wa-law.org > bill > 2025-26 > HB 2055 > Original Bill
1.
The state revenue limit for any fiscal year is the previous fiscal year's state revenue limit increased by a percentage rate that equals the fiscal growth factor.
For purposes of computing the state revenue limit for the fiscal year beginning July 1, 2026, the phrase "the previous fiscal year's state revenue limit" means the total state revenues deposited into the state general fund and related funds, not including federal funds, for the fiscal year beginning July 1, 2025, plus the fiscal growth factor.
A state revenue limit committee is established for the purpose of determining and adjusting the state revenue limit as provided in this chapter. The members of the state revenue 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 finance, or their successor committees. All actions of the state revenue limit committee taken pursuant to this chapter require an affirmative vote of at least four members.
Each November, the state revenue limit committee shall adjust the revenue limit for the preceding fiscal year based on actual revenue collections and known changes in the fiscal growth factor and then project a revenue limit for the next two fiscal years. If, by November 30th, the state revenue limit committee has not adopted the revenue limit adjustment and projected revenue limit as provided in subsection (3) of this section, the state treasurer shall adjust or project the revenue 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 consumer price index for all urban consumers for the Seattle-Tacoma-Bellevue area, or successor index, 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.
If the cost of any state program or function is shifted from the state general fund or related funds on or after January 1, 2025, 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 revenue limit committee, acting pursuant to RCW 43.135.025, shall lower the state revenue 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, 2025, 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.
The budget stabilization account is governed by the provisions in Article VII, section 12 of the state Constitution and this section.
By June 30th of each fiscal year, the state treasurer shall transfer an amount equal to one percent of the general state revenues for that fiscal year to the budget stabilization account.
By June 30th of each fiscal year, the state treasurer must compare revenue collections for that fiscal year for funds subject to the state revenue limit contained in RCW 43.135.025. If revenue collections exceed the state revenue limit for that year, the state treasurer must, by June 30th of that year, transfer from the state general fund to the budget stabilization account the amount by which actual collections exceeded the revenue limit in that year. The amount to be transferred must be reduced by any amounts being transferred from the state general fund to the budget stabilization account for that year under the extraordinary revenue provisions contained in Article VII, section 12 of the state Constitution.
For the purposes of Article VII, section 12 of the state Constitution, this section, and RCW 82.33.050, the state employment growth forecast shall be based on the total nonfarm payroll employment data series.