As in Gov. Inslee’s operating budget proposal, the Senate Ways & Means Committee chair’s 2023–25 proposal balances in part thanks to reductions in appropriations for 2021–23. The Senate chair’s 2023 supplemental proposal would reduce 2021–23 appropriations from funds subject to the outlook (NGFO) by $711.5 million.

Maintenance level (the cost of continuing current services, adjusted for enrollment and inflation) changes would increase appropriations by $423.9 million while policy level changes would decrease appropriations by a net of $1.135 billion.

The major NGFO policy changes in the proposed supplemental are:

• It would save $550 million by reducing the extra payment to the Teachers’ Retirement System (TRS) plan 1 to $250 million. (This reflects SB 5294, which I wrote about here.)
• It would save $125 million by reducing the appropriation for the family and medical leave insurance account. The appropriation (currently $350 million) may currently only be spent to the extent the account is in deficit at the end of 2021–23. The Senate chair’s proposal would not limit the appropriation in that way. Instead, it would directly appropriate $225 million to the account to seed the paid family and medical leave program reserve that is contemplated in SB 5286. (For more on the bill, see this post.)
• The proposal books $653.0 million in savings from the enhanced federal Medicaid match. (These are extra federal dollars provided during the pandemic that supplant state spending on Medicaid.) This reflects the decision from the federal government that the enhanced match will be phased down and end at the end of calendar year 2023.

Additionally, the proposed supplemental would not implement the state student loan program. This would save $150 million in the Washington student loan account, which the proposed 2023–25 budget would then transfer to the workforce education investment account (part of the NGFO).

Previous posts on the Senate chair’s proposals are here.