The Senate- and House-proposed supplemental operating budgets for 2021-23 were released on February 21. The Senate passed an amended version of the operating budget (SB 5693)
on February 25. The House is expected to take up amendments to its version of the budget (HB 1816) soon.
Negotiations are now underway—House and Senate budget writers are crafting final versions that can pass both houses by March 10. It’s worth noting that while only the majority party drafted the operating budgets, the capital budget proposals
in both the House and Senate represent bipartisan efforts. That is a tradition as the capital budgets are often bipartisan funding projects that are important to both parties.
We wrote about the state’s positive revenue forecasts earlier this week. In light
of that, there’s a lot of good news for cities in the budget proposals, including significant investments in city priorities.
But there are also a few areas where we are urging legislators to take more action.
Read this overview and use AWC's budget comparison hot sheet for highlights and key messages to help you talk to your legislators
The Senate-proposed supplemental operating budget is $63.7 billion and allocates remaining federal pandemic relief funds and new federal infrastructure funds. It also utilizes increased state revenues because economic recovery remains stronger than the
assumptions during last year’s budget process. The Senate budget also includes $3 billion in reserves and a $2 billion one-time transfer to the transportation budget.
The House-proposed supplemental operating budget is $65 billion and uses a smaller portion of federal relief and infrastructure funds. In addition to a combined $2.2 billion in reserves and $2 billion transfer to transportation, it creates a new Capital
Community Assistance Account to fund capital projects for community support services and infrastructure and allocates $737 million in the capital budget.
Given the increases in state revenue projections, there is increasing pressure to provide tax relief without impacting the long-term stability of the state budget. The House budget assumes passage of a three-day sales tax holiday in September 2022 (
HB 2018) to provide one-time relief, and it includes a fund to mitigate sales tax losses to
local governments.
The budgets are expected to move quickly as the Legislature focuses on adjourning the legislative session on March 10. AWC encourages city officials to talk to your legislators now about city funding priorities in these budget proposals.
AWC encourages city officials to talk to your legislators now about city funding priorities in these budget proposals.
Three key messages
Overall, the budgets include key city funding priorities. Cities are thankful for investments in housing, broadband, and infrastructure.
- Thank your legislators for the following items and encourage them to tell budget leaders to keep funding for city priorities. This includes:
- Funding for utility assistance to help our residents struggling to pay their utility bills due to the pandemic;
- Historic level of funding for housing and homelessness assistance programs;
- Investing in additional Criminal Justice Training Commission classes to address the high demand in the Basic Law Enforcement Academy and other crucial law enforcement training;
- Funding for to assist cities in responding to the Blake decision, including grants for developing therapeutic courts, funding to offset the costs of vacating misdemeanor convictions and paying back LFOs, and funding for more alternative
response teams;
- Increased cannabis revenue sharing with cities and counties;
- More funding for broadband expansion; and
- Increased investment in water infrastructure.
- Ask your legislators to support critical funding needs that aren’t yet included in the proposals. This includes:
- Local transportation funding
Ask legislators not to leave city transportation needs behind. Include additional assistance to cities for preservation and maintenance in the transportation package or budgets—along
with investments into the Transportation Improvement Board. - Restoring Public Works Assistance Account
Request that legislators provide additional funding for traditional infrastructure loans through the Public Works Assistance Account. - Fish passage (culverts)
Encourage legislators to include additional funding to address local culvert replacement beyond the amounts approved last session.
- Find more details below about what’s in the budgets for cities. You can also find more information in our budget comparison matrix and budget comparison hot sheet.
City priorities included in each budget
Operating budget
Housing & homelessness
- Senate: $77.6 million for rental and utility assistance; $40.6 million for grants to transition encamped individuals from rights-of-way to permanent housing; $7.5 million to increase rental and housing subsidy and services; $8 million
for shelter and transitional housing for individuals with behavioral health conditions; and $4 million in eviction prevention services.
- House: $132 million for rental assistance; $78 million homeless service provider stipends; $58.5 million for the newly proposed Apple Health and Homes Program; $40 million for grants to local governments to increase shelter capacity;
$25 million for Landlord Mitigation Program; $20 million for grants to transition encamped individuals from rights-of-way to permanent housing; $4.3 million for consolidated homeless grant program; and $3.4 million in eviction prevention services.
Utility assistance
- Senate: $100 million in utility assistance including: $50 million in grants for public and private water, sewer, electric, and natural gas utilities; $25 million for low-income home water assistance program; and $25 million for low-income
energy assistance.
- House: $150 million for low-income utility assistance.
Funding to address city implementation of State v. Blake on drug possession
- Senate: $43 million to address resentencing, inventorying impacted cases, and refunding legal financial obligations (LFOs); and $4.9 million for grants to municipal courts to develop therapeutic courts.
- House: No funding to address resentencing, refunding LFOs, or for municipal courts to develop therapeutic court programs; but does include $3 million in grants to establish alternative response teams.
Addressing the backlog in basic law enforcement training
- Senate: $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.
- House: $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 $800,000 to fund a training app for law enforcement.
Cannabis shared revenues
- Senate: Increases formula distribution to $51.6 million assuming passage of bill restructuring distributions from a specific capped amount.
- House: No change to current capped distribution of $40 million.
Public works bidding and contracting
- Senate and House: $1.4 million for technical assistance and training to cities.
GMA planning funding
- Senate: $10 million for periodic update grants including implementation of HB 1220 (2021), and agency GMA policy research. The Senate prioritizes competitive grants over formula grants.
- House: $27 million for periodic update grants including implementation of HB 1220 (2021), HB 1099, and HB 1117. The House prioritizes formula grants over competitive grants. $7.5
million for competitive grants for cities to adopt more missing middle housing policies.
Capital budget
Restoring the Public Works Assistance Account
- Senate: No new funding included.
- House: Authorizes the Public Works Board to approve $120 million in Public Works Assistance Account projects, but doesn’t appear to actually appropriate any new funds.
Broadband
- Senate: $120 million for broadband: including $70 million for state broadband office grants; $25 million CERB broadband grants; and $25 million public works broadband grants.
- House: $100 million for broadband: including $50 million for state broadband office grants; $25 million CERB broadband grants; and $25 million public works broadband grants.
Housing
- Senate: $71 million for Housing Trust Fund; $290 million for rapid rehousing and shelters; $86 million for short term housing for people in crisis; and $25 million for low-income housing.
- House: $100 million for Housing Trust Fund; $300 million for rapid rehousing and shelters; $100 million for Apple Homes and Health for rapid permanent housing; $72 million for short term housing for people in crisis; $26.5 million
for local projects; and $15 million for homeless youth facilities.
Drinking Water Assistance Account
- Senate: Additional $66.5 million.
- House: Additional $88.3 million.
Water Pollution Control Account
- Senate: Additional $236 million.
- House: Additional $251 million.
Weatherization in public buildings
- Senate: Additional $70 million for weatherization plus health program.
- House: Additional $30 million for weatherization plus health program.
Transportation budgets
Transportation Improvement Board
- Senate and House: $3 million for complete streets program.
- House: $6.25 million for preservation and maintenance.
Safe Routes to Schools grants
- Senate and House: $6.83 million.
Bicycle and pedestrian safety grants
- Senate and House: Bicycle and pedestrian safety program projects increased to $46.1 million and adds $5.6 million for newly selected grants.
Main street preservation
- Senate: $80 million in state highway preservation and maintenance identified for highways that also function as main streets.
- House: No change to current funding.
Zero emissions infrastructure
- Senate: $13.1 million for the national electric vehicle program established in IIJA for electric charging network infrastructure.
- House: Increased to $11.9 million for electric vehicle infrastructure; $16.9 million for the national electric vehicle program established in IIJA for electric charging network infrastructure.