The Senate Ways & Means Committee chair’s operating budget proposal would appropriate $59.215 billion in 2021–23 from funds subject to the outlook (NGFO). For the 2021 supplemental to the 2019–21 operating budget, the proposal would reduce appropriations by 1.9% (mainly due to the reduced cost of continuing current services), for a revised 2019–21 appropriations level of $52.701 billion. From that revised 2019–21 level, proposed 2021–23 appropriations represent an increase of 12.4%.

The budget would balance over four years, leaving an unrestricted NGFO ending balance of $179 million in 2023–25. Along with the improved revenue forecast, the proposal would impose a capital gains tax (ESSB 5096) and it would drain the budget stabilization account (BSA, or the rainy day fund) in 2019–21. The transfer from the BSA to the general fund–state (GFS) would be $1.820 billion. (By the end of 2023–25, the BSA balance would be an estimated $1.125 billion.)

According to Sen. Rolfes, the capital gains tax revenues would be used to fund child care and the new taxpayer fairness account.

There would be significant transfers from the GFS to other funds, including:

• $800.0 million to the disaster response account in 2021–23
• $142.2 million to the taxpayer fairness account in 2021–23 and $216.1 million in 2023–25
• $75.0 million to the workforce education investment account in 2019–21
• $50.0 million to the developmental disabilities community trust account in 2021–23

Some major NGFO spending items (across the 2021 supplemental and 2021–23 biennial budget proposals) include:

• $500.0 million for unemployment insurance rate relief
• $250.0 million to implement and expand the working families tax exemption (HB 1297)
• $800.0 million for the Teachers’ Retirement System (TRS) Plan 1 unfunded actuarial accrued liability
• $358.0 million for student transportation emergency funding
• $190.7 million for school funding stabilization
• $27.4 million for accelerated learning opportunities
• $150.0 million for foundational public health
• $100.0 million for health care affordability (health benefit exchange premium assistance for individuals up to 250% of the poverty level)
• $94.7 million for provider rates
• $256.0 million for long-term care vendor rates
• $159.3 million for home and community based services expansion
• $125.0 million for forest health
• $99.6 million to eliminate state employee furlough days in the 2021–23 collective bargaining agreements

Additionally, the proposal would save $1.160 billion in the NGFO from federal Medicaid match changes.

On top of the NGFO spending, the proposal would also appropriate federal relief funds: $884.7 million in 2019–21 and $7.576 billion in 2021–23.