The conference report for the supplemental operating budget would increase appropriations from funds subject to the outlook (NGFO) by $2.143 billion (3.1%). Revised 2023–25 NGFO appropriations would be $71.947 billion, which would be 15.8% higher than actual spending in 2021–23. The spending change in the conference supplemental is $78.6 million less than in the House-passed supplemental and $276.2 million more than in the Senate-passed supplemental. (We compared the House- and Senate-passed versions in this policy brief.)

The conference proposal would not increase taxes; like the earlier proposals, it assumes passage of several bills that would reduce revenues. The revenue legislation assumed in the conference proposal would reduce revenues by $28.5 million in 2023–25 and $67.4 million in 2025–27. This includes two bills that were not assumed in the earlier versions: HB 1976 and SB 6316.

The revenue legislation includes:

• HB 1976 (increasing incentives for early compliance with the clean buildings standard), -$13.9 million in 2023–25 and -$33.5 million in 2025–27.
• SB 6316 (sales and use tax deferral for SR 520 corridor transportation projects), -$11.9 million in 2023–25 and -$22.4 million in 2025–27.
• HB 2199 (tax exemptions for carbon allowances), -$1.1 million in 2023–25 and -$5.8 million in 2025–27.
• SB 6175 (retail sales and use tax deferral for conversions of commercial property to housing), -$2.1 million in 2025–27.
• SB 6038 (B&O tax preferences for childcare providers), -$0.4 million in 2023–25 and -$1.1 million in 2025–27.

Fund transfers include $14.0 million from the NGFO to the motor vehicle account, $22.5 million from the NGFO to the disaster response account, and $10.0 million from the Washington student loan account to the NGFO.

Additionally, like the House-passed budget, the conference report would transfer $798.0 million from the Washington rescue plan transition account (WRPTA, the shadow reserve account created during the pandemic) to the NGFO, leaving an ending WRPTA balance of zero at the end of 2023–25.

The proposal would leave an unrestricted NGFO ending balance of $510 million at the end of the four-year outlook period. That’s much higher than in the House- and Senate-passed versions. Total reserves (the unrestricted NGFO ending balance, the budget stabilization account, and the WRPTA) would total $2.617 billion at the end of 2025–27, which is 7.1% of revenues and other resources.