[Updated 12/14]

Gov. Inslee has proposed a 2024 supplemental operating budget that would increase 2023–25 appropriations from funds subject to the outlook (NGFO) by $1.955 billion (2.8%). Revised 2023–25 NGFO appropriations would be $71.760 billion, which would be 15.5% above actual spending in 2021–23.

The proposal would not increase revenues, but it would use reserve funds. First, it would transfer $798 million from the Washington rescue plan transition account (WRPTA, the shadow reserve account created in 2021). This transfer would reduce the WRPTA balance to zero. Second, the budget would appropriate $19.4 million from the budget stabilization account (BSA, or the constitutional rainy day fund). The $19.4 million would be used by the Department of Natural Resources for wildfire response. (Note that making this appropriation would require a three-fifths vote of the Legislature, unless the governor declares an emergency and the appropriation is made in a standalone bill.) [Update: Here’s the governor’s standalone bill, which could be enacted with a simple majority.]

The outlook for the enacted 2023–25 budget assumed $493 million in reversions (appropriations that are not ultimately spent) for the biennium. The governor’s proposal assumes $859 million in reversions, thereby freeing up $366 million for use on new policies while still allowing the budget to balance. (See this budget preview post for background information on how reversions have been higher than normal in recent years.)

The proposal would leave an unrestricted NGFO ending balance of $2.774 billion and total reserves of $4.104 billion in 2023–25. The governor’s budget documents do not include a four-year outlook, so it’s unclear at this point what the proposal leaves as an ending balance for 2025–27.

Stay tuned for more as I dig through the numbers.