12:47 pm
May 11, 2020
The Seattle Times editorial board argues that the Legislature should “quickly and transparently cut state spending to get through the virus-induced economic crisis.” The editorial tries to put the preliminary estimate of $3.8 billion in revenue reductions in the current biennium in context, but in doing so, it understates the problem.
As context for the estimate of lost revenues in the 2019–21 biennium (FY 2020 and 2021), the editorial cites operating and capital spending from all funds in one fiscal year ($57.9 billion in FY 2020). But the $3.8 billion is a loss of revenues for the biennial operating budget from funds subject to the outlook (NGFO). Thus, the more appropriate comparison is $53.3 billion (NGFO operating spending in 2019–21).
I’ve re-created the editorial’s chart using the more relevant budget figures. The amounts for FY 2020 and FY 2021 are based on the enacted 2020 supplemental budget, accounting for the governor’s vetoes.
Also, the editorial notes that although the state population increased by about 12 percent over the past decade, state spending increased by 69 percent. Using operating NGFO spending, the spending increase is 79.3 percent. (We’ve written about the recent dramatic increases in state spending; see here, here, and here.)
