The Legislature passed supplemental operating, capital and transportation budgets just before adjourning on March 10. Overall the budgets are positive for cities with needed funding for many city priorities. AWC is disappointed with the decision to transfer funds from the Public Works Assistance Account (PWAA) to the transportation budget for the next 15 years. However, we are relieved that the sweep is lower than initially proposed.

Overall the budgets are positive for cities with needed funding for many city priorities.

The positive budget outcomes are due to cities’ quick and ongoing outreach to legislators on our budget priorities. And, thanks to your strong response to AWC’s action alerts, the final transportation budget partially reduced the devastating proposal to sweep $100 million annually from the PWAA for the next 16 years to only $57 million annually and provided some additional Transportation Improvement Board funding for city road preservation.

Here are some of the significant new investments in city priorities:

• Funding for customer utility assistance programs;
• Significant new investments in housing and homelessness assistance and prevention;
• Funding for additional Criminal Justice Training Commission Basic Law Enforcement Academy classes and an online training app;
• Significant new investment in broadband infrastructure;
• Increased investment in water infrastructure;
• Funding to reimburse cities for costs related to the Blake decision, including grants to develop therapeutic courts, funding to address costs of vacating misdemeanor convictions and paying LFOs, as well as funding for more alternative response teams;
• Increased cannabis revenue sharing with cities and counties; and
• Funding for local transportation maintenance and preservation for the Transportation Improvement Board.

The final supplemental operating budget is $64.1 billion and allocates a portion of remaining federal pandemic relief funds and new federal infrastructure funds. It also relies on increased state revenues because economic recovery remains stronger than the assumptions made during last year’s budget process. The budget includes $1.6 billion in reserves, a $2 billion one-time transfer to the transportation budget, a $650 million transfer for capital, and a new Capital Community Assistance Account to fund capital projects for community support services and infrastructure. The budget also provides $350 million for the Paid Family Leave insurance program to fund a shortfall due to increased use.

For a full list of impacts to cities, see AWC’s budget matrix and the transportation budget article.

City priorities included in each budget

Operating budget

Housing & homelessness

• $45 million for eviction prevention and rental assistance;
• $45 million for grants to transition encamped individuals from rights-of-way to permanent housing;
• $55 million in to support and retain homeless service providers;
• $8.4 million for youth housing; and
• $1 million to build capacity and development of community land trusts.

Utility assistance

• $100 million in utilityassistance for low-income households.

Funding State v. Blake decision

• $21.5 million to address costs associated with vacating misdemeanor convictions and refunding legal financial obligations (LFOs);
• $2 million in grants to establish alternative response teams; and
• $4.9 million for grants to municipal courts to develop and expand therapeutic courts.

Basic Law Enforcement Academy training

• $8.7 million to fund additional classes at the Criminal Justice Training Commission to fund a total of 19.5 classes in 2022 and 23.5 classes in 2023; and
• $823,000 to develop an online training platform.

Cannabis shared revenues

• Increases formula distribution to $45.2 million for the biennium to implement bill restructuring distributions.

GMA planning funding

• $10 million for periodic update grants including implementation of HB 1220(2021) and agency GMA policy research; and
• $7.5 million for competitive grants for cities to adopt more missing middle housing policies.

Capital budget

Restoring the Public Works Assistance Account

• Authorizes the Public Works Board to approve $120 million in Public Works Assistance Account projects but does not appropriate new funds.
• Sweeps $57 million annually for 15 years from the account and transfers to the Move Ahead WA state transportation package beginning in 2024.

Broadband

• $100 million for broadband:
  • $50 million for state broadband office grants;
  • $25 million for public works broadband grants; and
  • $25 million for CERB broadband grants.

Housing

• $113 million for Housing Trust Fund;
• $210 million for rapid housing and shelters;
• $60 million for the Apple Health and Homes rapid supportive housing program (HB 1866);
• $20 million for housing projects in rural and underserved communities;
• $10 million for previously funded rapid capital projects cost increases;
• $14.9 million for homeless youth facilities;
• $9 million for grants to local governments and PUDs for utility connections to new affordable housing projects; and
• $2 million for a rapid response community preservation pilot.

Community Economic Revitalization Board

• $40 million for CERB Capital Construction funds.

Drinking Water Assistance Account

• Additional $88.3 million.

Water Pollution Control Account

• Additional $236 million.

Weatherization in public buildings

• Additional $80 million for Weatherization Plus Health Program.

Transportation budgets

Transportation Improvement Board

• Additional $3 million for Complete Streets program; and
• $10 million for preservation and maintenance.

Safe Routes to Schools grants

• $11 million to Safe Routes to Schools grant program; and
• $9.5 million for newly selected grants.

Bicycle and pedestrian safety grants

• $13.5 million for bicycle and pedestrian safety program projects; and
• $9.5 million for newly selected grants.

Zero emissions infrastructure

• $2 million for electric vehicle infrastructure; and
• $9.8 million for the national electric vehicle program established in IIJA for electric charging network infrastructure.