1.
During any fiscal year, the state shall not expend from the general fund and related funds in excess of the state expenditure limit established under this chapter.
The state treasurer shall not issue or redeem any check, warrant, or voucher that will result in a state general fund or related fund expenditure for any fiscal year in excess of the state expenditure limit established under this chapter. A violation of this subsection constitutes a violation of RCW 43.88.290 and shall subject the state treasurer to the penalties provided in RCW 43.88.300.
The state expenditure limit for any fiscal year is the previous fiscal year's state expenditure limit increased by a percentage rate that equals the fiscal growth factor.
For purposes of computing the state expenditure limit for the fiscal year beginning July 1, 2023, the phrase "the previous fiscal year's state expenditure limit" means the total state expenditures from the state general fund and related funds, not including federal funds, for the fiscal year beginning July 1, 2021, plus the fiscal growth factor.
A state expenditure limit committee is established for the purpose of determining and adjusting the state expenditure limit as provided in this chapter. The members of the state expenditure limit committee are the director of financial management, the state treasurer or treasurer's designee, and the chairs and ranking minority members of the senate committee on ways and means and the house of representatives committee on appropriations, or their successor committees. All actions of the state expenditure limit committee taken pursuant to this chapter require an affirmative vote of at least four members.
Each November, the state expenditure limit committee shall adjust the expenditure limit for the preceding fiscal year based on actual expenditures and known changes in the fiscal growth factor and then project an expenditure limit for the next two fiscal years. If, by November 30th, the state expenditure limit committee has not adopted the expenditure limit adjustment and projected expenditure limit as provided in subsection (5) of this section, the state treasurer shall adjust or project the expenditure limit, as necessary.
The definitions in this subsection apply throughout this chapter unless the context clearly requires otherwise.
"Fiscal growth factor" means the average of the sum of inflation and population change for each of the prior three fiscal years.
"Inflation" means the percentage change in the implicit price deflator for the United States for each fiscal year as published by the federal bureau of labor statistics.
"Population change" means the percentage change in state population for each fiscal year as reported by the office of financial management.
"Related funds" means the Washington opportunity pathways account, the workforce education investment account, the fair start for kids account, and the education legacy trust account.
For any bill introduced in either the house of representatives or the senate that raises taxes as defined by RCW 43.135.034 or increases fees, the office of financial management must expeditiously determine its cost to the taxpayers in its first ten years of imposition, must promptly and without delay report the results of its analysis by public press release via email to each member of the house of representatives, each member of the senate, the news media, and the public, and must post and maintain these releases on its website. Any ten-year cost projection must include a year-by-year breakdown. For any bill containing more than one revenue source, a ten-year cost projection for each revenue source will be included along with the bill's total ten-year cost projection. The press release shall include the names of the legislators, and their contact information, who are sponsors and cosponsors of the bill so they can provide information to, and answer questions from, the public.
Any time any legislative committee schedules a public hearing on a bill that raises taxes as defined by RCW 43.135.034 or increases fees, the office of financial management must promptly and without delay report the results of its most up-to-date analysis of the bill required by subsection (1) of this section and the date, time, and location of the hearing by public press release via email to each member of the house of representatives, each member of the senate, the news media, and the public, and must post and maintain these releases on its website. The press release required by this subsection must include all the information required by subsection (1) of this section and the names of the legislators, and their contact information, who are members of the legislative committee conducting the hearing so they can provide information to, and answer questions from, the public.
Each time a bill that raises taxes as defined by RCW 43.135.034 or increases fees is approved by any legislative committee or by at least a simple majority in either the house of representatives or the senate, the office of financial management must expeditiously reexamine and redetermine its ten-year cost projection due to amendment or other changes during the legislative process, must promptly and without delay report the results of its most up-to-date analysis by public press release via email to each member of the house of representatives, each member of the senate, the news media, and the public, and must post and maintain these releases on its website. Any ten-year cost projection must include a year-by-year breakdown. For any bill containing more than one revenue source, a ten-year cost projection for each revenue source will be included along with the bill's total ten-year cost projection. The press release shall include the names of the legislators, and their contact information, and how they voted on the bill so they can provide information to, and answer questions from, the public.
For the purposes of this section, "names of legislators, and their contact information" includes each legislator's position (senator or representative), first name, last name, party affiliation (for example, Democrat or Republican), city or town they live in, office phone number, and office email address.
For the purposes of this section, "news media" means any member of the press or media organization, including newspapers, radio, and television, that signs up with the office of financial management to receive the public press releases by email.
For the purposes of this section, "the public" means any person, group, or organization that signs up with the office of financial management to receive the public press releases by email.
[ 2013 c 1 § 5 (Initiative Measure No. 1185, approved November 6, 2012); 2016 c 1 § 4 (Initiative Measure No. 1366, approved November 3, 2015); 2008 c 1 § 2 (Initiative Measure No. 960, approved November 6, 2007); ]
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Any action or combination of actions by the legislature that raises taxes may be taken only if approved by a two-thirds vote in both the house of representatives and the senate. Pursuant to the referendum power set forth in Article II, section 1(b) of the state Constitution, tax increases may be referred to the voters for their approval or rejection at an election.
For the purposes of this chapter, "raises taxes" means any action or combination of actions by the state legislature that increases state tax revenue deposited in any fund, budget, or account, regardless of whether the revenues are deposited into the general fund.
The state or any political subdivision of the state may not impose any tax on intangible property listed in RCW 84.36.070 as that statute exists on January 1, 1993.
[ 2020 c 218 § 4; 2015 3rd sp.s. c 44 § 421; 2013 c 1 § 2 (Initiative Measure No. 1185, approved November 6, 2012); 2011 c 1 § 2 (Initiative Measure No. 1053, approved November 2, 2010); ]
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After July 1, 2011, if legislative action raising taxes as defined by RCW 43.135.034 is blocked from a public vote or is not referred to the people by a referendum petition found to be sufficient under RCW 29A.72.250, a measure for an advisory vote of the people is required and shall be placed on the next general election ballot under this chapter.
If legislative action raising taxes enacted after July 1, 2011, involves more than one revenue source, each tax being increased shall be subject to a separate measure for an advisory vote of the people under the requirements of this chapter.
No later than the first of August, the attorney general will send written notice to the secretary of state of any tax increase that is subject to an advisory vote of the people, under the provisions and exceptions provided by this chapter. Within five days of receiving such written notice from the attorney general, the secretary of state will assign a serial number for a measure for an advisory vote of the people and transmit one copy of the measure bearing its serial number to the attorney general as required by RCW 29A.72.040, for any tax increase identified by the attorney general as needing an advisory vote of the people for that year's general election ballot. Saturdays, Sundays, and legal holidays are not counted in calculating the time limits in this subsection.
For the purposes of this section, "blocked from a public vote" includes adding an emergency clause to a bill increasing taxes, bonding or contractually obligating taxes, or otherwise preventing a referendum on a bill increasing taxes.
If legislative action raising taxes is referred to the people by the legislature or is included in an initiative to the people found to be sufficient under RCW 29A.72.250, then the tax increase is exempt from an advisory vote of the people under this chapter.
[ 2013 c 1 § 6 (Initiative Measure No. 1185, approved November 6, 2012); 2016 c 1 § 5 (Initiative Measure No. 1366, approved November 3, 2015); 2010 c 4 § 3; 2008 c 1 § 6 (Initiative Measure No. 960, approved November 6, 2007); ]
The education construction fund is hereby created in the state treasury.
Funds may be appropriated from the education construction fund exclusively for common school construction or higher education construction.
Funds may be appropriated for any other purpose only if approved by a two-thirds vote of each house of the legislature and if approved by a vote of the people at the next general election. An appropriation approved by the people under this subsection must result in an adjustment to the state expenditure limit only for the fiscal period for which the appropriation is made and does not affect any subsequent fiscal period.
Nothwithstanding subsection (2) of this section, during the 2015-2017 fiscal biennium, the fund may be used for maintenance and operations at community and technical colleges.
[ 2016 sp.s. c 36 § 934; 2013 2nd sp.s. c 9 § 5; 2012 2nd sp.s. c 5 § 1; 2012 1st sp.s. c 10 § 5; 2011 1st sp.s. c 50 § 950; 2010 1st sp.s. c 27 § 5; prior: 2009 c 564 § 939; 2009 c 479 § 37; prior: 2007 c 520 § 6035; 2007 c 484 § 5; prior: 2005 c 518 § 931; 2005 c 488 § 920; 2005 c 314 § 401; 2005 c 72 § 6; 2003 1st sp.s. c 25 § 920; prior: (2003 1st sp.s. c 26 § 919; 2003 1st sp.s. c 26 § 918; 2002 c 33 § 2; prior: 2001 c 3 § 9 (Initiative Measure No. 728, approved November 7, 2000); 2000 2nd sp.s. c 5 § 1; 2000 2nd sp.s. c 2 § 3; 1994 c 2 § 3 (Initiative Measure No. 601, approved November 2, 1993); ]
A fee may only be imposed or increased in any fiscal year if approved with a simple majority vote in both the house of representatives and the senate and must be subject to the accountability procedures required by RCW 43.135.031.
This section does not apply to an assessment made by an agricultural commodity commission or board created by state statute or created under a marketing agreement or order under chapter 15.65 or 15.66 RCW, or to the forest products commission, if the assessment is approved by referendum in accordance with the provisions of the statutes creating the commission or board or chapter 15.65 or 15.66 RCW for approving such assessments.
[ 2013 c 1 § 4 (Initiative Measure No. 1185, approved November 6, 2012); 2011 c 1 § 5 (Initiative Measure No. 1053, approved November 2, 2010); 2008 c 1 § 14 (Initiative Measure No. 960, approved November 6, 2007); 2001 c 314 § 19; 1997 c 303 § 2; 1994 c 2 § 8 (Initiative Measure No. 601, approved November 2, 1993); ]
After July 1, 1995, the legislature shall not impose responsibility for new programs or increased levels of service under existing programs on any political subdivision of the state unless the subdivision is fully reimbursed by the state for the costs of the new programs or increases in service levels. Reimbursement by the state may be made by: (a) A specific appropriation; or (b) increases in state distributions of revenue to political subdivisions occurring after January 1, 1998.
If by order of any court, or legislative enactment, the costs of a federal or local government program are transferred to or from the state, the otherwise applicable state expenditure limit shall be increased or decreased, as the case may be, by the dollar amount of the costs of the program.
The legislature, in consultation with the office of financial management or its successor agency, shall determine the costs of any new programs or increased levels of service under existing programs imposed on any political subdivision or transferred to or from the state.
Subsection (1) of this section does not apply to the costs incurred for voting devices or machines under RCW 29A.12.150.
[ 2015 c 53 § 71; 1998 c 321 § 15 (Referendum Bill No. 49, approved November 3, 1998); 1994 c 2 § 5 (Initiative Measure No. 601, approved November 2, 1993); 1990 2nd ex.s. c 1 § 601; 1990 c 184 § 2; 1980 c 1 § 6 (Initiative Measure No. 62, approved November 6, 1979); ]
This chapter may be known and cited as the taxpayer protection act.
[ 1994 c 2 § 10 (Initiative Measure No. 601, approved November 2, 1993); ]
** If the cost of any state program or function is shifted from the state general fund or related funds on or after January 1, 2021, to another source of funding, or if moneys are transferred from the state general fund or related funds to another fund or account, the state expenditure limit committee, acting pursuant to RCW 43.135.025, shall lower the state expenditure limit to reflect the shift. For the purposes of this section, a transfer of money from the state general fund or related funds to another fund or account includes any state legislative action taken after July 1, 2021, that has the effect of reducing revenues from a particular source, where such revenues would otherwise be deposited into the state general fund or related funds, while increasing the revenues from that particular source to another state or local government account.
[ 2021 c XXX § 2; ]**