New major state spending unlikely

Legislature’s lead budget writers offer clues about what’s next for state spending

  • By Bill Lucia Washington State Standard
  • Saturday, January 6, 2024 1:30am
  • News

By Bill Lucia

Washington State Standard

OLYMPIA — Heading into her first session as the chair of the budget-writing Ways and Means Committee, state Sen. June Robinson indicated she would push back on legislation that creates significant new spending, even if the proposals come from her fellow Democrats.

“I know my members have a lot of additional ideas that they would like to see funded,” she said as she discussed the outlook for the session during a panel with other budget committee leaders on Thursday.

“I just don’t think we’re going to be able to do a lot of additional, new initiatives.”

Robinson, of Everett, suggested that while state revenue is solid, lawmakers should tend to current financial obligations before creating new ones.

The big picture

Washington lawmakers will convene Monday for 60 days. During that time, they will craft a supplemental budget, making adjustments to the state’s current two-year spending plan.

The state’s balance sheet is in relatively good shape. Revenue is up roughly $1.2 billion since lawmakers adopted the budget in April, with projected tax collections for the budget, which runs through June 30, 2025, approaching $66.9 billion, according to a November revenue forecast.

Not included in those figures is money raised from the auction of carbon allowances under the state’s cap-and-trade program, which has so far generated close to $1.8 billion.

There is, however, mounting pressure due to rising costs for transportation projects, including the court-ordered replacement of road culverts that block fish and pricey upgrades to ferries.

These expenses come atop heavy spending in recent years to address problems like homelessness and the state’s affordable housing shortfall and its lack of mental health beds.

Meanwhile, Republican-backed ballot measures threaten to overturn the cap-and-trade program and a new tax on capital gains. The capital gains tax is also facing a challenge at the U.S. Supreme Court. The court could decide in the coming days whether to hear the case.

The capital gains tax in its first year raised nearly $900 million, money that will go toward early learning and child care programs, and to school construction and renovation projects.

Cap-and-trade revenue is bound for programs to cut air pollution, prepare the state to better withstand climate change, and expand the use of clean energy technology.

If either of those income streams are cut off, it would leave sizable holes in the state’s budget that lawmakers would have to grapple with in future years.

“Budgeting is always a risk assessment,” said Rep. Timm Ormsby, D-Spokane, who chairs the House Appropriations Committee, adding that ballot measures like those targeting cap-and-trade and the capital gains tax are “yet another risk that will have to be factored in.”

Ormsby ticked off a list of familiar budget priorities for his caucus: housing, child care, and behavioral health programs, which include mental health and addiction services.

Robinson emphasized, as she has previously, that behavioral health is a priority issue for her. The state already has plans to spend nearly $1.3 billion on expanding the availability of mental health beds, with most of the money going to upgrades at Western State Hospital.

Washington is also under a court-monitored settlement agreement that calls for it to reduce the amount of time people in jail are waiting to get mental health treatment and evaluations before they can be deemed competent to stand trial.

Robinson said she’d like to see more spending focused on getting people help before they end up in psychiatric hospitals. “Making sure people get services in their communities, in their homes, when they still have a support network around them,” she said.

The Republican view

Rep. Chris Corry, R-Yakima and the ranking member on the House Appropriations Committee, said he would like to see tax relief for state residents, but acknowledged this was unlikely. He also raised concerns about how much the state is spending.

“It’s good that revenues are going up,” he said. “I worry about our ability to continue budgeting with this idea that we’re going to keep growing forever.”

“The state has plenty of money,” Corry added. “We have a lot of challenges and the answer isn’t always just take more money from people and I’ll be pushing back on that in any way I can.”

Sen. Lynda Wilson, R-Vancouver, who is the top Republican on Senate Ways and Means, suggested that lawmakers should consider possible effects the ballot initiatives could have on the budget if voters approve the measures, and she registered her opposition to new taxes and higher spending.

Wilson said she would only agree to more spending in response to an emergency, or if it was for something that couldn’t easily be pushed off until next year. “Our budget is fine,” she said.

________

Bill Lucia writes for the Washington State Standard (https://washington statestandard.com), an independent, nonprofit news organization that produces original reporting on policy and politics.

More in News

Search and rescue teams locate deceased man

A deceased man was located following search and rescue… Continue reading

ODT near Hill Street reopens after landslide

The Olympic Discovery Trail between Hill Street and Marine… Continue reading

Justice Loftus holds up a dinosaur mask he received at the Winter Wishes assembly. He said he plans to use it to play with his younger brother. (Matthew Nash/Olympic Peninsula News Group)
Sequim High School assembly grants students’ requests

Annual assembly provides gifts via leadership class

Deb Carlson, president of the Sequim-Dungeness Hospital Guild, presents a check for $9,585 to Deputy Police Chief John Southard and City Manager Matt Huish to help purchase three automated external defibrillators (AEDs) for three new vehicles and new AED pads and first aid supplies for the full fleet. (Matthew Nash/Olympic Peninsula News Group)
Guild marks $2.5M in support for medical needs

Shop donations reopen in February, sales in March

Marylaura Ramponi stands by an excavator donated for geotechnical work at Sequim School District by Jamestown Excavating. She donated $1 million for the naming rights of the Ramponi Center for Technical Excellence, a career and technical education building that will be built in conjunction with new buildings at Sequim High School. (Matthew Nash/Olympic Peninsula News Group)
Progress begins on CTE building

Ramponi Center could be done by early 2028

Weekly flight operations scheduled

There will be field carrier landing practice operations for aircraft… Continue reading

Volunteers serve up a full breakfast on Christmas morning, for the Third Community Breakfast at the Fred Lewis Scout Cabin in Port Townsend put on by the Reach Out Community Organization, a homeless advocacy program. A full breakfast was served to about 150 people during the morning. On the serving line are, from the back, Rose Maerone, Marie France and Susan Papps. (Steve Mullensky/for Peninsula Daily News)
Festive breakfast

Volunteers serve up a full breakfast on Christmas morning, for the Third… Continue reading

Growler analysis report complete

Environmental Impact Statement and recommendations released

x
Home Fund subsidizes rent at Woodley Place

Bayside renovates 17 units at former hotel for supportive housing

To honor outgoing Hospital Commission Chair Jill Buhler Rienstra, Jefferson Healthcare dedicated a courtyard to her in December. Buhler Rienstra stands on the left, Jefferson Healthcare Chief Executive Officer Mike Glenn on the right.
Thirty-year hospital commissioner retires

Her career saw the hospital grow, improve

EYE ON THE PENINSULA: County boards to meet next week

The Jefferson and Clallam boards of county commissioners and the city of… Continue reading

Four members elected to Port Angeles chamber board

Four people have been elected to the Port Angeles… Continue reading