“There are risks related to liquidity, federal coercion and our credit rating.”
- Mike Pellicciotti, State Treasurer
“Statistically speaking, it’s a relatively good time for people seeking work — but the unemployment rate alone doesn’t tell us what people are experiencing.”
- Anneliese Vance-Sherman, Chief Labor Economist
Washington enters the 2026 legislative session with long-standing budget guardrails in place but growing economic headwinds.
State Treasurer Mike Pellicciotti said the state’s AAA credit rating and long-term fiscal stability depends on lawmakers maintaining reserves, managing debt and fully funding pensions. Washington is now among the states with lowest reserve levels in the country, with only 12.8 days of operating costs on hand. He warned tapping reserves makes budget decisions riskier in a tight year marked by federal uncertainty.
“I don’t want them to take door number three — accounting gimmicks,” Pellicciotti said.
Chief Labor Economist Anneliese Vance-Sherman said a steady unemployment rate masks a flattening job market. Health care and transportation are adding jobs, while tech, manufacturing and aerospace lag. Rising unemployment claims signal stress.
“The unemployment rate alone doesn’t tell the whole story,” she said, urging lawmakers to track industry trends as economic volatility grows.