WASHINGTON STATE — Senate Democrats in Washington have unveiled a supplemental budget proposal for 2025 to 2027, which aims to protect core services amid a budget shortfall. The proposal avoids broad tax hikes by pulling $750 million from reserves. The budget proposal includes debated changes in childcare funding.
Democrats propose saving money in the state’s childcare subsidy program by adjusting provider payments based on actual attendance rather than holding spots. A point of contention is the funding source for the ‘Working Families Tax Credit.’ House lawmakers suggest using funds from the state’s climate program, while Senate leaders express caution, emphasizing those funds are intended for emission reduction projects.
Republicans argue the issue is with spending, not revenue. They prefer using reserves only in a recession and oppose redirecting climate funds, citing reliance on unstable revenue streams.
“This budget is more proof that Olympia has a spending problem, not a revenue problem. While it’s encouraging to see some attention given to reforms in programs that are failing children, I’m deeply concerned that the largest policy savings are taken from K-12 schools, colleges, and universities. That’s the wrong direction for Washington’s future workforce,” said Senator Nikki Torres, R-Pasco and assistant budget leader.
Senator June Robinson from the Senate Ways & Means Committee explained the rationale for using the Rainy Day Fund. “We are in a time of very slow economic growth, and our statute allows us to use funding for the Rainy Day Fund. It contemplated exactly the situation that we’re in right now, where there’s less than 1% of job growth in the state, and allowing us take from the rainy day fund with a simple majority vote,” she said.
Democrats emphasize the need to protect essential services during current budget challenges, while Republicans argue that government expanded too quickly and that Democrats are avoiding difficult decisions.
Budget leaders from both parties will meet with the House to negotiate a consensus before the session ends in mid-March
