The 2023–25 operating budget deal would increase appropriations from funds subject to the outlook (NGFO) by $5.642 billion (compared to the enacted 2022 supplemental). Of that, maintenance level changes (the cost of continuing current services, adjusted for enrollment and inflation) total $935.7 million and policy level changes total $4.707 billion. (See here for an overview of the budget deal, and here for our comparison of the budget proposals that were previously passed by the Senate and House.)

The chart below compares the distribution of the policy changes for 2023–25 to those in the earlier Senate and House proposals. (Stay tuned for more details on the various policy changes in the conference report.)

Meanwhile, the 2023 supplemental would reduce NGFO appropriations for 2021–23 by $789.6 million. That is net of $400.7 million in maintenance level increases and $1.190 billion in policy level decreases. The policy level decreases include $653.0 million from the enhanced federal match for Medicaid, $550.0 million from reducing the one-time extra payment for the unfunded liability in the Teachers’ Retirement System plan 1, and $150.0 million from reducing the appropriation for the paid family and medical leave program.

Compared to the appropriations level in the 2023 supplemental, the 2023–25 budget would increase appropriations by 10.2%. Compared to actual spending in 2019–21, the 2023–25 budget would increase appropriations by 35.2%.