Blog

Operating budget includes $150 million for a new, low-interest student loan program

This year the Legislature passed E2SHB 1736, which establishes the Washington student loan program. (The bill has not yet been signed by the governor.) The bill requires the Washington Student Achievement Council (WSAC) to design a student loan program that has an interest rate that is lower than loan rates subsidized by the federal government. […]

New rules will be required on how transitional kindergarten enrollments affect all-day kindergarten funding allocations

In Washington, children under five years old who do not have access to early learning opportunities but who need extra preparation for kindergarten (as determined by school districts) may enroll in transitional kindergarten—if their school district offers the program. According to the Office of Superintendent of Public Instruction (OSPI), by rule, school districts may “adopt […]

The operating budget includes $200 million for future community reinvestment grants

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 […]

Budget provisos include studies on human services vendor rates, an evaluation of Washington’s electric grid, a voting data repository, and more

Below are some interesting provisos in the supplemental operating budget bill. Many of them require studies, which could result in legislative action down the road. (Amounts shown are from all funds.) Human Services Vendor Rates: $800,000 for a behavioral health comparison rate study, to establish benchmark payment rates reflecting the cost of providing services. A […]

March report on state tax collections

The monthly report on general fund revenue collections from the state’s Economic and Revenue Forecast Council (ERFC) was issued yesterday. For the sales tax, the use tax, the business and occupation tax, the public utility tax, the tobacco products tax, and penalties and interest (collectively the Revenue Act receipts), this report covers payments received between […]

At the end of the outlook period, operating budget reserves will be either 5% or 13% of general state revenues, depending on how you define them

The Legislature passed the 2022 supplemental operating budget (as recommended by the conference committee) last night before adjourning. Yesterday I showed how the Legislature decided to use the $13.8 billion surplus in funds subject to the outlook (NGFO). Of the surplus, 14.1% goes to reserves—the unrestricted NGFO ending balance and the Washington rescue plan transition […]

The operating budget would use 80.5% of the state’s surplus for new spending

As we noted in our brief comparing the Senate- and House-passed operating budgets, the surplus in funds subject to the outlook (NGFO) is about $13.8 billion over the outlook period. That does not include the ending balance of the budget stabilization account (BSA, or the rainy day fund), the current balance of the Washington rescue […]

Policy changes in the operating budget would increase NGFO appropriations by $6.202 billion

The 2022 supplemental operating budget, as proposed by the conference committee yesterday, would increase 2021–23 appropriations from funds subject to the outlook (NGFO) by $5.071 billion. That figure is net of changes to the maintenance level (the cost of continuing current services, adjusted by enrollment and inflation) and new policy. Maintenance level changes would reduce […]

Under operating budget compromise, 2021–23 appropriations would be 24.3% higher than 2019–21 spending

The supplemental operating budget conference report would increase 2021–23 appropriations from funds subject to the outlook (NGFO) by $5.071 billion. Revised 2021–23 NGFO appropriations would be $64.138 billion. This is an increase of 8.6% over the enacted 2021–23 biennial budget and an increase of 24.3% over 2019–21 spending. Appropriations in the conference report are $503.9 […]

Transportation budget’s exported fuel tax replaced with annual transfers from the general fund and public works assistance account

The transportation package that was proposed in February would have increased transportation revenues by $16.801 billion over 16 years. That included $2.053 billion in revenues from a new tax on exported fuel. The exported fuel tax provision was later stripped by the House. The conference report for the transportation budget would increase revenues by $16.988 […]