Today Senate Ways and Means Committee chair Christine Rolfes proposed a 2018 supplemental operating budget that would increase 2017–19 near general fund–state plus opportunity pathways (NGFS+) spending to $44.813 billion. This is an increase of $1.105 billion over the enacted 2017–19 budget, and it is $143.8 million more than Gov. Inslee proposed in December.

The proposal would reduce the state property tax rate from $2.70 per $1,000 of assessed valuation to $2.39/$1,000, in calendar year 2019 only (SB 6614). This would be funded with $403 million from the budget stabilization account (BSA, or rainy day fund).

Like the governor’s proposal, the Senate chair’s would fully fund teacher salaries in SY 2018–19, pursuant to the state Supreme Court’s Nov. 2017 order. This would increase spending by $777.9 million in 2017–19 and $193.9 million in 2019–21. Additionally, the proposal would create a dedicated account for the McCleary penalties that have been accruing, to the tune of $103.8 million. It would spend $25.3 million (from the dedicated McCleary account) to increase the special education multiplier, but it would also reduce the special education safety net to save $10.0 million (in the NGFS+). The proposal would also make changes to the regionalization factors that were enacted last year to increase salary funding to school districts with high home values as a way to help recruit and retain staff. These would increase spending by $24.9 million.

Thanks to the good news from the February revenue forecast, the Senate proposal would leave unrestricted ending fund balances of $922 million in 2017–19 and $82 million in 2019–21. It would appropriate $22 million from the BSA for fire costs. After transferring $213 million in 2017–19 and $190 million in 2019–21 from the BSA to the GFS to cover the property tax reduction, the BSA’s ending fund balance would be $1.477 billion in 2017–19 and $1.853 billion in 2019–21.