2023 Session Budget Preview
This document outlines the budget preview for the 2023 session prepared for the Interbranch Advisory Committee. It includes important budget coordinators, submission timelines, funding breakdowns, and budget development processes.
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2023 Session Budget Preview Prepared for the Interbranch Advisory Committee December 12, 2022 JAMES KETTEL, SENATE WAYS & MEANS, BUDGET COORDINATOR MARY MULHOLLAND, HOUSE APPROPRIATIONS, BUDGET COORDINATOR 1 DECEMBER 12, 2022 OFFICE OF PROGRAM RESEARCH & SENATE COMMITTEE SERVICES
2023-25 Biennium July 1 December 31 2022 January 1- June 30 2023 July 1 December 31 2023 July 1 - December 31 2024 January 1- June 30 2025 January 1- June 30 2024 FY 2023 FY 2024 FY 2025 Agencies submit 2024 budget requests Agencies submit 2025 budget requests Agencies submit 2023 budget requests The Governor submits 2023- 25 biennial and 2023 supplemental budget proposals The Governor submits 2024 supplemental budget proposal The Governor submits 2025-27 biennial and 2025 supplemental budget proposals 2025 Session: Legislature adopts the 2025-27 biennial & 2025 Supplemental budgets 2024 Session: Legislature adopts 2024 Supplemental budget 2023 Session: Legislature adopts the 2023-25 biennial & 2023 Supplemental budget *Agencies develop budget proposals over the summer and submit them in September. Judicial and legislative agencies budget requests are non-revisable. The Governor s office develops budget proposals in fall and makes proposals public in December. The Legislature develops budgets during session(s) and sends to the Governor. 2 DECEMBER 12, 2022 OFFICE OF PROGRAM RESEARCH & SENATE COMMITTEE SERVICES
($ in millions) $140,000 Note: Near General Fund-Outlook (NGF-O) is the term used to describe the state funds subject to the four-year balanced operating budget requirement. Operating includes debt service paid on general obligation bonds in the Capital budget. $130,000 Other, $25,000 NGF-O, $64,125 $120,000 $110,000 Federal, $41,789 $100,000 $90,000 $80,000 $70,000 $130,914 $60,000 Operating $5,825 $50,000 Capital $6,513 Re-Approps $4,511 $40,000 New Approps $7,796 $30,000 $20,000 $10,000 $12,338 $12,306 $0 Operating Transportation Capital 3 DECEMBER 12, 2022 OFFICE OF PROGRAM RESEARCH & SENATE COMMITTEE SERVICES
Although the Legislature spends the majority of its time on funds subject to the four-year balanced budget requirement, approximately half of operating budget spending is from other accounts. Federal Funds, $41.8 Billion Tuition, Grants, Other Higher Ed Funds, $11.5 Billion** NGF-O*, $64.1 Billion Other Funds, $13.4 Billion 2021-23 (Incl. 2022 Supp) Total Budgeted Funds = $130.9 Billion * Includes funds subject to the Outlook ** Includes funds 143, 145, 148, 149, and 505 4 DECEMBER 12, 2022 OFFICE OF PROGRAM RESEARCH & SENATE COMMITTEE SERVICES
$64.1 billion NGF-O Carry forward 2021 and 2022 Legislative budget decisions into the next biennium.* Take current appropriations and: Biennialize ongoing appropriations and reductions. Remove one-time appropriations and reductions. Maintenance level adjustments:* Entitlement programs - Caseload forecasts and per cap or formula driven costs. Entitlement and non-entitlement programs MANDATORY cost increases or decreases. Note: Portions of many large entitlement programs are effectively zero-based as part of this process. 2023-25 base or maintenance level budget 2021-23 Budget *As a technical, objective process, legislative fiscal staff have been traditionally tasked with performing a very detailed analysis and review of these items. **Caseload forecasts are prepared and adopted by the Caseload Forecast Council (typically using a collaborative process). DECEMBER 12, 2022 OFFICE OF PROGRAM RESEARCH & SENATE COMMITTEE SERVICES 5
Any changes to the existing base budget (which is the cost of continuing ongoing services) are policy level decisions. Creation of new programs Enhancement of existing programs Elimination of existing programs Reduction of existing programs Other non-technical funding decisions Note: Vendor rate increases (other than some in managed care programs), employee health benefits, employee COLAs, collective bargaining agreements, and continuation of multi-biennium information technology projects are always policy level items. 2023-25 base or maintenance level budget DECEMBER 12, 2022 OFFICE OF PROGRAM RESEARCH & SENATE COMMITTEE SERVICES 6
Revenue = Positive forecasts in June and November up about $3B Maintenance Level (ML) = Larger than usual caseload, per capita costs, inflation Although, revenue should be sufficient to cover costs through ML Policy Level (PL) = Examples of issues likely to be debated in 2023 Session Collective Bargaining and Compensation Adjustments Vendor Rate Increases Modifying recent issues 988, Blake v WA, OneWA, Rainier, Housing, WSH Increasing or decreasing resources Other Issues IIJA, Capital Gains, Public Health, WRPTA, CSFRF The 4-Year Balanced Budget Requirement = Statute requires the Legislature to balance General Fund-State and three closely related accounts (collectively known as Near General Fund-Outlook or NGF-O) over a four-year period rather than just the two-year biennium. The Outlook is a tool that is prepared to comply with this requirement by projecting the impact of budget decisions in the 2023-25 biennium onto the 2025-27 biennium. This means that in the 2023 session, the Legislature is tasked with enacting a budget that balances over both the 2023-25 biennium and 2025-27 biennium for NGF-O. 7 DECEMBER 12, 2022 OFFICE OF PROGRAM RESEARCH & SENATE COMMITTEE SERVICES
2023 Session: Agency Request - Issues with a relatively large fiscal impact Low Income Healthcare Vendor Rate Increases Savings Restoration Electronic Health Records 988 Suicide Prevention Hotline Durable Medical Equipment Long Term Care & DD Vendor Rate Increases Aging Caregivers Direct Care Workforce Acute Hospital Length of Stay Natural Resources Drought Preparedness & Response Biodiversity Restoration Wildfire Preparedness & Response Invasive Species Other Human Services Homelessness & Housing Cash Grant Alignment Public Health Infrastructure Refugee Assistance Mental Health Judicial Branch Electronic Health Records Violence Reduction in State Hospitals Timely Competency Evaluation 988 Suicide Prevention Hotline State v Blake Vendor Rate Increases IT Projects + Infrastructure Therapeutic Court Funding Public Defense Innovation Grants Higher Education Children Youth & Families Vendor Rate Increases Caregiver Placement Supports Housing Access & Supports D.S. Compliance WA College Grant Career & College Pathways High Demand Enrollments UW Medicine Safety Net FAFSA Completion Other IT projects (multiple agencies) COVID-19 Response (multiple agencies) Clean Energy Fund Small Business Assistance Working Families Tax Credit Adjustment Cybersecurity Workers Compensation Corrections & Criminal Justice Electronic Health Records Community Custody Patient Care Addiction Care Delivery Restrictive Housing Reform K12 Increasing School Staff Teacher Residency Program Teacher Compensation Special Education 8 DECEMBER 12, 2022 OFFICE OF PROGRAM RESEARCH & SENATE COMMITTEE SERVICES
Questions? 9 DECEMBER 12, 2022 OFFICE OF PROGRAM RESEARCH & SENATE COMMITTEE SERVICES
