2:44 pm
April 22, 2020
Washington’s rainy day fund, the budget stabilization account (BSA), was established in the state constitution in 2008 (Article VII, section 12). Under the constitution, withdrawals may be made from the BSA at any time, for any reason, with a three-fifths majority vote of each house of the Legislature.
BSA funds may be withdrawn with a simple majority when:
- “the governor declares a state of emergency resulting from a catastrophic event that necessitates government action to protect life or public safety” or
- “the employment growth forecast for any fiscal year is estimated to be less than one percent”
(For more on the BSA, see this policy brief on Washington’s budget sustainability requirements and this policy brief detailing the uses of the BSA up to 2018.)
The table shows each bill that has made withdrawals from the BSA, along with how the Legislature voted and whether the withdrawals required a three-fifths vote or not. Of the 10 bills, five required a three-fifths vote. When bills are adopted that make appropriations from the BSA, the votes have typically not been close.
It’s important to note that the definition of a “catastrophic event” is open to interpretation. For example, in 2019, SB 6009 as originally introduced would have appropriated $40.7 million from the BSA for emergency fire costs and $744,000 from the BSA for measles response in Clark County. The governor had declared a state of emergency related to both fires and the measles outbreak. But the bill might have required a three-fifths majority vote because it was not clear that all members of the Legislature would agree that a cost of less than $1 million rose to the level of “catastrophic.” Because of this possibility, the Ways and Means Committee amended the bill to remove the measles funding.
The Legislature has already unanimously appropriated $200 million from the BSA this year in response to the coronavirus outbreak. (At the end of 2017–19, the BSA balance was $1.618 billion.) Rainy day funds are meant to be the first line of defense in the face of revenue shortfalls. Given the state and federal emergency declarations related to the outbreak and the historic unemployment numbers we’re seeing, I’d guess simple majorities will suffice to withdraw BSA funds.

Tags: COVID-19 , state action on COVID-19