Earlier, Kriss gave an overview of Gov. Inslee’s proposed 2020 supplemental operating budget, focusing on the balance sheet. As Kriss noted, Gov. Inslee would make significant appropriations from the budget stabilization account (BSA, or rainy day fund). As such, it’s important to consider the level of appropriations from funds subject to the outlook (NGFO) and the BSA.

Further, it’s useful to include appropriations from the workforce education investment account (WEIA), which was created earlier this year to fund higher education programs (which are typically funded through the NGFO). In terms of the NGFO+BSA+WEIA, the budget proposal would increase 2019–21 appropriations by $1.166 billion. Of that, $506.4 million is maintenance level (the cost of continuing current services) and $659.5 million is new policy.

After looking over the spending proposals, possibly the most jarring thing is that the proposed increase in spending on public schools accounts for just 5.4 percent of total proposed spending increase (NGFO+BSA+WEIA). That’s quite the change from the budgets of the McCleary era, which focused spending on public schools. But as the McCleary case is over, the governor noted in his budget press conference that he believes it is time to shift focus to homelessness.

At the press conference, he said he opted to use the BSA to fund homelessness programs rather than increase taxes because the money is needed immediately. The BSA appropriations would occur via a separate bill from the supplemental. The proposal would appropriate:

• $280.7 million for the home security fund account, “to provide sufficient funding for homeless response program expenditures” in 2019­–21 and 2021–23.
• $30.0 million for the housing trust fund, “to provide sufficient funding for additional homeless shelters and enhancements to existing shelters” in 2019–21 and 2021–23.
• $8.0 million for the model toxics control operating account, “to provide sufficient funding to remove solid, hazardous, and infectious waste generated by vacated homeless encampments” in 2019–21 and 2021–23.

These appropriations from the BSA would require a three-fifths vote of the Legislature.

Here are some other interesting points from the supplemental proposal:

• Policy changes in K–12 would be concentrated in pupil transportation (up by $67.6 million).
• The Office of Financial Management would be required to review and report on the K–12 pupil transportation funding system.
• Policy spending on special education would be reduced by $80.9 million, but that’s due to a transfer of the Early Support for Infants and Toddlers program to the Department of Children, Youth, and Families.
• The Washington State Institute for Public Policy would have to study special education services, “in the interest of addressing ongoing concerns about funding and service gaps with future investments.”
• Policy spending on school employee health benefit rates would be reduced by $37.2 million to reflect actual data from the first open enrollment for the School Employees’ Benefits Board.
• It assumes that SSB 5717 will be enacted this year. (The bill would restrict how employers may schedule employees.)
• It would require a study of “nontraditional workers,” to “recommend policies and practices regarding the state’s worker and small business programs, address changes in the labor market, and continue work initiated by the independent contractor employment study” funded in 2018.
• The Department of Enterprise Services would have to study the increase in filed tort claims, especially those against the Department of Children, Youth, and Families.
• The enacted 2019–21 biennial budget used $625,000 from dedicated workers’ compensation funds to implement E2SSB 5116 (clean energy). The Building Industry Association of Washington sued. The governor’s proposal would instead fund E2SSB 5116 from the general fund–state. However, the governor’s proposal would use the dedicated workers’ compensation funds to implement other bills, including SSB 5717.
• The proposal would spend $35.9 million from the family and medical leave insurance account to increase staffing for the paid family and medical leave program.
• It would increase pension contribution rates in order to provide PERS/TRS plans 1 retirees with a 1.5 percent pension increase.