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Agency Recommendation Summaries

Employment Security Department

  Average Annual FTEs Near General Fund State Other Funds Total Funds
  (Dollars in Thousands)
Current Budget 2,372.2 44 939,036 939,080
2025-27 Maintenance Level 2,373.5 44 906,190 906,234
Difference from 2025-27 Original 1.3 0 (32,846) (32,846)
% Change from 2025-27 Original 0.05% 0.0% (3.5%) (3.5%)

2026 Policy Other Changes

Economic Security for All 0.0 0 (2,000) (2,000)
Federal Funding Shortfall 0.0 0 19,030 19,030
PFML Contribution Modification 0.10 0 1,160 1,160
WorkSource Integrated Technology 2.1 0 2,967 2,967
2026 Policy Other Changes Total 2.2 0 21,157 21,157

2026 Policy Central Services Changes

Administrative Hearings 0.0 0 336 336
Audit Services 0.0 0 10 10
DES Central Services 0.0 0 139 139
GOV Central Services 0.0 0 88 88
Legal Services 0.0 0 107 107
OFM Central Services 0.0 0 3,927 3,927
Self-Insurance Liability Premium 0.0 0 1,777 1,777
WTS Central Services 0.0 0 295 295
2026 Policy Central Services Changes Total 0.0 0 6,679 6,679
Total Policy Changes 2.2 0 27,836 27,836
2026 Policy Level 2,375.7 44 934,026 934,070
Difference from 2025-27 Original 3.5 0 (5,010) (5,010)
% Change from 2025-27 Original 0.15% 0.0% (0.5%) (0.5%)

Policy Changes

Administrative Hearings

Adjustments are made for each agency's anticipated cost of administrative hearings from the Office of Administrative Hearings. (Family & Medical Leave Insur Acct - State, Long-Term Servs & Sup Trust Account - State, Unemployment Compensation Admin - Federal)

Audit Services

Adjustments are made for each agency's anticipated cost of audits performed by the Washington State Auditor. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, other funds)

DES Central Services

Adjustments are made to reflect each agency's anticipated share of charges from the Department of Enterprise Services for Capitol Campus costs; real estate, risk management, and small agency services; the Perry Street and Capitol Campus child care centers; enterprise applications, and other items. (Family & Medical Leave Insur Acct - State, General Fund - Federal, Unemployment Compensation Admin - Federal, other funds)

Economic Security for All

Effective July 1, 2026, one-time funding is provided to serve additional participants through the Economic Services for All program. In addition, a portion of the Employment Services Administrative Account-State funding is replaced with Workforce Innovation Opportunity Act Governor Reserve funds. (Employment Services Administrative - State)

Federal Funding Shortfall

Expenditure authority is provided for the remaining federal Reed Act funds in fiscal year 2026 and other funds to bridge the gap in federal funding revenue for the administration of the Unemployment Insurance (UI) program. (Administrative Contingency Account - State, Employment Services Administrative - State, Unemployment Compensation Admin - Federal)

GOV Central Services

Adjustments are made to reflect each agency's anticipated share of charges from the Office of the Governor for the Office of Equity. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, other funds)

Legal Services

Adjustments are made for each agency's anticipated cost of legal services provided by the Office of the Attorney General. Funding provided in the central service model is not all inclusive, as legal services expenditures are based on consumption. (Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal)

OFM Central Services

Adjustments are made to reflect each agency's anticipated share of charges from the Office of Financial Management for existing statewide applications, the One Washington program, and other central services. (Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, Administrative Contingency Account - State, other funds)

PFML Contribution Modification

Funding is provided for the IT enhancements and rule changes necessary to modify the Paid Family and Medical Leave employer premium contribution deduction. (Family & Medical Leave Insur Acct - State)

Self-Insurance Liability Premium

Adjustments are made to reflect each agency's share of actuarially projected costs of the self-insurance liability premium. (Family & Medical Leave Insur Acct - State, General Fund - Federal, Unemployment Compensation Admin - Federal, other funds)

WTS Central Services

Adjustments are made to reflect each agency's anticipated share of charges from Washington Technology Solutions for the Office of Cybersecurity, the state network, enterprise services, small agency IT services, enterprise architecture and data management, Microsoft 365 licenses, and other items. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, other funds)

WorkSource Integrated Technology

Additional funding is provided to complete replacement of the WorkSource Integrated Technology platform that supports statewide workforce administration. The funding includes the continuation of staffing, vendor costs, and reimbursement for the Local Workforce Development Board's participation in the project. The project completion date has been extended to September 30, 2026. (Employment Services Administrative - State)