March 9, 2022
The supplemental operating budget conference report would increase 2021–23 appropriations from funds subject to the outlook (NGFO) by $5.071 billion. Revised 2021–23 NGFO appropriations would be $64.138 billion. This is an increase of 8.6% over the enacted 2021–23 biennial budget and an increase of 24.3% over 2019–21 spending. Appropriations in the conference report are $503.9 million higher than in the Senate-passed budget and $1.170 billion lower than in the House-passed budget.
The conference report would leave an unrestricted NGFO ending balance of $348 million in 2023–25. It would make just the constitutionally-required 1% transfer to the budget stabilization account (BSA, or the rainy day fund). The BSA ending balance would be $1.246 billion in 2023–25.
The proposal would transfer $1.1 billion in 2021–23 from the NGFO to the Washington rescue plan transition account (WRPTA), and the outlook assumes that another $500.0 million would be transferred to the WRPTA in 2023–25. (The Senate-passed budget would have transferred $2.0 billion over four years to the WRPTA; the House would have transferred nothing.) As I wrote earlier today, it would be better to keep reserves in the BSA.
Revenue legislation would reduce NGFO revenues by $64.3 million in 2021–23 and by $450.9 million in 2023–25. The House-passed budget’s sales tax holiday is not included. The largest tax cut is $113.1 million over the outlook period for the small business B&O tax credit (SB 5980). The proposal includes HB 1846, a sales and use tax exemption for data centers.Categories: Budget.