From the Director: Budgets Take Center Stage

Transportation, Capital and Operating budgets for the 2007 – 2009 biennium are all being refined as the State economy slows and revenue forecasts decline.

The combined decline in the revenue forecast, down $425 million, and additional case load costs, approximately $100 million, results in $525 million less for the biennial operating budget. The Governor previously stated a desire for a $1 billion reserve post this budget. The recent revenue and case load forecasts will make that nearly impossible.

The House passed an operating budget with a $750 million reserve, the Senate’s reserve was slightly higher, and both budgets stressed different priorities - meaning if you spent the money both chambers wanted to spend, the reserve would be significantly lower than $750 million. While $1 billion may be out of reach, the Governor does want a reserve higher than $750 million.

The Governor, House and Senate budget writers will now begin intense negotiations advancing their priorities understanding they have less than two weeks to session adjournment.

In terms of city budget priorities we remain optimistic. When times are tight we first work to ensure no damage and then seek some enhancements for AWC priorities.

• All three budgets (Governor’s original supplemental budget, House and Senate) provide additional money for housing programs, specifically the Housing Trust Fund. The Governor provides an additional $50 million, same from the House and more for other housing programs, and the Senate provides $30 million for the Housing Trust Fund plus more for other programs.
• All three budgets allocate $6 million to the Washington Families Fund for transitional housing.
• All three budgets also provide approximately $2 million to continue the work on establishing the action agenda to clean up Puget Sound.
• The House provided $1.5 million to assist local governments with gang issues. Neither the Governor’s or Senate’s budgets included money for this purpose but the Gang Task Force had just completed their work when the Governor’s budget was released and the Senate had not yet addressed E2SHB 2712 (gang legislation) prior to the release of their budget. We will continue to seek some financial assistance for this priority.
• Finally, all three budgets include approximately $1 million to further the State’s work on climate change, although exact allocations do not match nor do the purposes.

We will spend a great deal of time over the last two weeks defending what we have in the budget and attempting to retain some of the modest enhancements. If the Governor insists on a reserve between $800 and $900 million, some programs will have to be cut.

Less than 2 weeks until adjournment. Please respond to Action Alerts and other calls for help as quickly as you can – thank you!!!

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