The bill changes how the state's annual "state revenue limit" is calculated and adds procedures for adjusting and enforcing that limit. It amends existing law (RCW 43.135.025 and RCW 43.79.495 and adds a new section to chapter 43.135 RCW) to require the state revenue limit for any fiscal year equal the prior fiscal year's state revenue limit increased by a percentage called the fiscal growth factor. The fiscal growth factor is defined as the average, over the prior three fiscal years, of the sum of inflation and state population change; inflation is measured by the Seattle-Tacoma-Bellevue CPI‑U (or successor index) from the federal Bureau of Labor Statistics and population change is the Office of Financial Management's state population change. For the fiscal year beginning July 1, 2026, the bill sets a special computation referencing total state revenues deposited in the general fund and listed related funds for the fiscal year beginning July 1, 2025. The bill creates a state revenue limit committee to determine and adjust the revenue limit, specifies the committee membership (including the state treasurer and director of financial management and legislative fiscal leaders), requires committee actions to be taken by an affirmative vote of at least four members, and requires an annual November adjustment of the prior fiscal year and projections for the next two fiscal years; if the committee has not acted by November 30, the state treasurer must make the adjustments or projections. It adds a new requirement that the committee lower the state revenue limit if costs of any state program or function are shifted away from the general fund or listed related funds on or after January 1, 2025, or if moneys are transferred out of those funds; for this rule a "transfer" includes legislative actions after July 1, 2025, that reduce revenues to the general fund or related funds while increasing revenues to another government account. The bill also amends budget stabilization account procedures: by June 30 each fiscal year the state treasurer must transfer an amount equal to 1% of general state revenues to the budget stabilization account, and must compare collections for funds subject to the state revenue limit to the limit and transfer any excess from the general fund to the budget stabilization account (reduced by any constitutionally required extraordinary revenue transfers). The bill references Article VII, section 12 of the Washington Constitution and RCW 82.33.050 for related rules, cites the agencies affected, and was read for the first time March 25, 2025 and referred to Appropriations. The provided text includes Sections 1–3 only; other sections, fiscal notes, effective dates, or additional provisions may be missing from the extracted facts.

If enacted, the measure would tie how much state revenue can grow each year to a three‑year average of inflation plus population change, create a five‑member committee (with the treasurer and OFM director) to set and adjust that revenue limit each November, and require the state treasurer to move money into the budget stabilization account: at least 1% of general state revenues annually and any collections above the limit (subject to constitutional exceptions). Practically, this will likely constrain how much the state can spend from the general fund and four named education‑related accounts, increase the chance that excess revenues are sequestered into the rainy‑day fund rather than used for new or expanded programs, and put new calculation and transfer responsibilities on the state treasurer and the revenue limit committee; legislative actions that shift costs or redirect revenues after mid‑2025 can reduce the allowable revenue ceiling and thus limit future budget flexibility. Important details are missing or unclear in the provided text — for example, the special rule for computing the 2026 limit (how the 2025 revenues and the growth factor are combined) and some subsection cross‑references — so the exact fiscal impact and timing of transfers and limit reductions could vary once the full bill text and any implementing guidance are known.