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Legislative budget proposals miss the mark

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Legislative budget proposals miss the mark

Lawmakers fail to include funding to promote economic justice

By Molly Webster - February 29, 2024

Poverty is a policy decision. In Washington state, legislators have the power, resources, and responsibility to adequately fund state services and ensure everyone can meet their basic needs. Yet, nearly one in three people in Washington struggle to make ends meet. In 2023, homelessness in Washington grew 11%. Lawmakers must do more. This legislative session, lawmakers can and should pass funding for programs that support people experiencing the greatest need.

Legislators recently released their proposed 2024 supplemental budgets. The supplemental budget proposals offer adjustments to the 2023-2025 enacted biennial budget to better reflect the needs and lived realities of people across Washington. The House budget proposal totals $72 billion, while the Senate’s proposal totals $71.7 billion. The House and Senate’s budget proposals allocate an additional $2.19 billion and $1.85 billion, respectively. These additions largely align with the governor’s supplemental budget proposal, totaling $71.76 billion or a $1.95 billion increase from the 2023-2025 enacted budget. Revenue from sources like the newly enacted capital gains tax has helped make the increase in funding included in the budget proposals possible.

In the House and Senate’s proposals, the Department of Social and Health Services and other human services received the most significant boost in funding, followed by public schools and higher education. However, for many communities across Washington, the budgetary increases are not enough. Legislators failed to include funding for several programs that would materially improve people’s lives across Washington.

Here’s a comparison of what the Governor, House, and Senate supplemental budget proposals mean and how they compare to the Washington State Budget and Policy Center’s legislative priorities.

Direct Cash

Lawmakers did not include funding for a guaranteed basic income pilot, a Working Families Tax Credit eligibility expansion, or the Washington Future Fund program. These proven programs get money back into the pockets of families living on low incomes. However, the budget proposals did include funding for some direct cash programs.

ProgramGovernor's ProposalHouse ProposalSenate Proposal
Design a youth direct cash program
$550,000$550,000$0
Would allocate funds to design a direct cash program serving youth at risk of homelessness. This program could incorporate many of the principles of a Guaranteed Basic Income.
Working Families Tax Credit outreach
Would provide funding to community-based organizations to increase awareness and participation in the WFTC program.
$2,000,000$2,000,000$0
Would provide funding to community-based organizations to increase awareness and participation in the WFTC program.
Temporary Assistance for Needy Families time limit extension
$4,621,000$1,060,000$0
Would reinstate a broad hardship exemption for the program’s 60-month time limit.
Temporary Assistance for Needy Families child support pass through$0$407,000$0
Would allow families receiving TANF to receive 100% of child support payments, rather than withholding all but $50 or $100.

Immigration Justice

Immigrants are vital members of Washington’s bustling economy and vibrant community. This session, lawmakers provided funding for a Medicaid-like program for undocumented immigrants, a work group on developing an Unemployment Insurance program for undocumented workers, and grants to community-based organizations to help immigrants secure affordable and energy-efficient housing. Legislators have proposed funding the following programs:

ProgramGovernor's ProposalHouse ProposalSenate Proposal
Wage replacement workgroup$0$35,000$100,000
Would create a workgroup to identify funding streams for an unemployment insurance program for undocumented workers.
Enhanced programmatic funding for Apple Health expansion program$0$25,526,000$2,873,000
The Apple Health expansion program ensures that people unable to access Medicaid due to immigration status have access to a program offering comparable heath care coverage.
Study of Apple Health expansion program$0$0$100,000
This study would detail options to expand the Medicaid-like program to provide care for all undocumented individuals.
Staffing for Apple Health expansion program$229,000$229,000$229,000
Would cover additional staff costs due to the Apple Health expansion program to be implemented July 2024.
Health care for uninsured adults$618,000$618,000$618,000
Would provide funding for administrative support to expand health care services to individuals regardless of immigration status.
Health coverage enrollment navigators$0$1,000,000$0
Funding for community-based organizations to provide navigators to give information and enrollment support to individuals seeking health care.
Support services for newly arrived migrants and refugees$5,000,000$25,250,000$0
Funding that would expand support services for recently arrived immigrants not qualifying for federal refugee resettlement support.

Legal Financial Obligations

Last year, legislators passed a bill making juvenile legal financial obligations unenforceable. This session, lawmakers are on track to pass Senate Bill 5974, which would remove the uncollectable debt from people’s records – an essential fix that would provide relief to thousands of people in Washington.

ProgramGovernor's ProposalHouse ProposalSenate Proposal
Unenforceable legal financial obligations (LFOs)$0$0$51,000
Would provide funding for staff costs related to implementing SB 5974.
Legal financial obligations$0$359,000$359,000
Would provide County Clerk offices with funding for the collection of LFOs.
Legal financial obligations study$0$0$165,000
Would allow for the Washington State Center for Court Research to continue its study of LFOs charged by the superior courts and courts of limited jurisdiction.
Crime Victim Witness Assistance Account$0$1,000,000$4,000,000
Would allocate one-time funding for the Crime Victim Witness Assistance Account to bolster support and advocacy services for crime victims navigating the criminal legal system.

Progressive Revenue

Every session, the Budget and Policy Center endorses several progressive revenue proposals to raise much-needed revenue for our state without disproportionately burdening households living on low incomes. This legislative session, lawmakers have the opportunity to implement a wealth tax and real estate transfer tax that could increase annual state revenue by $3.2 billion. Despite the potential of these proposals, legislators have been slow to act on progressive revenue this session.

The House supplemental budget proposal allocates $1,998,000 to implement 2024 revenue legislation that makes technical corrections and reduces future total state revenue.* The Governor, House, and Senate budgets include no explicit additional funding for progressive revenue proposals.

Funding for community priorities cannot wait

While legislators are working to craft budget proposals that respond to a range of community needs, the 2024 supplemental budget proposals miss the mark. Several ballot initiatives threaten the state’s future ability to use progressive revenue streams and put  critical funding for education programs at risk. Lawmakers must codify progressive revenue provisions to fund programs like a guaranteed basic income pilot or unemployment insurance program for undocumented workers that require consistent funding.

What comes next

Next, the House and Senate will work to reconcile differences between the two legislative budget proposals and craft a single budget proposal. Legislators must vote to enact the budget before sine die, the last day of the legislative session, on March 7. After legislators vote to enact a supplemental budget, the governor can pass, veto, or partially veto the budget. The final supplemental budget will take effect July 1, 2024.

Stay tuned for the Budget and Policy Center’s analysis of the enacted 2024 supplemental budget in the coming weeks.

*March 6, 2024. This blog post is updated from a previous version. The Progressive Revenue section explains more clearly what revenue legislation is included in the House budget proposal.

Posted in:

Budget & Tax Analysis, Criminal Legal Policy, Economic Well-Being, Fines & Fees, Healthy People & Communities, State Budget & Revenue
About Molly Webster, Senior Policy Analyst

Molly (she/her) was a member of the Budget and Policy Center’s policy team, where she held a State Policy Fellowship through the Center on Budget and Policy Priorities’ two-year national fellowship program. She focused on budget analysis and criminal legal reform policies.

Read more from Molly