The 2019–21 operating budget proposed by the Senate Ways and Means Committee Chair would increase appropriations from funds subject to the outlook by $7.511 billion (16.8 percent) over 2017–19. Of that, $1.667 billion is due to spending on new policy, while maintenance level changes (the cost of continuing current services, including the response to the McCleary decision on school funding) make up the rest.

Like the House budget proposal, the Senate Chair’s proposal includes a tax package. It would increase revenues by $518 million in 2019–21, largely due to increases in the real estate excise tax for properties with selling prices over $1 million. Senate Democrats have also proposed a capital gains tax in conjunction with the budget; revenues from the capital gains tax would be used to reduce other taxes and create a working families tax credit.

Although this proposal would increase spending by less than the House proposal and relies on less risky revenue sources, it still represents a substantial increase over 2017–19. This is on top of a 16.9 percent increase in 2017–19 and a 13.6 percent increase in 2015– 17. Should an economic downturn occur in the next few years, this significant increase in spending could prove to be unsustainable.

Read the report here.