Washington state spending has increased more than 140 percent over the last 12 years, considerably outpacing population and inflation growth. The state now collects significantly more money but is still projecting multi-billion-dollar deficits through the end of the decade.
In spite of increasing annual tax revenue, the state's deficit continues to grow because spending has increased faster than revenue in nearly every budget cycle since 2019, and there is no longer a structural mechanism in place that requires the legislature to stop.
That must change before Washingtonians and the Legislature can have a serious discussion about tax reform.
For decades, Washington state had a spending limit and according to the Washington Department of Revenue, the spending limit worked. Prior to the spending limit, Washington ranked 9th in the country in per capita tax burden in 1990. By 2000 (after the limit was made law), that rank had fallen to 32nd. Washington went from being one of the heaviest taxed states in the country to solidly below average in a single decade, while still funding schools, roads, and public safety. Businesses had a different calculus about locating or expanding in Washington than they did 10 years earlier, and residents kept more of their income.
Flash forward to today: the voter-approved spending limit was removed, spending has skyrocketed and student test scores are plummeting, roads and bridge conditions are some of the worst in the country, longstanding iconic business are leaving, and homelessness is at an all-time high.
Return Washington to responsible spending based with a binding spending limit. A spending limit forces prioritization as to where the state should spend its money and whether we are getting value for the money being spent.
Will you add your name to Washington Policy Center's call for a new state spending limit?