Washington state is on course to enter deficit spending by 2028, despite hitting taxpayers with the largest combined tax increase in its history. An investigation by The Center Square reveals that state spending has more than doubled over the past decade, vastly outpacing inflation and population growth.
In 2013-15, the state’s biennial budget totaled roughly $80 billion. By 2025-27, that figure will exceed $173 billion—a 116% increase. In contrast, U.S. inflation since 2015 has risen only 35.63%, and Washington’s population has grown by just 13.8%, according to the U.S. Bureau of Labor Statistics and the state’s Office of Financial Management.
State Rep. Travis Couture, R-Allyn, a member of the Washington State Economic and Revenue Forecast Council, criticized the uncontrolled growth. “At the end of the day, you have to ask yourself, ‘What did we get for that new spending?’ We don’t see the results,” he said.
Just five budget areas alone have grown by $77.2 billion since 2013:
- Department of Social and Health Services: from $9B to $25.4B (182% increase)
- Long Term Care: from $3.8B to $12.9B (239% increase)
- General Apportionment: from $11.4B to $22.6B (98% increase)
- Public Schools: from $17.7B to $37.4B (111% increase)
- Health Care Authority: from $16.4B to $38B (132% increase)
Despite a $9 billion tax hike passed in the 2025 legislative session, budget projections show a $444 million deficit looming in 2028. Rep. Ed Orcutt, R-Kalama, warns that spending must be curtailed. “We have time to make spending adjustments to bring the outlook into balance—not to dip into emergency reserves,” he wrote.
Among the newly enacted taxes and fees are:
- A 25% hike in business taxes
- Expanded retail sales tax to more services
- A 50% increase in liquor fees
- A 2.9% capital gains surtax for earnings over $1M
- Property tax cap raised from 1% to 3%
- Higher taxes on rentals, self-storage, hunting licenses, tobacco, and concert tickets
Washington’s increased education spending stems partly from the 2012 McCleary court decision, which required the state to fully fund K-12 education. Yet the state now ranks 27th in education nationwide—down from 20th a decade ago.
Critics argue that the budget is being written with unrealistic expectations. “They’ve played all the games; they’ve done all the fund shifts,” said Jason Mercier of the Mountain States Policy Center. “Now it’s time to cut spending.”
