomes for citizens, such as declining student performance and increasing homelessness. Key amendments to existing laws, specifically RCW 43.88.030 and 43.88.055, will require the governor's budget documents to reflect a positive ending fund balance and not exceed available fiscal resources for the next biennium. The bill also introduces a new section defining "agency activity" and "program" to facilitate a zero-based budget review, ensuring that all state agency activities are evaluated for their effectiveness and necessity.

Starting in 2026, the bill mandates a structured approach to zero-based budgeting for state agencies, requiring the legislature to specify programs for review, with the goal of evaluating 20% of all state programs every biennium. Agencies will need to provide detailed analyses of selected programs, which will be considered during the budget development process alongside public hearings. Furthermore, the bill establishes a requirement for the legislature to enact appropriations for state operating expenditures in prioritized bills, beginning with debt payments and basic public education, and emphasizes the need for timely enactment of biennial appropriations bills. The act is deemed necessary for the immediate preservation of public peace, health, or safety, allowing it to take effect immediately.

Statutes affected:
Original Bill: 43.88.030, 43.88.055