Policy changes in the governor’s proposed operating budget would increase appropriations by $4.185 billion

Gov. Inslee’s 2022 supplemental operating budget proposal would increase 2021–23 appropriations from funds subject to the outlook (NGFO) by 5.1% (compared to the enacted 2021–23 budget). The total increase of $3.041 billion is the net of $1.144 billion in maintenance level decreases (the cost of continuing current services, adjusted for inflation and enrollment) and $4.185 billion in policy level increases. The chart below shows how the policy changes are distributed among budget areas.

In public schools, NGFO policy changes total $1.039 billion. Those increases are offset by maintenance level reductions of $928.1 million, driven by lower enrollment. K–12 policy increases include $746.0 million for accelerated learning opportunities, $173.9 million for student support staffing, and $52.0 million for residential outdoor schooling.

In the special appropriations budget area, several appropriations are made from the NGFO to various accounts, including:

• $337.9 million to the Puget Sound capital construction account (for ferry projects appropriated in the transportation budget)
• $217.0 million to the liability account (to ensure it is not in deficit; the account is used to pay for settlements and judgments against the state)
• $100.0 million to the home security fund account (to continue shelter capacity grant funding into ensuing biennia)
• $100.0 million to the salmon recovery account (for riparian grants; it is then appropriated in the proposed capital budget)
• $82.0 million to the family and medical leave insurance account (to keep the account from being in deficit)
• $68.0 million to the judicial stabilization trust account (in support of costs related to the State v. Blake decision)
• $54.0 million to the multimodal account (for rail projects appropriated in the transportation budget)
• $50.0 million to the energy efficiency account (for the emissions-intensive, trade-exposed industries program; it is then appropriated in the proposed capital budget)

In governmental operations, NGFO appropriations for the Department of Commerce would nearly double. Policy changes include: $100.0 million for solar incentives, $100.0 million for electric vehicle rebates, and $40.6 million for right of way response and outreach (related to homeless people living in encampments on the public right of way).

In the Department of Social and Health Services (DSHS), the proposal would increase appropriations by $180.9 million to continue enhanced provider rates into 2024 and by $54.6 million for legal settlements. It would save $134.3 million by assuming that the enhanced federal Medicaid match is in effect through June 2022.

In the Health Care Authority (HCA), the proposal includes $50.0 million for behavioral health care provider relief and $193.0 million to provide continuing Medicaid coverage (as a condition of the enhanced federal match). It would save $161.2 million by assuming the extension of the enhanced federal Medicaid match.

In the other human services budget area, total NGFO appropriations for the Department of Health would increase by 163.1%. Policy changes include $173.2 million to contain the spread of COVID-19 and $99.9 million for vaccines.

Across budget areas, increases to state employee compensation total $360.1 million. This includes a general wage increase of 3.25%, funding for targeted base range increases, and a 3% benefit increase for members of the Public Employees’ and Teachers’ Retirement Systems Plan 1.