Governor Inslee’s proposed supplemental budgets for 2021-23 were released on December 16 and are scheduled for hearings on January 10 and 11. The budgets reflect the state’s continued economic growth in the wake of the pandemic and incorporate several city priorities. The proposed supplemental operating budget is $61.8 billion, which includes new federal funding to several new programs and priorities, as well as increased state revenue projections from the state’s continued economic growth above last year’s revenue forecast.

Overall, the Governor’s supplemental budget includes several key funding priorities for cities:

• Continued investments in infrastructure
• Assistance for utility bill arrearages
• Affordable housing
• Funding to address backlogs in basic law enforcement training
• Homelessness response.

However, there are also several areas of concern, including support for a statewide preemption of local authority on housing density, lack of new investment in local culvert replacement, no additional funding for the Public Works Assistance Account, and no direct assistance to cities for implementation of the State v. Blake decision.

While the Governor’s budget proposals serve as a starting point for the discussion, the House and Senate will draft their versions later this session, likely releasing them after the next state revenue forecast in February.

For more detail on the Governor’s budget proposals, see AWC’s budget article and budget matrix with a summary of impacts on cities.

Dates to remember

HB 1816, the Governor’s supplemental operating budget proposal, is scheduled for hearing in the House Appropriations Committee on Monday, January 10 at 3:30 pm. Its companion, SB 5693, is scheduled for hearing in the Senate Ways & Means Committee on Tuesday, January 11, at 4 pm.