Today Gov. Inslee signed 2ESHB 2376 (the 2016 supplemental operating budget) and ESHB 2988 (which makes appropriations from the budget stabilization account for wildfire costs).

The governor vetoed several provisions of the supplemental. A big one has to do with the public works assistance account (PWAA). Section 935 of the supplemental notes that it is the Legislature's intent in 2017-19 "to continue the policy since 2013 of not authorizing new loans from the account." The enacted 2015-17 biennial budget had stated that it was the Legislature's intent that in 2017-19, $73.0 million of future loan repayments would be allocated from the PWAA for basic education. The supplemental added another $154.4 million to that.

The veto means that only the $73.0 million from the PWAA is intended for basic education next biennium. Of course, as the governor writes in his veto letter, "Use of funding in the account next biennium is a decision for the next Legislature." One Legislature can't bind the next.

Without the $154.4 million in 2017-19, the budget no longer balances over four years. As we wrote in our report on the supplemental, the four year balanced budget requirement does not apply in years (like this one) when appropriations are made from the budget stabilization account. (More on the requirement here.)

Additionally, Gov. Inslee vetoed the use of the performance audits of government account by the Department of Revenue. The DOR would have been able to use $10.0 million from the account for its audit functions. The Deputy State Auditor said, "Thanks to this veto, we can avoid layoffs and complete our performance audit work plan." Still, the Auditor's Office has "committed to leaving $5 million in the Performance Audits of Government Account to be transferred to the general fund for other uses."