The House and Senate have both released their supplemental budget proposals the capital, transportation, and operating budgets.

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’s supplemental budget proposals include a variety of expenditures that impact cities. See AWC’s detailed budget matrix that compares the budgets line-by-line and read below for some of the budget highlights and how they impact cities.

What do cities need to do next? Share these key messages with your legislators:

Thank legislators for investments in housing and emergency sheltering

Cities support:

• The Senate’s proposed $66 million for a new grant program to help cities establish and operate homeless shelters
• The Senate’s $27 million increase in the Housing and Essential Needs (HEN) program to help keep Washingtonians who are too disabled to work from falling into homelessness
• Both chambers’ $15 million capital budget request for enhanced shelters
• The House’s significant $100 million additional investment in the Housing Trust Fund

Thank legislators for funding additional classes for the Basic Law Enforcement Academy (BLEA)

Both the House and Senate budget proposals include funding for two additional classes, bringing the total number per year to 21 classes for the biennium. This will help minimize the delay in getting new recruits into training.

Ask legislators to support inclusion of three important items in the final version of the supplemental budget

• Increase shared cannabis revenue
  Cities and the state have a long partnership of sharing revenue to fund critical community services. We ask that the Legislature raise the amount of cannabis revenue shared with local governments from the current $15 million per fiscal year to $20 million per fiscal year, the amount that was committed to in 2015. This is a very small increase from the approximately $200 million in cannabis revenue currently going into the state’s general fund, but it can have a big impact on local government.
  • The House proposal includes an increase of $3.5 million per year
  • The Senate proposal does not include an increase

• Provide funding to offset the new PERS 1 costs
  Both House and Senate budget proposals include a cost-of-living adjustment (COLA) for PERS 1 retirees that results in a rate increase for cities. The cost for the current biennium is estimated at $13 million for local governments, on top of the $175 million already contributed to make up the current deficit in the program.
  • The Legislature should help offset this unfunded impact to city budgets

• Support local government transportation funding
  Both the House and Senate transportation budgets reduce funding to the Transportation Improvement Board (TIB) and Freight Mobility Strategic Investment Board (FMSIB).
  • Cities prefer the Senate’s proposed transportation budget which maintains more of the existing funding for TIB and FMSIB

Read these selected budget highlights that impact cities:

Operating budget

Changes to shared revenue funds

• The House proposes an additional $3.5 million to the Marijuana Excise Tax Account

Additional BLEA classes

• Both the House and Senate provide adequate funding for two additional annual BLEA classes

Medication Assisted Treatment (MAT) study for local jails

• The House budgeted $50,000 for a MAT study with the intention of developing a statewide MAT program for implementation in local jails

Housing and homelessness

• Transfer of $100 million in the House to the capital budget for the Housing Trust Fund
• Additional funding of $15 million in each chamber for permanent supportive housing. The House also provides a new account to fund $75 million over five years
• Shelter grant funding ($66 million in Senate; $25 million in House)
• Increase in Housing and Essential Needs funding ($27 million in Senate; $20 million in House)
• Other homelessness response program funding ($9 million in House; $2 million in Senate)

Law enforcement de-escalation training program

• The House includes $1.18 million for a train-the-trainer program on de-escalation curriculum for law enforcement officers

Centralized background check system

• The House provides $400,000 in funding over two years to establish a centralized system for firearm background checks

Sexual assault kit testing

• The House budgeted $3 million to assist law enforcement agencies seek resolution to cases tied to previously unsubmitted sexual assault kits as well as provide support to survivors of sexual assault offenses

Capital budget

Housing and homelessness

• The House proposes $100 million increase for homelessness in Housing Trust Fund:
• $60 million for permanent supportive housing
• $25 million for preservation funding
• $15 million for creating enhanced shelter capacity
• $5 million for grants for cottage villages used as shelters
• The Senate proposes a $10 million increase in the Housing Trust Fund
• The Senate proposes $15 million to create enhanced shelter capacity

Remedial Action Grants

• The House proposes $32 million in new investment
• The Senate proposes $23 million in new investment

Fish-blocking culverts

• The House includes a proviso requiring the development of a comprehensive statewide culvert remediation plan that prioritizes barrier correction on a watershed basis, including non-state culverts

Community-based behavioral health grants

• The House provided an additional $27.2 million for competitive grants developing community-based behavioral health programs
• Both the House and Senate re-appropriated $20 million from an eliminated project

Public Works Trust Fund

• No additional funding provided in either chambers’ budget

Transportation budget

Fish-blocking culverts

• Both chambers provided the Governor’s requested amount for fish passage barrier correction at $275 million and retained proviso language to use a watershed approach to corrections that includes local culverts

Transportation Improvement Board (TIB)

• The House budget proposes $234.6 million in appropriation authority for TIB, including a $10 million reduction in capital spending authority and a $4.5 million reduction in the Complete Streets Program
• The Senate budget proposes $245.5 million in appropriation authority for TIB, including a $7.9 million reduction in capital spending authority and a $4.5 million reduction in the Complete Streets Program
• Unlike the House proposal, the Senate provides an additional $5 million contingent appropriation for the capital program if I-976 is found unconstitutional in its entirety

Freight Mobility Strategic Investment Board (FMSIB)

• The House budget proposes $44.4 million in appropriation authority for FMSIB, including a $7.4 million reduction in capital spending authority
• The Senate budget proposes $46.8 million in appropriation authority for FMSIB, including a $15 million reduction in capital spending authority
• Unlike the House proposal, the Senate provides an additional $10 million contingent appropriation for the capital program if I-976 is found unconstitutional in its entirety

Multimodal Transportation Account

• The Senate transfers $25 million from the operating budget into the Multimodal Transportation Account

For more details, see AWC’s detailed budget matrix that compares each budget.