Former officials and business leaders urge budget discipline and policy stability to preserve Washington’s competitiveness

Chris Johnson, president of the Association of Washington Business, convened the Economic Future Solutions Summit to press leaders for “real, actionable ideas” to sustain Washington’s economy.

Speakers at the summit focused on the state’s fiscal trajectory and the risks of relying on unstable revenue and short‑term fixes. Moderator Jeff (Association moderator) and panelists noted the current biennial budget of about $80 billion — described at the event as an 11% increase over the last biennium — and a roughly $4.9 billion gap between projected spending and tax revenues.

Former Governor Gary Locke and former Office of Financial Management director Marty Brown described two accountability tools from past administrations. Locke said the Priorities of Government (POG) framework forced leaders to rank programs and decide what to fund, cut or expand. “You have to establish priorities and it’s been my belief that instead of doing everything in a mediocre fashion, let’s try to set priorities and do a few things really, really well,” Locke said. Marty Brown said GMAP’s agency‑level reviews helped expose problems and accelerate improvement, citing the Traffic Safety Commission’s Target 0 effort to reduce traffic fatalities as an example of GMAP‑driven focus.

Panelists singled out reliance on volatile revenue sources and optimistic forecasts as particular dangers. Steve Mullen, recently retired from the Washington Roundtable, warned that policy churn and frequent tax changes create “chaos and uncertainty” that deter investment. One panelist summarized the arithmetic presented at the session: the biennial budget, recent spending growth and certain revenue‑booking choices leave the state exposed to relatively small revenue swings.

Joe Fain, president and CEO of the Bellevue Chamber, put a blunt prescription simply: “Don’t spend money you don’t have,” he said. Other participants urged legislators to be candid about revenues and liabilities when preparing the next budget, to book recurring costs (such as settlement and bargaining obligations) and to avoid committing one‑time federal or other temporary funds to ongoing programs.

Speakers also raised the capital gains tax as an unstable revenue stream, noting that a small number of high‑income tax returns can drive large swings in receipts. One participant said the state has effectively “built our entire budget on 9,000 tax returns,” a formulation used at the panel to highlight concentration risk.

Panelists recommended returning to an outcomes‑based conversation about spending: adopt program evaluation frameworks, allow ineffective programs to sunset, and prioritize investments that yield demonstrable public value. They also urged more honest forecasting and stronger rainy‑day reserves, noting outside research that the state’s reserves are small relative to operating costs.

The summit closed the discussion with an appeal for political leaders and business executives to work together on stability and accountability so Washington can maintain its competitive advantages.