Budget

Estimated reserves decline in the official budget outlook

Yesterday the Economic and Revenue Forecast Council (ERFC) approved an official budget outlook based on the 2024 supplemental operating budget. The unrestricted ending balance in funds subject to the outlook (NGFO) is significantly smaller for both the current and next biennium than had been estimated when the budget was passed by the Legislature. This means […]

Gov. Inslee’s budget vetoes didn’t significantly change appropriations

Gov. Inslee vetoed some sections of the 2024 supplemental operating and transportation budgets. (He did not veto any sections of the capital budget.) The vetoes have only a modest impact on appropriations. According to the state’s fiscal data (updated today), the enacted budgets (reflecting the governor’s vetoes) appropriate just a few million less than the […]

The Washington student loan program design is still not complete, and the Legislature continues to repurpose its funding

The historically large 2022 supplemental operating budget included $150.0 million in seed money for a new, low-interest student loan program. The program was established by E2SHB 1736 (also enacted in 2022), but the bill left the details to be worked out by the Washington Student Achievement Council (WSAC). In early 2023, a WSAC report raised […]

How the state budgets prepare for the possibility that the climate commitment act will be repealed (as revenues in the latest carbon auction came in low)

Climate commitment act (CCA) funds (proceeds from the carbon emission allowance auctions) are appropriated in the operating, capital, and transportation budgets. The supplemental budgets passed by the Legislature this year appropriate CCA funds assuming the current revenue forecast, but they delay a large share of those appropriations so that they will be effective only if […]

Operating budget provisos include studies and work groups on tax policy, education, housing, human services, and public safety

Earlier today we published our overview of the operating budget as passed by the Legislature. (The governor has not yet signed the budget.) As always, the budget is rife with provisos that are too small to make the overview but may provide some hints as to what the Legislature might want to work on next […]

New brief: The Supplemental Operating Budget Increases Spending 3.1% and Drains the Shadow Reserve Account

The Legislature has passed a supplemental operating budget that would increase 2023–25 appropriations from funds subject to the outlook (NGFO) by $2.143 billion (3.1%). Including the supplemental, revised 2023–25 appropriations are 15.8% higher than actual 2021–23 spending. (The long-term average biennial growth is 9.8%.) Since the biennial budget was adopted last year, the NGFO revenue […]

Studies and other interesting provisos in the supplemental transportation budget

Washington is facing considerable transportation revenue and cost challenges. As I noted in my post about the conference report for the supplemental transportation budget, the budget includes language directing the state Department of Transportation (WSDOT) to “seek consequential cost reduction opportunities” for the SR 520 West End project and requires a review of planned procurement […]

Net new policy items in the operating budget are estimated to cost less in the second biennium

As passed by the Legislature, the supplemental operating budget increases appropriations from funds subject to the outlook (NGFO) by $1.036 billion for new policy. As I noted last week, the new policy items would cost less in 2025–27 than in 2023–25. According to the outlook and summary documents, the new policy spending for 2023–25 approved […]

New policy in the operating budget conference report would increase appropriations by $1.036 billion

The conference report for the supplemental operating budget would increase 2023–25 appropriations from funds subject to the outlook (NGFO) by $2.143 billion. That includes maintenance level (the cost of continuing current services, adjusted for enrollment and inflation) changes and new policy. The maintenance level is estimated to increase by $1.107 billion. (The earlier House- and […]

Supplemental transportation budget conference report would increase appropriations by 8.1%, add language addressing cost challenges

The conference report for the supplemental transportation budget would increase appropriations from all budgeted funds by $1.099 billion (8.1%). Revised 2023–25 appropriations would be $14.714 billion, which is $24.3 million higher than the version passed by the Senate Feb. 27 and $252.0 million higher than the version passed by the House Feb. 24. (I wrote […]