The Ways & Means Committee chair has proposed a supplemental operating budget that would increase 2021–23 appropriations from funds subject to the outlook (NGFO) by $4.681 billion. Revised NGFO appropriations would be $63.747 billion for the biennium. That’s 7.9% higher than enacted 2021–23 appropriations and 23.6% over 2019–21 spending.

Some major spending items include (amounts are for 2021–23 only):

• $2.0 billion for the multimodal transportation account
• $500.0 million for the strategic enterprise technology account
• $400.0 million for the school seismic grant account
• $350.0 million for the paid family and medical leave insurance account
• $346.5 million for K–12 enrollment stabilization
• $173.8 million for K–12 student support staffing
• $232.5 million for state employee compensation
• $209.2 million for salmon recovery
• $208.2 million for provider rates in long-term care and developmental disabilities

The proposal does not include any major tax relief. The largest revenue reductions over four years are $75.0 million from a B&O tax deduction for credit card processing companies and $49.5 million for B&O tax credits for the motion picture program.

Over four years, the proposal would leave an unrestricted NGFO ending balance of $362 million. With the budget stabilization account (BSA, or the rainy day fund), total reserves on the balance sheet would be $1.611 billion. However, the budget would also transfer $2.0 billion to the Washington rescue plan transition account. (This is the shadow reserve account created last year; money in the account may be used at any time—it is not subject to the constitutional guardrails around the BSA. The WA rescue plan transition account balance is currently $1.0 billion.) The proposal would make the required 1% deposits to the BSA, but it would not make additional deposits.

Additionally, under the four-year balanced budget requirement, the budget must balance within available fiscal resources, which are defined as the greater of the official revenue forecast or 4.5% revenue growth in each year. This proposal assumes only the official revenue forecast, which grows by less than 4.5% each year. Effectively, the W&M chair is holding back $896 million that could be spent down, under the outlook rules. (The Legislature did the same thing last year.)

The Ways & Means chair’s budget proposal was released this morning at 8 am and will be heard by committee today at 4 pm. The House Appropriations chair’s supplemental operating budget proposal is scheduled to be released today at noon and will be heard today at 3:30 pm. This is a tight timeframe, even by the Legislature’s typical budget standards. Stay tuned for more as we read through the details.