The conference report for the supplemental operating budget would increase 2023–25 appropriations from funds subject to the outlook (NGFO) by $2.143 billion. That includes maintenance level (the cost of continuing current services, adjusted for enrollment and inflation) changes and new policy. The maintenance level is estimated to increase by $1.107 billion. (The earlier House- and Senate-passed versions estimated that the maintenance level increase would be $1.132 billion. The conference report increased the estimated maintenance level savings for bond retirement and interest.)

New policy changes would increase appropriations by $1.036 billion, which is $54.2 million less than in the House-passed version and $300.7 million more than in the Senate-passed version. Interestingly, the cost of the new policy changes would be just $984 million in 2025–27.

The chart compares the policy changes.

Dept. of Commerce: Net policy changes are negative because solar ($114.0 million) and electric vehicle charging programs ($138.0 million) would be transferred to the capital budget. Major new spending includes:

• $55.5 million for emergency housing and shelter.
• $31.0 million for local homeless services.
• $25.0 million for local housing programs.

Department of Social and Health Services (DSHS):

• $135.0 million to operate Olympic Heritage Behavioral Health.
• $29.8 million for forensic beds at the state hospitals.
• $25.3 million for refugee support services.
• $72.8 million in savings from a delay in federal changes to disproportionate share hospital revenues.

Health Care Authority (HCA):

• $40.6 million in savings from the enhanced federal Medicaid match.
• $107.0 million to restore program integrity savings that were assumed for 2023–25 but will not be realized.
• $28.2 million to expand health care coverage for uninsured adults.

Department of Corrections: Net policy changes are negative because the budget would use $262.3 million in federal COVID relief funds in lieu of the NGFO.

Public Schools:

• $71.8 million to increase prototypical school staffing allocations for paraeducators, office supports, and noninstructional aides (2SSB 5882).
• $45.0 million to reimburse additional schools participating in the federal Community Eligibility Provision (CEP, which provides school meals at no cost).
• $43.6 million to increase allocations for maintenance, supplies, and operating costs (EHB 2494).
• $19.6 million to increase the special education cap from 15% to 16%.
• $76.9 million for pupil transportation.

For an overview of the operating budget conference report, see this post.