Gov. Inslee proposed creating a community reinvestment account for communities that “have experienced historically and inequitably enforced criminal laws and penalties for illegal drug sales, possession and use.” His supplemental budget proposal would have transferred $125 million from the general fund–state (GFS) to the account and then appropriated the full amount.

The governor’s request legislation for the program, HB 1827, was passed by the House this year but not by Senate. Under HB 1827, the Legislature would have transferred $125 million to the new community reinvestment account (CRA) each year.

Although HB 1827 was not adopted, the operating budget passed by the Legislature creates the CRA (sec. 947). The CRA may be used for economic development, civil and criminal legal assistance, community-based violence intervention and prevention services, and reentry services.

Sec. 719 of the budget appropriates $200 million from the GFS to the CRA in FY 2023. However, none of that money would be appropriated from the CRA this biennium.

Instead, the Department of Commerce (sec. 128(134)) must “develop a community reinvestment plan to guide the distribution of grants” from the CRA. The plan must “address racial, economic, and social disparities in communities across the state created by the historical design and enforcement of state and federal criminal laws and penalties for drug possession.” The plan must also show how the CRA grants will “produce significant long-term economic benefits” for citizens, a community, or the state. Additionally, the plan must ensure that the projects won’t need state support on an ongoing basis. A preliminary report is due by Dec. 1, 2022 and the final report is due by June 30, 2023.

(Previous posts on the supplemental budget are here.)