As I noted on Wednesday, Gov. Inslee’s 2023–25 operating budget proposal would increase appropriations from funds subject to the outlook (NGFO) by 9.8%, or $6.255 billion. That includes the maintenance level plus new policies. (The maintenance level is the cost of continuing current services, adjusted for enrollment and inflation.)

Under the governor’s proposal, the NGFO maintenance level for 2023–25 is $65.526 billion. That’s an increase of 2.2% ($1.401 billion) over current 2021–23 appropriations, and it’s 1.1% higher than the 2023–25 maintenance level that was estimated in the official budget outlook (based on the 2022 supplemental). On top of that, the governor would increase NGFO appropriations for new spending by $4.854 billion.

The chart below shows how the policy changes would be distributed. Some of the major proposed new NGFO appropriations include:

• Department of Commerce: $76.0 million to maintain emergency housing and $60.0 million for the encampment resolution program.
• Department of Social and Health Services (DSHS): $153.3 million for the adult family home bargaining agreement, $283.0 million to adjust consumer directed employer (individual provider) rates, $62.4 million for homecare agency parity with the consumer directed employer rates, $80.6 million to increase Medicaid provider rates, $55.4 million to increase skilled nursing facility rates, and $70.2 million to increase assisted living provider rates.
• Health Care Authority (HCA): $52.2 million for a Medicaid behavioral health provider rate increase and $71.0 million to restore assumed (but not expected to be realized) savings from program integrity efforts.
• Department of Children, Youth, and Families (DCYF): $231.2 million for the family child care collective bargaining agreement, $83.6 million to expand the Early Childhood Education and Assistance Program (ECEAP), $65.2 million to increase ECEAP provider rates, and $138.9 million to increase Working Connections Child Care provider rates.
• Public Schools: $351.9 million for a salary inflation adjustment (4.5% for school year 2023–24), $63.6 million for the residential outdoor school program, and $74.7 million to increase the special education cap from 13.5% to 15%. (Additionally, outside of the NGFO, the budget would reappropriate $365.6 million in federal COVID relief money for schools.)
• Higher Education: $50.0 million to implement the Washington Student Loan Program and $60.0 million to support workforce programs in community and technical colleges.
• Special appropriations: $100.0 million for foundational public health services.

The costs of the collective bargaining agreements with state employees are accounted for in each agency. Compensation changes for state employees (not including the bargaining with providers mentioned above) would increase NGFO spending by $656.6 million in 2023–25.