Apr 28, 2021  -  Uncategorized

The Washington State legislature recently finalized the 2021-23 Biennial & 2021 Supplemental Operating Budget.

CLICK HERE to review the full report.

Background Information

The 2020 Legislature closed their session amid the uncertainty of a public health emergency. Not long after adjournment, cases of COVID-19 began to rise throughout the world. Unemployment rose precipitously. Public schools closed their doors. Businesses modified their operations. Health care providers faced an influx of patients. Social distancing measures were implemented. COVID-19 impacted the lives of all Washingtonians during the course of 2020.

Uncertainty remained at the onset of the 2021 Legislature. However, several mitigating factors now exist. The development and deployment of vaccines offers hope to overcome COVID-19. Businesses look to rebound as public health related restrictions are lifted. State agencies implemented initaitives to generate savings during fiscal year 2021. The federal government passed several historic pieces of legislation to address the pandemic.

The Legislature appropriated federal funding from the Coronavirus Response and Relief Supplemental Appropriations Act in Engrossed Substitute House Bill (ESHB) 1368 (federal funding/COVID-19, effective 2/19/21). The Proposed Final budget appropriates funding from the American Rescue Plan Act (ARPA) of 2021, the federal government's most recent COVID-19 relief funding legislature. ARPA funding supplements many programs created in ESHB 1368 and existing state programs. The most flexible ARPA funding is from the Coronavirus State Fiscal Recovery Fund, which is available for spending in this 2021-23 biennial budget and the 2023-25 biennial budget.

Under the March 2021 revenue update, the 2021 Legislature is forecasted to ahve $4.3 billion more revenue in 2021-23 than was available in the preceding 2019-21 biennium. The Proposed Final budget also assumes a one-time transfer of $1.8 billion from the Budget Stabilization Account to the General Fund in fiscal year 2021. Projected consts for continuing current programs and other mandatory cost adjustment are expected to increase by $1.4 billion in 2021-23.

CLICK HERE to review the full report.

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