On Wednesday, December 18, Governor Jay Inslee released his supplemental budget proposals for the operating, capital, and transportation budgets. The Governor is required to prepare proposed budgets by December 20 of each year.
The term “supplemental” refers to changes to the 2019-2021 biennial budgets that were adopted at the end of the 2019 legislative session.
The Legislature will take up the Governor’s budget proposals when the 2020 legislative session convenes on January 13. Typically, both the House and Senate will release their own supplemental budget proposals and work out a compromise prior to the conclusion of the session on March 12.
The most significant part of the Governor’s proposed budget is $146 million for new programs to address homelessness. The funding would come from the state’s rainy day (or reserve) fund. The proposal includes significant funding available to cities to address sheltering needs.
The Governor’s supplemental budget proposals include a variety of expenditures that impact cities. Read our more detailed budget summary chart comparing the Governor’s proposal with the enacted 2019-2021 budgets. And see below for a few highlights.
Operating budget
Reducing homelessness
- $66 million is proposed for a new grant program to help cities establish and operate temporary homeless shelters
- $30 million in capital funding is also provided for new or upgraded homeless shelters
- $4 million is provided for encampment cleanup costs
Minor changes to some shared revenue funds (due to revised forecasts)
- Additional $2.6 million for the Liquor Excise Tax Account
- Decrease of $1.8 million to Municipal Criminal Justice Assistance Account
- Additional $2.4 million for City-County Assistance Account
Additional funding for gun violence intervention
- Budget gives priority to Yakima County and south King County
- $600,000 specifically for law enforcement agencies to implement strategies to address high rates of gun violence within the community
- $800,000 to the Office of Juvenile Justice to establish a grant program for evidence-based services targeting youth who are at high risk to carry out gun violence within the community
Increase in state employer contributions to PERS
- Department of Retirement Systems (DRS) is requesting an employer contribution increase to support a one-time 1.5% permanent pension increase for PERS 1
- The budget specifies a rate increase for state employer contributions that would likely apply to all PERS employers
Transportation budget
- The Governor’s proposal responds to I-976 by delaying spending on some projects and programs, which saves approximately $240 million and raises $150 million in new bond funding
- General city priorities remain largely intact: the Safe Routes to School grant program is maintained, the Bicycle and Pedestrian Safety grant program is maintained, and the Freight Mobility Strategic Investment Board funding is restored
- However, the Transportation Improvement Board’s Complete Streets grant program is reduced by $4.4 million
Capital budget
- No significant changes proposed in the Governor’s 2020 supplemental capital budget