Sen. Phil Fortunato proposes zero-based budgeting reform during operating budget debate

OLYMPIA — During debate on the Senate’s proposed supplemental operating budget, Sen. Phil Fortunato, R–Auburn, introduced an amendment to require a phased-in zero-based budgeting review of state spending. The amendment was not adopted.

The Senate proposed operating budget, Senate Bill 5998, passed on a party-line vote of 30–19, with all Democrats voting yes and all Republicans voting no.

Fortunato’s amendment (S AMD 778) would have required the Office of Financial Management to implement zero-based budgeting for agencies whose expenditures total one-fourth of state appropriations each biennium. Over an eight-year period, the phased approach would ensure the entire state budget is reviewed from the ground up.

“Zero-based budgeting simply means you start from zero instead of where you were last year,” Fortunato said. “Right now, the typical approach is: How much did you spend last year? How much do you want this year? Then we layer on automatic increases. We rarely stop and ask whether every program still justifies its existence.

“It’s too big to do the entire budget at once, but reviewing 25 percent each biennium is achievable. Within eight years, every agency would be required to justify its spending from scratch. That gives us the opportunity to go line by line and see exactly what agencies are doing with taxpayer dollars.”

Under Fortunato’s proposal, agencies selected for review would be required to justify their expenditures from zero rather than receiving automatic percentage increases based on prior-year spending. The goal, Fortunato said, is to identify outdated, duplicative, or ineffective “sleeper” programs that continue receiving funding without meaningful evaluation.

Fortunato also sponsored another amendment (S AMD 779) that would opt Washington into the federal Education Freedom Tax Credit program. This program would allow families to claim a federal tax credit of up to $3,400 (jointly) for contributions to an education grant program that supports tuition, fees, academic tutoring, and classroom supplies.

For Washington families to participate, the Governor must formally notify the federal government of the state’s intent to opt in — a step that governors in both red and blue states have already taken. Governor Ferguson has chosen not to submit that request.

However, the federal program provides an alternative method, allowing a state to designate another entity or agency to request participation. Amendment 779 would have designated the Department of Revenue to notify the appropriate federal authority of Washington’s participation and ensure compliance with program requirements.

Unfortunately, the amendment was not adopted, leaving Washington families unable to access this federal education opportunity.

“The state budget continues to grow and relies on significant tax increases; taxpayers deserve more than automatic spending increases,” Fortunato continued. “They deserve accountability and transparency in how their money is spent. I will continue fighting to protect your tax dollars.”

A recently recorded video from Fortunato further explains the zero-based budgeting amendment and his concerns with the current budgeting process. The video is available on his official legislative website and social media platforms.

The 2026 session is scheduled to conclude on March 12.

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