Finance staff warns of slim cash cushion and possible negative balance in FY28 if bond spending continues

Public Works Board finance staff reported a cautious cash outlook July 10 after the June 2026 revenue forecast. Finance staff said that while the updated forecast narrowed some previously projected reductions, the public works assistance account shows a slim end‑of‑biennium cushion of about $8.5 million under current assumptions.

The presentation noted large near-term transfers and bond-authorized spending—including a $288 million transfer to the general fund this fiscal year and another $375 million scheduled for the end of next fiscal year—that compress the account’s cash flow. Finance staff said that, based on current bond-authority and spending plans, the model could show a negative balance of up to roughly $17 million in April–May of fiscal year 2028 if the board proceeds with allocating the full $202 million construction cycle in October without other adjustments.

Finance staff and several board members discussed options, including ‘dynamic approvals’ or pacing awards to match cash-flow capacity and coordinating with the Move Ahead Washington transfer schedule. Member Gary Rowe and others urged additional analysis and member training to help newer board members understand the predictive model and timing implications.

Staff said the finance and data committee will continue to refine modeling assumptions (including burn-rate assumptions for multi-year projects) and will evaluate how large decision-package requests (for example, a possible $500 million biennial ask) would be phased across fiscal years to avoid destabilizing cash flows.

Next steps: finance staff to continue committee-level work, present refined scenarios and recommend options for October award decisions so the board can avoid negative cash events while meeting urgent project needs.