Blog

Capital budget compromise would increase 2021–23 appropriations by 23%

As we wait for the operating budget conference report, the Legislature has released a compromise capital budget proposal. (It was passed by the House yesterday.) It would increase 2021–23 capital appropriations by $1.507 billion from all funds, which is $260.2 million more than was included in the Senate-passed supplemental capital budget. Revised 2021–23 capital appropriations […]

The operating budget agreement should be available later today—how much will be kept in reserves?

At yesterday’s Democratic leadership media availability, Sen. Billig said that the supplemental operating budget should be made public this afternoon or evening. Additionally, he said, One of the things that is really important is that we finish with enough reserves that do two things. One: allow us to weather any bad news that may come […]

New brief: Biennial-Sized Spending in a Supplemental Year: Comparing the Senate- and House-Passed Budgets

The Senate- and House-passed supplemental operating budgets would spend almost all of the $13.8 billion surplus in funds subject to the outlook. Compared to the enacted 2021–23 biennial budget, appropriations would increase by 7.7% in the Senate-passed budget and by 10.6% in the House-passed budget. Compared to 2019–21, revised 2021–23 appropriations would increase by 23.3% […]

What is the impact to the budget if the capital gains tax is unconstitutional?

Yesterday the Douglas County Superior Court ruled that the capital gains tax is unconstitutional. According to the ruling, the tax is an income tax and it violates the state constitution’s uniformity requirement and 1% limit on property taxes. The attorney general has already said he will appeal. If the state supreme court ultimately agrees that […]

Reserves should be kept in the budget stabilization account

Last year, the Legislature transferred $1.820 billion from the budget stabilization account (BSA, or the rainy day fund) to the general fund–state (GFS). Then, the Legislature transferred $1.0 billion from the GFS to a new Washington rescue plan transition account (WRPTA). On Saturday, the House rejected an amendment to the supplemental operating budget that would […]

The Senate and House have passed their supplemental budget proposals; both would significantly increase spending

The Senate passed a supplemental operating budget on Friday, and the House passed one on Saturday. The 2021–23 biennial budget adopted last year appropriated $59.067 billion from funds subject to the outlook (NGFO). The Senate-passed budget would increase 2021–23 appropriations to $63.634 billion and the House-passed budget would increase them to $65.308 billion. Compared to […]

K–12’s share of the state spending would drop significantly under both the Senate and House budgets

As the state increased appropriations for schools in response to the McCleary decision on school funding, the share of the budget (in terms of funds subject to the outlook, or NGFO) going to public schools increased from 42.6% in 2009–11 to 51.6% in 2019–21. The share for public schools would drop significantly in the budgets […]

The proposed reserves in the House and Senate operating budget proposals are worryingly low

In a December policy brief, we proposed some general principles for legislators to follow as they dispose of a historically large surplus (which has grown since then). The first principle is to restore reserves. We suggested that not only should the Legislature return the funds needlessly swept from the budget stabilization account (BSA, or the […]

Appropriations Committee made only minor changes to proposed operating budget

On Wednesday, the House Appropriations Committee approved a supplemental operating budget that would increase 2021–23 appropriations from funds subject to the outlook (NGFO) by $6.264 billion. That is net of new policy and maintenance level savings. Amendments in committee added $47.7 million in NGFO appropriations for 2021–23. A few notable amendments include: $947,000 to fund […]

The Senate supplemental proposal would spend down general federal relief money; the House would save about $1 billion of it

Billions of dollars in federal relief have flowed to Washington in response to the pandemic. Some of that is earmarked by federal legislation for specific purposes, but the coronavirus state fiscal relief fund (CSFRF) may be used broadly in response to the pandemic and its economic effects. The state of Washington received $4.428 billion from […]