OLYMPIA, Wash. — Senate Democratic lawmakers in the Washington Legislature released a $78.5 billion state spending proposal Monday that includes increased funding for K-12 special education for the next two years and raises for state workers.

The budget, which relies on the state's rainy day fund and $17 billion in revenue over the next four years from a suite of new tax proposals, is poised to increase spending by $5.4 billion from the current two-year budget. The proposal increases spending by about $3.1 billion for the 2027-29 biennium and leaves about $7.6 billion in total reserves.

A clearer picture of a potential new operating budget emerges this week — House Democrats released their budget proposal too Monday afternoon — as lawmakers buckle in to debate spending and whether to introduce new taxes as the state faces up to an estimated $16 billion shortfall over the next four years.

House and Senate Democrats last week introduced their plan to tax the state's wealthiest individuals and largest corporations and to raise the cap on property taxes as the operating budget during that time is expected to see nearly $900 million less than initially projected.

Adding new revenue sources to grow the budget into the future is a necessary move, according to Sen. June Robinson, D-Everett, chair of the Senate Ways and Means Committee, who said Senate Democrats, though they made "significant reductions" in certain areas, believe cutting their way through the budget was not responsible.

"The impacts would be too deep and catastrophic for our communities and our kids," Robinson said at a Monday news conference. She said lawmakers tried to "protect the things that actually affect people and their health as much as possible," although some new programs such as the Fair Start for Kids Act, need to be walked back because it "was not affordable this year."

The Senate proposal includes nearly $11 billion for maintenance-level increases in the next four years, with the bulk of the funding going toward K-12 education to the tune of $3.1 billion, $2.5 billion for the Department of Children, Youth and Families and $2.2 billion to the Department of Social and Health Services.

Increased funding for K-12 special education ($2.2 billion) and raises for public workers ($1.2 billion) are the biggest drivers of new policy-tied spending for the next four years, which will total $9.7 billion and be evenly distributed between the two-year budgets.

Recent collective bargaining agreements with state employee unions include general wage increases of 5% over two years and additional boosts for certain job classifications. Despite the increase in funding for state worker salaries in their proposal, Robinson said Senate lawmakers are also proposing that state workers be furloughed 13 days in 2026, equaling about a 5% salary reduction. Board-certified bonuses for teachers will not be affected, however.

The House Democrats' $77.8 billion spending proposal for the two-year budget funds the raises but does not include furloughs for workers.

Gov. Bob Ferguson, who has proposed $7 billion in cuts over the next four years, has floated monthly furloughs for the next two years starting in July, while honoring wage increases. Senate Republicans are suggesting forgoing the raises entirely and providing state employees with a $5,000 bonus instead.

Absent from the proposal was Ferguson's proposal, aiming to deliver on a campaign promise, for a $100 million grant program to help cities and counties hire more law enforcement officers. Senate lawmakers said the caucus decided to wait for a House version of the bill to come to the Senate, and will work with the governor and House lawmakers in the final budget to include the proposal.

"The governor is looking forward to working with legislative leaders to craft a balanced budget that preserves core services. Our team is in the process of reviewing the budget proposals released today," Ferguson's spokesperson Brionna Aho said in a statement.

His office did not respond to specific questions about Monday's budget proposals and did not respond to a request for comment last week when the tax proposals were released by Democrats.

Ferguson previously said he saw taxes as a last resort and that he was skeptical of a "wealth tax," which Senate Democrats say would apply to about 4,300 individuals and generate $4 billion a year starting in 2027 for school operating costs and special education.

The Senate revenue proposal also includes a plan to lower the sales tax from 6.5% to 6% starting in 2027 — a $3.2 billion cut reflected in the Senate budget proposal — and tapping $1.6 billion from the state's rainy day fund in 2026, and then paying it back in 2027 when new revenues come in.

In total, new tax proposals from the Senate, if passed, would net approximately $6 billion in 2025-27, and $11 billion in 2027-29 after the sales tax reduction, according to Senate Majority Leader Jamie Pedersen, D-Seattle.

The budget proposal from the House does not use reserve funds and does not include the half-cent cut to the sales tax.

"We see cuts to state services as more regressive than any tax option and so a cut to the sales tax did not seem like something that would serve the goals that we're trying to achieve here," House Majority Leader Joe Fitzgibbon, D-West Seattle, said Monday.

Rep. Tim Ormsby, D-Spokane, vice chair of the House Appropriations Committee, said House lawmakers did not move rainy day funds into the general fund in order to make sure there is a "cushion of reserves" at the end of the 2025-27 biennium with potential unknown actions by the federal government.

But on Monday, Robinson, in the Senate, said uncertainty at the national level is "so large," that it is hard for lawmakers to put forth a plan to mitigate it entirely. Senate Democrats, she said, looked for cuts before considering new revenue, and feel they share the governor's approach to the budget overall, estimating they adopted about 90% of cuts from both Ferguson and former Gov. Jay Inslee's proposals.

The House budget includes $6.8 billion total in funds at the maintenance level to continue programs already in place as well as to meet obligations dictated by state law. Inflation around K-12 staff salaries, forecasted caseload and per-capita childcare costs, medical assistance to those with low incomes, and long-term care services are the largest cost drivers.

House lawmakers said their proposal protects crucial services such as food, shelter and health care needs, and that they intend to keep funding for those programs at current levels. However, lawmakers noted some programs will be delayed, such as the Fair Start for Kids Act, increased eligibility for the Working Connections Child Care program and increased funding for nursing homes. The elimination of Office of Superintendent Public Instruction pass-through grants for K-12 schools are also included in the budget proposal, they said.

For the 2025-27 biennium, the House budget proposal leaves a projected balance of $3.2 billion in total reserves, including $2.1 billion in the state's rainy day account.

Republicans in the House and the Senate were critical of the proposals.

Rep. Travis Couture, R-Allyn, on Monday said the House budget proposal would "crush Washington's working families."

"This proposal includes a devastating set of tax increases — the largest in state history — all so Democrats can continue their record-breaking spending," Couture said. "If this budget passes, it will drive jobs out of Washington state, price people out of their homes and hurt the working class."

House lawmakers plan to pass their bill from the debate floor next Monday, while Senate lawmakers said they intend to pass the budget from their chamber Saturday.

Lawmakers will have until April 27 to strike a deal on a final budget before adjourning for the 2025 legislative session.

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