Each legislative session, legislators introduce bills that will impact local governments.  A local government fiscal note (LGFN) is a concise analysis of the estimated fiscal impacts of a bill on local governments.  It outlines the budgetary implications of the bill on counties, cities and special purpose districts, and highlights variations in impacts that may be experienced by different communities across the state.

The Local Government Fiscal Note Program prepares notes in accordance with Chapter 43.132 RCW, "Fiscal Impact of Proposed Legislation on Political Subdivisions."  The statute requires completion of each note within one week of a request from a member of the Legislature.  The program completed over 500 fiscal notes during the 2008 (short) legislative session and over 700 notes during the 2007 (long) session.

Local government fiscal notes are sent to the policy and appropriations committees of each house and available to members of the public at committee hearings and online.  Fiscal notes ensure that the potential impact of legislation on the financial resources of local governments is identified and incorporated into legislative deliberations.  They are also used as a decision-making tool in establishing the state budget.