Today, Gov. Jay Inslee released a balanced budget proposal that protects progress on the programs and services that working families and businesses depend on — public safety, education, early learning, housing and behavioral health.

Washington is among several states facing a budget shortfall. The costs to maintain current services and program levels for the next four years went up approximately $12.6 billion due to inflation, higher projected caseloads in several safety net programs, expansion of popular programs like early learning, and workforce costs. Revenues dipped lower than forecasted due to lagging home sales and collections for sales and capital gains taxes.

Inslee’s proposed 2025–2027 budgets hold steady or minimize reductions in priority areas including:

• Housing: $905 million for 5,000 additional affordable housing units, homelessness services, and preventing evictions and foreclosures.
• Behavioral health: $719 million to continue expanding access to mental health and substance use treatment and recovery services.
• K-12: An additional $1.3 billion for K-12 schools to support increased costs for maintenance, supplies, technology and educator compensation.
• Childcare and early learning: $510 million to improve provider subsidy rates for Working Connections Child Care. $48 million for increased ECEAP rates school and right-sizing of the program to reduce unused part day slots and create 750 school day slots. Expanded entitlement for ECEAP is delayed.
• Public safety: $3.5 million to maintain the recent expansion of training for local corrections officers. $7 million for 60 additional state law enforcement officers, and $13 million for deployment of speed cameras to reduce work zone injuries and deaths. $33 million to open a new juvenile rehabilitation center.
• College and career training: $6 million to continue full funding for Career Connect Washington and $182 million to maintain the nation’s most generous financial aid program, Washington College Grant.
• Clean energy transition: $982 million of funding from the Climate Commitment Act continues popular and emission-reducing programs such as Washington’s EV rebate program, cost-saving weatherization improvements, electric school buses, hybrid-electric ferries, and free transit for youth.
• Retention and recruitment: Most Washington state employees will receive small cost-of-living adjustments of 3% in 2025 and 2% in 2026. The consumer price index — a measure of inflation — increased 3.0% in the Seattle area over the past year.
• Transportation: Sustained funding for new ferries and improved ferry service, and increased funding for fish barrier removal projects to meet the state’s legal responsibilities. Climate Commitment Act funding allows for additional bike and pedestrian projects and more transit services across the state. A funding gap for highway projects will require legislators to explore options to adjust delivery timelines or funding.

“Rolling back our work in areas like mental health, housing and education is not something we can afford, particularly at the moment we’re finally seeing the results of years of work and investments,” Inslee said. “This is a budget that keeps us moving forward, puts working families first, and continues creating a fairer tax system.”

• Read the full story on Gov. Jay Inslee's Medium
• Read full budget and policy highlights