The House and Senate reached agreement on supplemental operating, capital, and transportation budgets (SB 5950, SB 5949, HB 2134) in the final days before they adjourned. The adopted versions make new investments for city priorities on housing, climate change, law enforcement, and behavioral health. The final supplemental operating budget proposal is $71.9 billion and includes $4.1 billion in total reserves. The operating budget uses the $879 million balance of the Washington Rescue Plan Transition account and $250 million in federal coronavirus relief funds.

Like the initial proposals, the budgets reflect a conservative approach to the capital and transportation budgets—which could be impacted by proposed initiatives to the Legislature certified for the November ballot—until the outcome of the election is known. School construction projects funded with surplus capital gains taxes are not appropriated after November 2024. Climate change appropriations after calendar year 2024 that rely on Climate Commitment Act (CCA) funding sources are contingent and delayed until January 1, 2025. The operating budget also transfers $252 million in climate-related appropriations to the capital budget.

For more information on city budget impacts, see AWC’s budget matrix.

Operating budget (SB 5950)

• $4.4 million to eliminate the local government 25% match for Basic Law Enforcement Academy (BLEA) training.
• Does not include $10 million in grants to local governments for public safety personnel, including recruitment and retention, that was included in the Governor’s proposal.
• $150 million for public and private utilities to provide one-time bill rebates for low- and moderate-income residential electricity customers.
• $62 million to address housing and services for those who are unhoused.
• $12 million of CCA revenues to support local governments, organizations, and tribes in searching for, accessing, and reporting on federal grant awards and tax incentives.
• $1.5 million in one-time funding for technical assistance for Broadband Equity Access and Deployment (BEAD) Program grantees.
• Continues funding state-shared revenues at expected levels, but reflects a decrease in City-County Assistance for low taxbase cities and counties due to reduced REET collections and cannabis tax distributions from a reduced revenue forecast.
• $1.5 million for an extreme weather grant program.

Capital budget (SB 5949)

• No new diversions from the Public Works Assistance Account.
• $95.6 million in federal funding for Broadband Equity, Access, and Deployment Program projects.
• $127 million increase for the Housing Trust Fund.
• $45 million for clean building performance grants.
• $4 million of clean energy retrofit dollars dedicated to grants for energy audits to city-owned tier 1 & 2 buildings.
• $50 million for clean energy community decarbonization projects.
• $105 million for Community EV Charging Grants.
• $22 million for the Brian Abbott Fish Barrier Removal Board.
• $25 million for green jobs and infrastructure projects for which cities are eligible to apply.

Transportation budget (HB 2134)

• $27.2 million for Safe Routes to Schools grants.
• $18.5 million for Pedestrian and Bicycle Safety Programs and grants and $5 million to assist local jurisdictions in addressing emergent issues related to safety for pedestrians and bicyclists.
• $15 million for the Clean Alternative Fuel Vehicle Charging and Refueling Infrastructure Program.

Compare preferred provisions in the House and Senate supplemental budgets

March 1, 2024

After a busy week of budget releases and hearings, the House and Senate have begun to move their supplemental budget proposals out of their respective committees. The House Appropriations Committee passed its supplemental operating budget proposal (HB 2104) out of committee on February 21. The Senate Ways & Means Committee passed the Senate operating budget proposal (SB 5950) on February 21, and it passed out of the Senate on February 23. Once each chamber passes its version of the budgets, the final compromise will be negotiated in the last days of the legislative session.

Compare AWC’s preferred provisions in the House and Senate budget proposals and communicate city budget priorities to your legislators as we begin the final two weeks of the 2024 session.

For more information on city budget impacts, see AWC’s budget matrix.

State budget proposals invest additional funds in housing, behavioral health, and other city priorities

February 21, 2024

The recently released House and Senate supplemental budget proposals focus on housing, climate change, law enforcement, and behavioral health. The House supplemental operating budget proposal is $72 billion, while the Senate operating budget proposal is $71.7 billion.

Like the Senate budgets, the House adopts a conservative approach for climate change appropriations after calendar year 2024 that are contingent on funding sources that could be impacted by proposed initiatives to the Legislature certified for the November ballot. The House and Senate operating budgets also transfer $250 million in climate-related appropriations to the capital budget.

For more information on city budget impacts, see AWC’s budget matrix.

House operating budget (HB 2104)

• $4.4 million to eliminate the local government 25% match for Basic Law Enforcement Academy (BLEA) training.
• Does not include $10 million in grants to local governments for public safety personnel, including recruitment and retention, that was included in the Governor’s proposal.
• $150 million for public and private utilities to provide one-time bill rebates for low- and moderate-income residential electricity customers.
• $62 million to address housing and services for those who are unhoused.
• $12 million of Climate Commitment Act revenues to support local governments, organizations, and tribes in searching for, accessing, and reporting on federal grant awards and tax incentives.
• $4.2 million to implement benefits portability for the WA Cares Fund program.
• $2 million to multijurisdictional drug and gang taskforces, replacing the funds redirected from the Byrne grant program and requiring a review on funding policies.
• $500,000 to fund a study of PTSD workers’ comp claims for police and fire.
• Continues funding state-shared revenues but reflects a decrease in city-county assistance for low-tax-base cities and counties, due to reduced REET collections.

House capital budget (HB 2089)

• Diverts $7.5 million from the Public Works Assistance Account (PWAA) to PUDs for utility relocation for culvert replacement projects but does not include the $14 million diversion from the PWAA that was in the Governor’s proposed budget.
• $107 million in federal funding for Broadband Equity, Access, and Deployment Program projects.
• $153 million increase to the Housing Trust Fund.
• $83.7 million for behavioral health capacity grants and opioid recovery and care access.
• $45 million for clean building performance grants.
• $42.4 million for clean energy community decarbonization projects.
• $22 million for the Brian Abbott Fish Barrier Removal Board.
• $20 million for green jobs and infrastructure projects for which cities are eligible to apply.

House transportation budget (HB 2134)

• $27.2 million for Safe Routes to Schools grants.
• $18.5 million for Pedestrian and Bicycle Safety Programs and grants and $5 million to address emergent safety issues.
• $30 million for the Clean Alternative Fuel Vehicle Charging and Refueling Infrastructure Program.

Senate transportation budget (SB 5947)

• $27.2 million for Safe Routes to Schools grants. 
• $18.5 million for Pedestrian and Bicycle Safety Programs and grants and $5 million to address emergent safety issues.
• Funds a Joint Transportation Committee study on streamlining current WSDOT project permitting practices to accelerate project delivery, including the role of local permitting practices.
• Funds a workgroup, to include two city representatives, to review opportunities for streamlining project delivery.
• Funds a liaison position within the local program multiagency permit program to streamline project-level and programmatic permits. This is due in part to input AWC staff provided to the Legislature.

Senate and House release supplemental budget proposals following revenue forecast

February 19, 2024

The Senate supplemental budget proposals released on February 15 and February 18 invest in climate change, housing, law enforcement, and behavioral health. The House budget proposals were released on February 19 (HB 2104, HB 2089, HB 2134) and are scheduled for hearings this week.

The Senate proposes a $71.7 billion operating budget (SB 5950), which is scheduled to be heard on February 19. Changes reflect the revenue forecast’s slower predicted growth, with the latest forecast $122 million more than predicted in the November forecast. Funding for climate action from Climate Commitment Act (CCA) revenues is shifted from the operating budget to the capital budget, and some appropriations are delayed until January 1, 2025, after the election on proposed initiatives that could impact revenues.

The Senate capital budget proposal (SB 5949) was heard in the Senate Ways & Means Committee on February 15 and is scheduled to move out of the committee on February 19. The proposed capital budget is based on a revised estimate of excess revenues from the capital gains tax for school construction. It also uses a conservative approach for appropriations after calendar year 2024 that are contingent on funding sources that could be impacted by proposed initiatives to the legislature certified for the November ballot.

The Senate transportation budget (SB 5947) is expected to be introduced on February 20.

The Senate proposed budgets fund a number of city budget priorities for 2024 reflected in the budget letter we sent to budget leaders in January, but does not include $10 million to fund police officer recruitment and retention that was included in the Governor’s supplemental proposal. It does assume passage of a local-option short-term rental tax for housing (SB 5334), but not passage of the additional state real estate transfer tax on high-value properties for housing (SB 6191). Other highlights are included below. For more details on impacts for cities, watch for an update and city budget matrix in CityVoice later this week.

Senate operating budget (SB 5950)

• $4.4 million to eliminate the local government 25% match for Basic Law Enforcement Academy (BLEA) training.
• Does not include $10 million in grants to local governments for public safety personnel, including recruitment and retention, that was included in the Governor’s proposal.
• $4 million to multijurisdictional drug and gang taskforces, replacing the funds redirected from the Byrne grant program.
• Continues funding state-shared revenues but reflects a decrease in city-county assistance for low-tax-base cities and counties, due to reduced REET collections.
• $150 million for public and private utilities to provide one-time bill rebates for low- and moderate-income residential electricity customers.
• $9 million of CCA revenues to support local governments, organizations, and tribes in searching for, accessing, and reporting on federal grant awards and tax incentives.
• $5.6 million to improve Paid Family and Medical Leave (PFML) claims processing and wait times.
• $400,000 to fund a study of post-traumatic stress disorder (PTSD) workers’ comp claims for police and fire.
• $11.7 million to implement proposed changes to the WA Cares Fund program (SB 6072).

Senate capital budget (SB 5949)

• $95.5 million in federal funding for Broadband Equity, Access, and Deployment Program (BEAD) projects. Another $6 million is included for WSBO and Commerce to administer the BEAD grants and provide technical assistance to applicants.;
• Happily, this proposal does not include the $14 million diversion from the Public Works Assistance Account that appeared in the Governor’s proposed budget.
• $86 million for clean building performance, including $4 million in grant funding (to be administered by AWC) for energy audits to city-owned covered buildings.
• $42.3 million for clean energy community decarbonization projects.
• $22.2 million for the Brian Abbott Fish Barrier Removal Board.
• $20 million for green jobs and infrastructure projects, for which cities are eligible to apply.
• $111 million in additional affordable housing investments.
• $56.5 million for behavioral health community capacity grants, opioid recovery and care access, and behavioral health and substance use services.  

Dates to remember

SB 5950 is scheduled for a public hearing in the Senate Ways & Means Committee on Monday, February 19, at 4 pm.

HB 2104 is scheduled for a public hearing in the House Appropriations Committee on Monday, February 19, at 4 pm.

HB 2134 is scheduled for a public hearing in the House Transportation Committee on Monday, February 19m at 4 pm.

HB 2089 is scheduled for a public hearing in the House Capital Budget Committee on Tuesday, February 20, at 8 am.

SB 5947 is scheduled for a public hearing in the Senate Transportation Committee on Wednesday, February 21, at 3 pm.

Governor’s supplemental 2023-25 budget proposals

January 5, 2024

The Governor’s supplemental budget proposals released on December 13 invest in climate change, housing, and behavioral health. The $71.8 billion operating budget (HB 2104/SB 5950) reflects almost $2 billion in additional spending. It would invest an additional $1 billion in climate commitment act funds, use the remaining $800 million in the Washington rescue plan transition account, provide additional funding for school construction from a surplus of capital gains tax proceeds, and invest in behavioral health in part due to court mandates.

The budget funds a number of city budget priorities for 2024 reflected in the budget letter we sent to the Governor’s office last fall including $10 million to fund police officer recruitment and retention. For more details on impacts for cities, see the budget matrix.

Operating budget

• $100 million for expansion of the successful program to address homeless individuals living in state rights of way.
• $10 million in grants to local governments for public safety personnel, including recruitment and retention.
• $2.7 million to multijurisdictional drug and gang taskforces, replacing the funds redirected from the Byrne grant program.
• An additional $64 million towards mitigating the opioid and fentanyl epidemic.
• Continues funding state shared revenues but reflects a decrease in City-County Assistance for low tax base cities and counties, due to reduced REET collections.

Capital budget

(HB 2089/SB 5949)

• $95 million in federal funding for Broadband Equity, Access, and Deployment Program projects.
• Of concern is a $14 million diversion from the Public Works Assistance Account to support broadband infrastructure deployment projects. While cities support broadband infrastructure, we are concerned about further diversions from traditional infrastructure funding given local needs.
• $100 million for clean energy community decarbonization projects.
• $137 million for green jobs and infrastructure projects for which cities are eligible to apply.

Transportation budget

(HB 2134/SB 5947)

• $27.2 million for Safe Routes to Schools grants.
• $18.5 million for Pedestrian and Bicycle Safety Programs and grants.
• $20 million for the Clean Alternative Fuel Vehicle Charging and Refueling Infrastructure Program.

This proposal will be a starting point for state discussions on the budget. House and Senate proposals are not expected to be released until shortly after the February state revenue forecast. Approval of a final budget will typically be one of the last issues before the session ends March 7.

AWC encourages city officials to talk to your legislators about city supplemental budget priorities when you meet with them, in addition to AWC’s 2024 legislative priorities.

Dates to remember

HB 2104 is scheduled for a public hearing in the House Appropriations Committee on Monday, January 8 at 4 pm and Wednesday, January 10 at 4 pm.

SB 5950 is scheduled for a public hearing in the Senate Ways & Means Committee on Tuesday, January 9 at 4 pm.

HB 2134 is scheduled for a public hearing in the House Transportation Committee on Wednesday, January 10 at 4 pm.

SB 5947 is scheduled in the Senate Transportation Committee on Tuesday, January 9 at 4 pm.

HB 2089 is scheduled for a public hearing in the House Capital Budget Committee on Thursday January 11 at 1:30 pm.

SB 5949 is scheduled for a public hearing in the Senate Ways & Means Committee on Thursday, January 11 at 4 pm.