2018 LEGISLATIVE SESSION & SUPPLEMENTAL BUDGET Jed Bradley Senior Policy Analyst Office of Planning & Budgeting

SUPPLEMENTAL SESSIONS & BUDGETS Supplemental sessions last 60 days, with the possibility of one or more 30-day special sessions Supplemental budgets are intended to accommodate: Technical corrections Changes in expected Near General Fund- State (NGF-S) revenue from revenue forecasts Changes in legally-mandated caseloads or workloads All bills from the previous session are automatically reintroduced (unless passed) Members also can (and do) submit new bills -Supplemental sessions last 60 days with the possibility of one or more 30-day special sessions. -In the 2017 session the legislature passed a two year budget funding government agencies through mid-2019. Legislators will now be working toward a supplemental budget. Supplemental budgets are intended to amend the biennial budget to accommodate: Technical corrections Changes in expected Near General Fund- State (NGF-S) revenue from revenue forecasts AND Changes in legally-mandated caseloads or workloads -All bills from the previous session are automatically reintroduced (unless passed) -Members also can (and do) submit new bills

2018 SESSION & SUPPLEMENTAL BUDGET REVENUE FORECAST & BUDGET OUTLOOK The November revenue forecast predicted a slight increase in expected revenue for the current biennium Total available GF-S revenue in 2017-19 is expected to be $43.6 billion, 13.7 percent more than 2015-17. Higher education accounts for 8.8 percent of GF-S spending McCleary update: The 2017-19 budget increased K-12 spending by $7.3 billion over four years, but the Supreme Court ruled that the state still hasn’t satisfied obligations -The November revenue forecast predicted a slight increase in revenue to be collected during the current biennium, which is now predicted to be roughly $43.6 billion. -Higher education accounts for 8.8 percent of GF-S spending -McCleary update: The 2017-19 budget increased K-12 spending by $7.3 billion over four years, but the Supreme Court ruled that the state still hasn’t satisfied obligations -Overall, this is not promising for any additional funding for higher education in the supplemental budget.

GOVERNOR INSLEE’S PROPOSED SUPPLEMENTAL BUDGETS Governor Inslee released his 2018 Supplemental Budget proposals on December 14 No notable increase in funding for higher education, but about $1 billion in additional funding for K-12 The proposal did not fund our request to modify the “fund split” between state funding and tuition revenue for new expenses Includes a couple small increases for UW: Additional funding for computer science enrollments Operations funding for buildings coming online in 2017-19 Capital budget: similar to the final bipartisan proposal that was not passed due to a disagreement over water rights. Includes funding for the Burke Museum, seismic upgrades, Health Sciences T-Wing, Population Health Sciences Building, CAMCET, capital repair, Parrington Hall, and growth at Bothell and Tacoma. -Governor Inslee released his 2018 Supplemental Budget proposals on December 14 -No notable increase in funding for higher education, but nearly $1 billion in additional funding for K-12 -The Governor’s proposal did not fund our request to modify the “fund split” between state funding and tuition revenue for new expenses, which Joe will talk about a bit more later Includes a couple small increases for UW: -Additional funding for computer science enrollments -Operations funding for new buildings -Capital budget: similar to the final bipartisan proposal that was not passed due to a disagreement over water rights. Includes funding for the Burke Museum, seismic upgrades to unreinforced masonry buildings, Health Sciences T-Wing, Population Health Sciences Building, Center for Advanced Materials and Clean Energy Technologies, capital repair, growth at Bothell and Tacoma, and Parrington Hall

AS A REMINDER… Leadership in the House and Senate will release their own budget proposals over the course of session OPB will review budgets as they are released and will produce budget briefs for all major budget proposals Stay tuned to session related emails and the OPBlog (depts.washington.edu/opbblog/) for updates regarding: Budget proposals Revenue forecasts As a reminder… -Leadership in the House and Senate will release their own budget proposals over the course of session, which could start to happen within a couple months. -OPB will review budgets as they are released and will produce budget briefs for all major budget proposals. We post budget briefs on our website here. Our brief for the Governor’s budgets is already posted! -Finally, please stay tuned to session related emails and the OPBlog (which is here) (depts.washington.edu/opbblog/) for updates regarding: • Budget proposals • Revenue forecasts