As passed by the Legislature, the supplemental operating budget increases appropriations from funds subject to the outlook (NGFO) by $1.036 billion for new policy. As I noted last week, the new policy items would cost less in 2025–27 than in 2023–25.

According to the outlook and summary documents, the new policy spending for 2023–25 approved by the Legislature is estimated to cost $984.4 million in 2025–27. Policy changes in the earlier Senate- and House-passed versions would have cost more in the second biennium than in the current biennium.

This suggests that the final budget assumes that more of the adopted spending is one-time instead of ongoing. The Legislature could come back next year and choose to continue to spend money in 2025–27 on the items that are currently considered one-time, but they are not assumed in the outlook.

Additionally, although the net cost of new policy decreases in 2025–27, many individual spending items do increase substantially in the second biennium. Some policy items notable for their increase or decrease in the second biennium include:

• Funding for emergency housing and shelter, local housing programs, and local homeless services is all one-time.
• Funding to expand support services for refugees is one-time.
• Operating support for the UW hospitals and Behavioral Health Teaching Facilities is one-time.
• Adjustments to the Washington College Grant to account for award levels at 56–65% of median family income: $0 in 2023–25, $43.8 million in 2025–27.
• Increasing the special education enrollment cap: $19.6 million in 2023–25, $52.3 million in 2025–27.
• Funding to operate 72 beds at Olympic Heritage Behavioral Health: $135.0 million in 2023–25, $123.1 million in 2025–27.
• Funding to contract for 40 community-operated beds at Olympic Heritage Behavioral Health: $3.4 million in 2023–25, $29.2 million in 2025–27.
• Health care for uninsured adults (with incomes at or below 138% of the federal poverty level, regardless of immigration status): $28.2 million in 2023–25, $5.8 million in 2025–27.
• Basic foster care rate increase (effective FY 2026): $0 in 2023–25, $11.5 million in 2025–27.
• Developmental disabilities community residential rate increase (effective Jan. 1, 2025): $5.5 million in 2023–25, $23.3 million in 2025–27.
• Funding to pass through all child support to families on Temporary Assistance for Needy Families (effective Jan. 1, 2026): $407,000 in 2023–25, $17.3 million in 2025–27.