Friends
Committee on Washington
State
Public Policy
A Quaker Organization
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Friends
Committee on Washington
State |
WAC Advocacy Alert
December 20, 2001
Washington State's Budget Process
This issue of the Advocacy Alert will provide a brief overview of Washington State’s budget process. Some of
the information included in this issue was taken from “A Description of Washington State’s Budget Process”
published by the Office of Financial Management. That document as well as details of current budget proposals
are available on-line at www.ofm.wa.gov/budget
. Each year, many of our advocacy alerts focus on details of our
state budget, especially funding for human service programs. This is an important element of our advocacy
work. We hope this short primer is a useful tool for all our friends and advocates around the state.
Why should people of faith care about the state budget?
Our state budget is the moral document by which we, as a community, establish our priorities. As people of
faith, we believe that we must prioritize the needs of the vulnerable and the poor. Our budget should
reflect these values.
The Process
Like 21 other states, Washington enacts budgets for a 2-year cycle, beginning on July 1 of each odd-numbered
year. The budget approved for the 2001-03 Biennium remains in effect from July 1, 2001 through June 30,
2003. By law, the Governor must propose a biennial budget in December, the month before the Legislature
convenes in regular session. The biennial budget can be modified in any legislative session through changes to
the original appropriations. It has become common for the Legislature to enact annual revisions to state’s
biennial budget. These revisions are referred to as supplemental budgets.
After the Governor submits his budget to the legislature, they have the option of passing his budget or crafting
their own. It is commonplace, for legislators to use the Governor’s budget as a starting point, but to develop
their own budget proposals.
The Players
State Agencies are responsible for developing budget estimates and submitting proposals to the Governor.
The Office of Financial Management (OFM) works to coordinate agency budget submission and prepares the
Governor’s budget.
The Governor recommends a budget to the legislature that reflects the executive policy priorities.
Through appropriation bills, the Legislature mandates the amount of money that each state agency can spend,
and also can direct the agencies where and how to spend it.
The Economic and Revenue Forecast Council releases a quarterly official forecast of state revenues that will
be available to support estimated expenditures.
Sources of State Revenue
Washington receives most of its revenue from taxes, licenses, permits and fees, and federal grants. The list
below shows the major revenue sources collected from in the state for the General Fund expenditures in the
current biennium.
Retail Sales and Use Tax: 56.4%
Business and Occupation Tax: 18.7%
Property Tax: 12.9%
Other: 12.0% (this includes revenue from real estate excise taxes, liquor sales, tobacco sales, lottery
proceeds, and insurance premiums).
Source: Office of Financial Management, June 2001
Size and Distribution of the State Budget
The state’s current operating budget for the 2001-03 biennium (from all sources) is $45.2 billion, this includes
state and federal dollars. Slightly more than half— approximately $22.8 billion —of the state operating budget
is supported by state tax revenues and reserves. This is known as the General Fund State (GF-S) budget. The
following shows the distribution of General Fund State dollars:
K-12 Schools: 43.4% Higher Education: 12.3% Human Services: 18.9%
Medical Assistance: 9.4% Corrections: 4.3% Natural Resources: 1.6%
General Government: 2.6% Other*: 7.5%
*this includes debt service, pensions, other education, transportation
Human Services
This portion of the budget provides vital services to the elderly, the sick, the disabled, the working poor and
low-income and to children. It is this part of the budget that we often pay the most attention to. When cuts need
to be made, the Human Services budget often must shoulder a disproportionate share of the reductions in
funding. We believe that this part of the budget is one of the most critical as it serves some of our most
vulnerable. About one in five residents are served by the Department of Social and Health Services each year.
That is equivalent to 1.3 million people a year. DSHS has several agencies including Mental Health,
Developmental Disabilities, Alcohol and Substance Abuse, Vocational Rehabilitation, Medical Assistance,
Children’s Administration, Economic Services, Long-Term Care, Juvenile Rehabilitation and Vocational
Rehabilitation. DSHS also contracts with many local non-profits and organizations to provide services, such as
Catholic Community Services. These organizations are known as vendors.
Spending Limit (I-601)
Passed by voters in 1993, Initiative 601 has severely limited the state budget’s ability to keep up with the cost
of maintaining expenditures and programs.
I-601 imposed a spending limit, which is based on the previous year’s expenditures and is adjusted only by a
“fiscal growth factor.” This is based on a 3-year average of inflation plus population change. Temporary
expenditures above the limit are allowed after there is a declaration of an emergency and a 2/3rds vote of the
legislature. Any revenues that are collected above the expenditure limit are collected in an emergency reserve
account. In order to spend money out of the reserve account, there must be a 2/3rds vote of the legislature.
Why we have a crisis?
We currently have a $1.25 billion deficit for this current fiscal year. This means that in order to provide the level
of services in the 2001-03 budget , we either need to raise an additional $1.25 billion or reduce the budget by
the same amount or some combination.
The main reasons that we have this serious deficit are:
1) A $813 million drop in revenue. Because our tax
system is so heavily dependent on the sales tax, we often have budget shortfalls when the economy slows. So
when we have the highest demand for services, we have less of an ability to respond.
2) Passage of several Initiatives have reduced revenues and increased spending.
3) Escalating health care costs. In one year, health care costs increased by nearly 14%.
4) Changing state demographics. Our state population now has more seniors and more children. Which means
we have seen an increase in K-12 enrollment and an increase in state services for the elderly.
How Can You Make a Difference?
It is critical for our state lawmakers to hear directly from you about the budget and the priorities that you feel are
most important. The WAC now has nearly 800 individuals that are a part of our Ecumenical Legislative
Advocacy Network (ELAN). You all receive monthly/weekly alerts and are invited to take action. Your actions
make a difference. There are several ways to be involved. You can:
Write Letters, Make phone call or send e-mails to your elected officials and tell them what you want them
to support (or not support).
You can attend Church Advocacy Day (February 6, 2002) and visit your legislator.
You can host a legislative forum at your church.
You can talk to your pastor about supporting an “Advocacy Sunday” that focuses on social justice and the
responsibilities of providing for the common good.
You can organize a “Take Five” table at your church and invite church members to write letters on a
specific social justice issue.
You can write a letter to the editor to express your views about a specific social justice issue.
You can share the Advocacy Alert with other members of your church or community.
And remember, you can always call us here at the WAC if you have questions or need more information.
Sara Merten (206) 625-9790 or e-mail at merten@thewac.org
3 ways to receive the WAC Advocacy ALERT:
Via the US Post Office
Via email
Via fax
If you are reading this, then of course, you are on our e-mail list. If you prefer to get the information another way, please call or email
us to let us know.
206.625.9790 or wac@thewac.org
TAKE FIVE
ISSUE: On December 18, 2002 Governor Locke released his budget. While not nearly as bad as
some advocates expected, his budget proposal still includes $566 million in cuts, $246 million of
which come from the Department of Social and Health Services’ Budget. Remember that these are
only the Governor's proposals and the next steps in the budget writing process will be up to the
legislature.
Some of the program cuts include:
The Women Infants and Children’s Supplemental Food Program (WIC) reduction of $423,000; The
WIC Farmers’ Market Nutrition Program is eliminated; Public Health Nurse Program is eliminated;
Family Reconciliation Services is cut by $1.6 million; Juvenile Violence Prevention Grants are
eliminated; and the inflationary increases to DSHS vendors (called a COLA) is delayed by 2 months
which will cost non-profit and local agencies thousands of dollars.
ACTION: Call your Representatives and Senator and ask that they support a budget that protects
our state’s vital social services. Legislative Hotline: 800-562-6000.