Opinion: Washington state’s rainy day fund won’t help fire victims

Rep. John Ley says Washington's reserves sit at about 5.6 percent, the lowest in the nation, leaving little for wildfire relief. — Rep. John Ley says Washington’s reserves sit at about 5.6 percent, the lowest in the nation, leaving little for wildfire relief. Photo courtesy AI generated image courtesy Rep. John Ley

🎧 WA’s Rainy Day Fund Empty as Wildfires Rage

Rep. John Ley says poor fiscal management is one culprit

Rep. John Ley
18th Legislative District

In the past two legislative sessions, Olympia Democrats pushed through the largest tax increases in state history. At the same time, the Democrat majority raided the rainy-day account down to the lowest reserves in the nation. What remains would last the state a month at most. Moody’s and other nonpartisan budget watchdogs are sounding the alarm.

Rep. John Ley

Pew Research and financial tracking groups rank Washington at or near 49th or 50th in the nation for total reserve percentages relative to tax revenues. State Treasurer Mike Pellicciotti has said his office advises maintaining reserves at no less than 10 percent of annual revenue. Current levels sit at about 5.6 percent. “That means only about 5.6 percent is sitting in reserves right now, and it needs to be higher,” he noted. “It’s the lowest in the country.”

Moody’s points to structural imbalances: spending has exceeded incoming revenue across recent legislative cycles; reserves have been depleted through heavy reliance on the rainy-day fund and one-time budget fixes; and revenue projections remain uncertain, including those tied to legal challenges over new tax proposals. The result is clear fiscal vulnerability.

A healthy rainy-day fund exists precisely for moments like this — December floods in the Puget Sound region or the wildfires now burning across Spokane and much of eastern Washington. Sadly, the piggy bank is nearly empty.

In 2025, majority Democrats cut $65 million from wildfire funding. I supported Senator Shelly Short and fellow Republicans in 2026 when we restored $60 million through SB 5893. The majority blocked our efforts to do more. Instead, they raided a $4 billion retired firefighters’ pension fund and redirected the money toward wasteful spending, including bicycle education programs.

Washington families are already stretched thin — everything costs too much. Now more than 900 homes and businesses have been lost in the Spokane region alone. Rebuilding will take billions of dollars and years of recovery. State savings that should have been available to help are gone.

Olympia is not broke. It collects record revenues and spends at record levels in an $80 billion budget. Two former Democratic governors have acknowledged the reality: Democrats lack fiscal discipline and suffer from a spending addiction.

Budgets reveal values, priorities, and results. That is why I support a no-new-taxes balanced budget that cuts billions in waste while protecting rainy-day reserves, healthcare funding, schools, and public safety. The majority chose higher taxes and continued wasteful spending. The outcome has been deeper deficits and too little to show for the people we serve.

Wildfires do not care about party labels. The devastation they leave is immense. This is a moment to set partisan bickering aside and do what is right for Washingtonians. I support prioritizing emergency response funding, holding arsonists accountable, and protecting air quality, property, and lives.

Every Washington citizen deserves access to relief in their darkest hour. I am grateful that President Trump and the Governor are working together on this crisis, and I stand ready to pursue bipartisan solutions going forward.

Rep. John Ley says poor fiscal management is one culprit

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