Reason Foundation Report Details Washington State's $150 Billion Liabilities

A report from the Reason Foundation detailed Washington State's financial situation, noting nearly $150 billion in combined liabilities for fiscal year 2024. The report found that the state's workers' compensation system is the largest contributor to this debt, rather than traditional government borrowing. As of June 30, 2024, Washington reported approximately $43.7 billion in workers' compensation claims liabilities.

The state insures most workers itself, making the workers' compensation system a major financial obligation. Over $27 billion of the claims liabilities is tied to supplemental pension cost-of-living adjustments for injured workers, which state law requires the government to pay as they come due.