Ways & Means hears OFM briefing on Governor Inslee’s proposed 2025 operating budget

Nona Snell, budget director at the Office of Financial Management, told the Senate Ways & Means Committee on Jan. 14 that Governor Jay Inslee’s proposed 2025‑27 operating budget responds to slowing revenue growth, rising caseloads and higher costs for state services.

Snell said the proposal preserves existing services where possible, ends programs deemed no longer needed, delays some program starts and uses one‑time transfers. She summarized several large moves that shape the revenue and appropriation outlook: a transfer earlier this decade of $1.6 billion from the Budget Stabilization Account into the general fund and an offsetting return in later years; combining portions of the Plan 1 and Plan 2 law enforcement and firefighter pension plans and transferring $1.0 billion of a plan surplus into the general fund; and a package of tax changes that the proposal estimates will raise substantial revenue in later years.

On tax changes, Snell said the governor proposes a 1% wealth…