Finds that in 2002 the governor initiated a new process for development of the operating budget that brought significant benefits to the people of Washington and that, if maintained as an integral part of the state's ongoing budget process, will bring greater benefits in the future. That process, called priorities of government, replaces the traditional, incremental budgeting approach that focuses on changes from existing spending levels with a new, performance-based approach that measures and evaluates the performance of state programs and services, at the activity level, in achieving a selected set of priority results for state government.

Finds that implementation of the priorities of government approach in the 2003-05 biennium improved the quality of decision making by both the executive and legislative branches, increased the public's understanding of the state budget and its engagement in the annual budget debate, and contributed heavily to the enactment of a budget that enabled the state to weather a major recession without tax increases while maintaining essential services and making targeted investments for progress toward statewide results.

Finds that failure to maintain, extend, and refine the priorities of government approach to state budgeting, and rather to fall back to the failed, incremental approach of the past, would result in harm to the citizens of Washington and the competitiveness of its economy.

Declares that the priorities of government process or a related, performance-based process shall be incorporated in the operating budget document submitted under RCW 43.88.030 with accompanying documentation that such a process was implemented.