OLYMPIA — Washington lawmakers released their capital budget proposals Monday, heralding their work as a true bipartisan effort and a “bright spot” amid the state’s budget crunch.
The House and Senate propose spending $7.6 billion and $7.3 billion, respectively, in budgets both chambers say prioritizes the “basic needs” of Washingtonians by funding essential construction and infrastructure projects over the next two years.
The proposals set aside $1 billion for education, more than $720 million for housing, $2 billion for behavioral health and $2 billion for natural resources. The Senate plan relies on $391 million from Climate Commitment Act dollars, and the House version $299 million.
Lawmakers will negotiate a final capital budget before the legislative session ends April 27. Before adjourning, lawmakers must also pass an operating budget, which is expected to be a fierce debate with increased contrast between how House and Senate Democrats propose to spend and save over the next two years.
Sen. Yasmin Trudeau, D-Tacoma, vice chair of the Senate Ways and Means Committee, said in a news release Monday that she had a few “bedrock principles” in mind as Senate leaders came to decisions on the capital proposal.
“I wanted this budget to meet the basic needs of Washingtonians in all parts of our great state and to be responsive to our state’s most essential infrastructure needs,” said Trudeau. “I think this budget accomplishes that mission.”
Republicans in the House agreed on the bipartisan crafting the budget.
“This budget is the product of months of careful collaboration and a strong focus on people,” said Rep. Mike Steele, R-Chelan, ranking Republican on the House Capital Budget Committee. “At a time when other state budgets are facing pressure and shortfalls, the capital budget stands out as a bright spot. It supports our shared bipartisan priorities … and does not rely heavily on general fund dollars.”
The Senate capital proposal includes $4.5 billion in new debt limit bond spending and the House, $4.6 billion in general obligation bonds. Bond sales primarily fund the capital budget, unlike the operating budget that is largely dependent on general fund state revenue. The capital budget pays for the acquisition and maintenance of state buildings, public schools, higher education facilities, public lands, parks and other assets.
Here are some of the key investments in the House and Senate capital budgets:
Education
Both capital budgets propose major investments in K-12 capital construction projects.
Under the Senate proposal, K-12 education projects would see just over $1 billion, including approximately $563 million for the School Construction Assistance Program, to help districts undertaking a major new construction or modernization projects.
The proposal also includes over $202 million for modernization for small school districts and at tribal compact schools, and $143 million for the School Seismic Safety Safety Grant Program to retrofit or relocate schools in high seismic areas or tsunami zones.
The House proposal includes $1.1 billion for K-12 projects. That money includes $563 million for the school construction program, about $250 million for building modernization in small and tribal compact schools, and $151 for the seismic safety program.
Housing and homelessness
Major spending on housing and homelessness are also proposed by the House and Senate.
In the Senate, lawmakers are proposing just over $770 million for housing and homelessness projects, including $600 million for the Housing Trust Fund, the state’s main funding source for affordable housing.
A state report last year projected Washington will need more than 1 million new homes for varying income levels in the next two decades to meet residents’ needs. State lawmakers have poured hundreds of millions of dollars into the Housing Trust Fund in past biennium capital budgets, but every year more affordable housing projects apply for money beyond the funds available.
Senate lawmakers are also proposing nearly $10 million for veteran’s facilities and more than $160 million for other housing programs, including affordable housing units in transit-oriented development projects and homeownership opportunity expansion.
House lawmakers are proposing just over $723 million in spending for housing and homelessness, including $100 million for permanent supportive housing projects. They’re also proposing $100 million for utility connections in affordable housing, $80 million for first-time, low-income homebuyer assistance, and $10 million for youth shelters and housing.
Behavioral health
Both proposals earmark the bulk of behavioral health money — $282 million — for the ongoing revamping of Western State Hospital, including the forensic hospital building.
The new $947 million facility, a key piece of former Gov. Jay Inslee’s plan to revive the state’s mental health system, is slated to open in 2028 with 350 beds.
The Senate’s $455 million plan includes $131 million for behavioral health capacity grants and $33 million toward obligations under the state’s “Trueblood” court settlement. Washington was fined $100 million in 2023 for failing to provide adequate mental health services to individuals with severe mental illnesses in state jails.
The $472 million plan from House lawmakers includes $133 million for capacity grants and $22 million for Maple Lane, near Centralia, to continue adding space in the mental health system for patients involuntarily sent to treatment through the civil court system.
Natural resources
A big portion of both budgets are set aside for natural resources in the state.
Under the Senate proposal, about $2.3 billion is set aside for projects, with nearly $892 million going toward toxic cleanup and prevention. Other projects that would see funding include nearly $211 million for salmon recovery, about $205 million for outdoor recreation and conservation projects, and approximately $141 million for habitat restoration.
The Senate capital budget also includes a proposal to pay for fish culvert replacements through a new account, shifting the funding from the transportation budget.
House lawmakers are proposing about $2.2 billion for projects such as $120 million for the Washington Wildlife and Recreation Program. Additionally, the proposal includes $70 million for the Chehalis Basin Strategy and nearly $60 million for the Floodplains by Design program, which “works to reduce flood risk, restore habitat, improve water quality, support agriculture and enhance recreation along Washington’s rivers.” Other funding includes $49 million for the Yakima River Basin Water Supply Program, and $36 million for Columbia River water supply development.
