Assumed revenues

AN ACT Relating to limiting assumed revenues to projected 1
revenues by the economic and revenue forecast council; amending RCW 2
43.88.030 and 43.88.055; and declaring an emergency.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 43.88.030 and 2023 c 474 s 8035 are each amended to 5
read as follows: 6
(1) The director of financial management shall provide all 7
agencies with a complete set of instructions for submitting biennial 8
budget requests to the director at least three months before agency 9
budget documents are due into the office of financial management. The 10
budget document or documents shall consist of the governor's budget 11
message which shall be explanatory of the budget and shall contain an 12
outline of the proposed financial policies of the state for the 13
ensuing fiscal period, as well as an outline of the proposed six-year 14
financial policies where applicable, and shall describe in connection 15
therewith the important features of the budget. The biennial budget 16
document or documents shall also describe performance indicators that 17
demonstrate measurable progress towards priority results. The message 18
shall set forth the reasons for salient changes from the previous 19
fiscal period in expenditure and revenue items and shall explain any 20
major changes in financial policy. Attached to the budget message 21
H-0605.2
HOUSE BILL 1411
State of Washington 69th Legislature 2025 Regular Session
By Representatives Couture, Orcutt, Griffey, Ley, Schmick, Connors,
and Jacobsen
Read first time 01/20/25. Referred to Committee on Appropriations.
p. 1 HB 1411
shall be such supporting schedules, exhibits and other explanatory 1
material in respect to both current operations and capital 2
improvements as the governor shall deem to be useful to the 3
legislature. The budget document or documents shall set forth a 4
proposal for expenditures in the ensuing fiscal period, or six-year 5
period where applicable, based upon the estimated revenues and 6
caseloads as approved by the economic and revenue forecast council 7
and caseload forecast council or upon the estimated revenues and 8
caseloads of the office of financial management for those funds, 9
accounts, sources, and programs for which the forecast councils do 10
not prepare an official forecast. Revenues shall be estimated for 11
such fiscal period from the source and at the rates existing by law 12
at the time of submission of the budget document, including the 13
supplemental budgets submitted in the even-numbered years of a 14
biennium. However, the estimated revenues and caseloads for use in 15
the governor's budget document may be adjusted to reflect budgetary 16
revenue transfers and revenue and caseload estimates dependent upon 17
budgetary assumptions of enrollments, workloads, and caseloads. All 18
adjustments to the approved estimated revenues and caseloads must be 19
set forth in the budget document. The governor may additionally 20
submit, as an appendix to each supplemental, biennial, or six-year 21
agency budget or to the budget document or documents, a proposal for 22
expenditures in the ensuing fiscal period from revenue sources 23
derived from proposed changes in existing statutes.24
The budget document or documents shall also contain:25
(a) Revenues classified by fund and source for the immediately 26
past fiscal period, those received or anticipated for the current 27
fiscal period, and those anticipated for the ensuing biennium;28
(b) The undesignated fund balance or deficit, by fund;29
(c) Such additional information dealing with expenditures, 30
revenues, workload, performance, and personnel as the legislature may 31
direct by law or concurrent resolution; 32
(d) Such additional information dealing with revenues and 33
expenditures as the governor shall deem pertinent and useful to the 34
legislature; 35
(e) Tabulations showing expenditures classified by fund, 36
function, and agency; 37
(f) The expenditures that include nonbudgeted, nonappropriated 38
accounts outside the state treasury; 39
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(g) Identification of all proposed direct expenditures to 1
implement the Puget Sound water quality plan under chapter 90.71 RCW, 2
shown by agency and in total; and 3
(h) Tabulations showing each postretirement adjustment by 4
retirement system established after fiscal year 1991, to include, but 5
not be limited to, estimated total payments made to the end of the 6
previous biennial period, estimated payments for the present 7
biennium, and estimated payments for the ensuing biennium.8
(2) The budget document or documents shall include detailed 9
estimates of all anticipated revenues applicable to proposed 10
operating or capital expenditures and shall also include all proposed 11
operating or capital expenditures. The total of beginning 12
undesignated fund balance and estimated revenues less working capital 13
and other reserves shall equal or exceed the total of proposed 14
applicable expenditures. The budget document or documents shall 15
further include: 16
(a) Interest, amortization and redemption charges on the state 17
debt; 18
(b) Payments of all reliefs, judgments, and claims;19
(c) Other statutory expenditures; 20
(d) Expenditures incident to the operation for each agency;21
(e) Revenues derived from agency operations; 22
(f) Expenditures and revenues shall be given in comparative form 23
showing those incurred or received for the immediately past fiscal 24
period and those anticipated for the current biennium and next 25
ensuing biennium; 26
(g) A showing and explanation of amounts of general fund and 27
other funds obligations for debt service and any transfers of moneys 28
that otherwise would have been available for appropriation;29
(h) Common school expenditures on a fiscal-year basis;30
(i) A showing, by agency, of the value and purpose of financing 31
contracts for the lease/purchase or acquisition of personal or real 32
property for the current and ensuing fiscal periods; and33
(j) A showing and explanation of anticipated amounts of general 34
fund and other funds required to amortize the unfunded actuarial 35
accrued liability of the retirement system specified under chapter 36
41.45 RCW, and the contributions to meet such amortization, stated in 37
total dollars and as a level percentage of total compensation.38
(3) The governor's operating budget document or documents shall 39
reflect the statewide priorities as required by RCW 43.88.090.40
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(4) The governor's operating budget document or documents shall 1
identify activities that are not addressing the statewide priorities.2
(5)(a) Beginning in the 2021-2023 fiscal biennium, the governor's 3
operating budget document or documents submitted to the legislature 4
must leave, in total, a positive ending fund balance in the general 5
fund and related funds. 6
(b) Beginning in the 2021-2023 fiscal biennium, the projected 7
maintenance level of the governor's operating budget document or 8
documents submitted to the legislature must not exceed the available 9
fiscal resources for the next ensuing fiscal biennium.10
(c) For purposes of this subsection: 11
(i) "Available fiscal resources" means the beginning general fund 12
and related funds balances and any fiscal resources estimated for the 13
general fund and related funds, adjusted for proposed revenue 14
legislation, and with forecasted revenues ((adjusted)) pursuant to 15
((the greater of (A))) the official general fund and related funds 16
revenue forecast for the ensuing biennium ((, or (B) the official 17
general fund and related funds forecast for the second fiscal year of 18
the current fiscal biennium, increased by 4.5 percent for each fiscal 19
year of the ensuing biennium)). 20
(ii) "Projected maintenance level" means estimated appropriations 21
necessary to maintain the continuing costs of program and service 22
levels either funded in the governor's budget document or documents 23
submitted to the legislature or mandated by other state or federal 24
law, adjusted by the estimated cost of proposed executive branch 25
legislation, and the amount of any general fund moneys projected to 26
be transferred to the budget stabilization account pursuant to 27
Article VII, section 12 of the state Constitution. Proposed executive 28
branch legislation does not include proposals by institutions of 29
higher education, other separately elected officials, or other 30
boards, commissions, and offices not under the authority of the 31
governor that are not funded or assumed in the governor's budget 32
document or documents submitted to the legislature.33
(iii) "Related funds" has the meaning defined in RCW 43.88.055.34
(d) (b) of this subsection (5) does not apply:35
(i) To any governor-proposed legislation submitted to the 36
legislature that makes net reductions in general fund and related 37
funds appropriations to prevent the governor from making across-the-38
board reductions in allotments for these particular funds as provided 39
in RCW 43.88.110(10); or 40
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(ii) In a fiscal biennium for which the governor proposes 1
appropriations from the budget stabilization account pursuant to 2
Article VII, section 12(d)(ii) of the state Constitution.3
(6) A separate capital budget document or schedule shall be 4
submitted that will contain the following: 5
(a) A statement setting forth a long-range facilities plan for 6
the state that identifies and includes the highest priority needs 7
within affordable spending levels; 8
(b) A capital program consisting of proposed capital projects for 9
the next biennium and the two biennia succeeding the next biennium 10
consistent with the long-range facilities plan. Insomuch as is 11
practical, and recognizing emergent needs, the capital program shall 12
reflect the priorities, projects, and spending levels proposed in 13
previously submitted capital budget documents in order to provide a 14
reliable long-range planning tool for the legislature and state 15
agencies; 16
(c) A capital plan consisting of proposed capital spending for at 17
least four biennia succeeding the next biennium; 18
(d) A strategic plan for reducing backlogs of maintenance and 19
repair projects. The plan shall include a prioritized list of 20
specific facility deficiencies and capital projects to address the 21
deficiencies for each agency, cost estimates for each project, a 22
schedule for completing projects over a reasonable period of time, 23
and identification of normal maintenance activities to reduce future 24
backlogs; 25
(e) A statement of the reason or purpose for a project;26
(f) Verification that a project is consistent with the provisions 27
set forth in chapter 36.70A RCW; 28
(g) A statement about the proposed site, size, and estimated life 29
of the project, if applicable; 30
(h) Estimated total project cost; 31
(i) For major projects valued over five million dollars, 32
estimated costs for the following project components: Acquisition, 33
consultant services, construction, equipment, project management, and 34
other costs included as part of the project. Project component costs 35
shall be displayed in a standard format defined by the office of 36
financial management to allow comparisons between projects;37
(j) Estimated total project cost for each phase of the project as 38
defined by the office of financial management; 39
(k) Estimated ensuing biennium costs; 40
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(l) Estimated costs beyond the ensuing biennium;1
(m) Estimated construction start and completion dates;2
(n) Source and type of funds proposed; 3
(o) Estimated ongoing operating budget costs or savings resulting 4
from the project, including staffing and maintenance costs;5
(p) For any capital appropriation requested for a state agency 6
for the acquisition of land or the capital improvement of land in 7
which the primary purpose of the acquisition or improvement is 8
recreation or wildlife habitat conservation, the capital budget 9
document, or an omnibus list of recreation and habitat acquisitions 10
provided with the governor's budget document, shall identify the 11
projected costs of operation and maintenance for at least the two 12
biennia succeeding the next biennium. Omnibus lists of habitat and 13
recreation land acquisitions shall include individual project cost 14
estimates for operation and maintenance as well as a total for all 15
state projects included in the list. The document shall identify the 16
source of funds from which the operation and maintenance costs are 17
proposed to be funded; 18
(q) For any capital budget request for funding in the 2023-2025 19
or 2025-2027 fiscal biennia by an institution of higher education to 20
address a cost increase for any major project, a statement describing 21
the unexpected project costs, ways the agency has mitigated or will 22
mitigate the estimated project costs, and identification of other 23
funding that may be applied to the project. For purposes of this 24
subsection (6)(q): 25
(i) "Cost increases" means total project costs estimated above 26
those listed in the prior agency budget request and for which the 27
legislature relied in making a funding decision for design or 28
construction, adjusted for C-100 inflation factors; and29
(ii) "Institution of higher education" has the meaning provided 30
in RCW 28B.10.016; 31
(r) Such other information bearing upon capital projects as the 32
governor deems to be useful; 33
(s) Standard terms, including a standard and uniform definition 34
of normal maintenance, for all capital projects; and35
(t) Such other information as the legislature may direct by law 36
or concurrent resolution. 37
For purposes of this subsection (6), the term "capital project" 38
shall be defined subsequent to the analysis, findings, and 39
recommendations of a joint committee comprised of representatives 40
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from the house capital appropriations committee, senate ways and 1
means committee, legislative evaluation and accountability program 2
committee, and office of financial management. 3
(7) No change affecting the comparability of agency or program 4
information relating to expenditures, revenues, workload, performance 5
and personnel shall be made in the format of any budget document or 6
report presented to the legislature under this section or RCW 7
43.88.160(1) relative to the format of the budget document or report 8
which was presented to the previous regular session of the 9
legislature during an odd-numbered year without prior legislative 10
concurrence. Prior legislative concurrence shall consist of (a) a 11
favorable majority vote on the proposal by the standing committees on 12
ways and means of both houses if the legislature is in session or (b) 13
a favorable majority vote on the proposal by members of the 14
legislative evaluation and accountability program committee if the 15
legislature is not in session. 16
Sec. 2. RCW 43.88.055 and 2021 c 199 s 103 are each amended to 17
read as follows: 18
(1) The legislature must adopt a four-year balanced budget as 19
follows: 20
(a) Beginning in the 2013-2015 fiscal biennium, the legislature 21
shall enact a balanced omnibus operating appropriations bill that 22
leaves, in total, a positive ending fund balance in the general fund 23
and related funds. 24
(b) Beginning in the 2013-2015 fiscal biennium, the projected 25
maintenance level of the omnibus appropriations bill enacted by the 26
legislature shall not exceed the available fiscal resources for the 27
next ensuing fiscal biennium. 28
(2) For purposes of this section: 29
(a) "Available fiscal resources" means the beginning general fund 30
and related fund balances and any fiscal resources estimated for the 31
general fund and related funds, adjusted for enacted legislation, and 32
with forecasted revenues ((adjusted)) pursuant to ((the greater of 33
(i))) the official general fund and related funds revenue forecast 34
for the ensuing biennium ((, or (ii) the official general fund and 35
related funds forecast for the second fiscal year of the current 36
fiscal biennium, increased by 4.5 percent for each fiscal year of the 37
ensuing biennium)); 38
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(b) "Projected maintenance level" means estimated appropriations 1
necessary to maintain the continuing costs of program and service 2
levels either funded in that appropriations bill or mandated by other 3
state or federal law, and the amount of any general fund moneys 4
projected to be transferred to the budget stabilization account 5
pursuant to Article VII, section 12 of the state Constitution;6
(c) "Related funds," as used in this section, means the 7
Washington opportunity pathways account, the workforce education 8
investment account, the fair start for kids account, and the 9
education legacy trust account. 10
(3) Subsection (1)(a) and (b) of this section does not apply to 11
an appropriations bill that makes net reductions in general fund and 12
related funds appropriations and is enacted between July 1st and 13
February 15th of any fiscal year. 14
(4) Subsection (1)(b) of this section does not apply in a fiscal 15
biennium in which money is appropriated from the budget stabilization 16
account pursuant to Article VII, section 12 (d)(ii) of the state 17
Constitution. 18
NEW SECTION. Sec. 3. This act is necessary for the immediate 19
preservation of the public peace, health, or safety, or support of 20
the state government and its existing public institutions, and takes 21
effect immediately.22
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