Legislative update 02/25: House, Senate release proposed budgets

By Diana Carlen
WAWG Lobbyist

Tuesday marked the 44th day of the 2020 Legislative Session. On Wednesday, Feb. 19, the Legislature reached a milestone—the deadline to pass bills out of the house of origin (House Bills must be voted out of the House, and Senate Bills must be voted out of the Senate). Bills that were not voted on are considered dead and ineligible to move forward this year unless considered necessary to implement the budget (NTIB). It is important to note, bills are never truly dead because their content can be amended into other legislation or rare procedural moves can occur to keep them alive.

On Thursday, Feb. 20, the legislature began hearing bills from the opposite chamber. Bills are assigned to committees and have the same type of work sessions, public hearings, and debate as in the original chamber. The next legislative deadline is Feb. 28 in which all bills must pass out of their policy committee to remain alive.

Revenue forecast and budgets  

During a short session, the Legislature typically adopts supplemental budgets to make adjustments and additions to the previous two-year plan. Four times a year, the Washington State Economic and Revenue Forecast Council adopts a bipartisan revenue forecast that is then used to build and adjust the state operating budget.

On Feb. 19, the Economic and Revenue Forecast Council released updated forecasts bringing the budget writers good news—the state is expected to collect an additional $606 million in state revenues in the current biennium (2019-2021). This means that there is around $1.5 billion in additional revenues since the end of the 2019 session. Around half of the projected increase with this forecast is due to one-time increased estate tax receipts, and the rest is due to updated data on property tax assessments, increased sales tax revenues, and slight increases in B&O receipts.

Senate and House release 2020 supplemental budget proposals

On Feb. 24, the House and Senate have both released their supplemental budget proposals the capital, transportation and operating budgets. The term “supplemental” refers to adjustments to the 2019-2021 biennial budgets that were adopted at the end of the 2019 Legislative Session.

Some highlights of the Senate and House Proposals are provided below:

SENATE PROPOSAL

  • Climate Resiliency – $100 million for the Office of Financial Management to consult with state natural resource agencies to prioritize actions and investments that mitigate the effects of climate change and strength the resiliency of communities and the natural environment. Recommended prioritized list is due to the Governor and Legislature by Nov. 1 to be considered for appropriation in 2021-23.
  • Fire Suppression – $20.6 million is provided to DNR for fire suppression costs.
  • State Trust Lands Study – $80,000 is provided for the Joint Legislative Audit & Review Committee (JLARC) to conduct a study of the inventory of the state trust lands managed by DNR. JLARC must issue a preliminary report to the legislature by July 1, 2021, with a final report by Dec. 1, 2021.
  • Growth Management Workgroup – $350,000 is provided for a workgroup to review and make recommendations for legislation to update the Growth Management Act in light of the recent Ruckelshaus Center report. The work group must report on its activities and recommendations by Dec. 1, 2020.
  • Statewide Emissions Reduction Strategies – $200,000 is provided to Commerce to develop a comprehensive analysis of statewide emissions reduction strategies.
  • Farm Internship Program Extension – $176,000 is provided to Labor & Industries to implement ESB 6421 which extends the farm internship extension program.
  • Clean Transportation Fuel Standards – $ 1,467,000 is provided for Ecology to implement the provisions of E2SHB 1110 (low carbon fuel standard).
  • Sustainable Farms and Fields – $99,000 is provided to the State Conservation Commission and $126,000 to WSDA implement the provisions of SSB 5947 (Sustainable Farms and Fields).
  • WA Food Policy Forum – $59,000 is provided to the State Conservation Commission to implement the provisions of SSB 6091 (Continuing Work of WA Food Policy Forum).
  • Soil Health Initiative – $55,000 is provided to the State Conservation Commission and $200,00 to WSDA to implement the provisions of SSB 6306 (Soil Health Initiative).
  • Conservation District Support – $332,000 is provided to increase the capacity of conservation districts to assist landowners.
  • Hatchery Feasibility Study – $750,000 is provided for DFW to research and assess the feasibility of a pilot program that models the state of Alaska fish hatchery policies to increase production of salmon.
  • Chlorpyrifos – $299,000 is provided to WSDA to implement the provisions of E2SSB 6518.
  • Water Banking Work Group – funding is provided for Ecology to convene a work group of affected entities to study the design and use of the state water trust, water banking and water transfers. Ecology must present its findings by Dec. 1, 2020.

HOUSE PROPOSAL

  • Climate Change Risks – $2,339,000 is provided for Ecology to adopt rules to strengthen and standardize the consideration of climate change risks, vulnerability and greenhouse gas emissions in environmental assessments for major projects with significant environmental impacts.
  • Clean Air Rule – “sufficient” funding is provided for Ecology to implement SHB 2892 (greenhouse gas emissions).
  • Greenhouse Gas Emission Standards – funding is provided to various state agencies to implement 2SHB 2311 increasing the state’s greenhouse gas emission standards. (greenhouse gas emissions).
  • Clean Water Act Certifications – $654,000 is provided for additional staff to process clean water act certifications in the event that a 60-day processing is required by the Army Corps of Engineers.
  • Fire Suppression – $29.3 million is provided for the costs of fire suppression for DNR.
  • Statewide Emissions Reduction Strategies – $601,748 is provided to Commerce to develop a comprehensive analysis of statewide emissions reduction strategies. Senate also provides this funding, but at a lower level.
  • C-PACER – $46,000 is provided to Commerce to implement E2SHB 2405 (Commercial Property/Clean Energy).
  • Net Ecological Gain – $256,000 is provided to the Office of Financial Management to submit a report to the legislature on how to incorporate a net ecological gain standard into state land use, development and environmental laws.