The Economic and Revenue Forecast Council (ERFC) has adopted an outlook based on Gov. Inslee’s 2018 supplemental operating budget proposal. The supplemental would increase 2017–19 NGFS+ spending by $960.8 million and it would leave $2.151 billion in total reserves in 2017–19. According to the outlook, the proposal would leave an unrestricted ending fund balance in 2019–21 of $249 million; combined with $1.473 billion in the rainy day fund, total reserves would be $1.722 billion.

Gov. Inslee chose to comply with the four-year balanced budget requirement. Compliance depends on enactment of his proposed carbon pollution tax, which under the guidelines used to calculate the outlook would ordinarily not be included in the estimate. While not adopting a new rule to govern preparation of the outlook, the ERFC elected to acknowledge the governor’s intent and include $1.5 billion in projected carbon pollution tax revenue.

Read the brief here.