The proposed bill seeks to reinstate a state expenditure limit in Washington, effective from the fiscal year beginning July 1, 2027. It establishes that the state cannot exceed a defined expenditure limit, which is based on the previous year's limit adjusted by a fiscal growth factor. The bill also requires the state treasurer to refrain from issuing checks or vouchers that would surpass this limit, with penalties for violations. Additionally, it outlines procedures for adjusting the expenditure limit in response to fund transfers or changes in program costs, ensuring accurate financial planning. The bill allows for exceeding the limit during declared emergencies, contingent upon a two-thirds legislative vote and the governor's approval.

Moreover, the bill introduces a comprehensive framework for capital budget submissions, mandating detailed project descriptions and cost breakdowns for projects exceeding five million dollars. It also establishes a "tax relief account" within the state treasury to receive excess general fund revenues at the end of each fiscal year, with funds designated exclusively for tax relief measures. This ensures that the financial relief intended for residents and businesses cannot be diverted for other purposes, reinforcing the commitment to sustainable budgeting and permanent tax relief.

Statutes affected:
Original bill: 43.135.025, 43.88.290, 82.32.385, 43.88.030