Today Rep. Hunter, chair of the House Ways and Means Committee, released his proposed 2012 supplemental budget. The budget overview document describes the near general fund-state plus opportunity pathways (NGFS+) budget problem as being $1.472 billion (including reserves totalling $504 million).
This problem statement takes into account significant maintenance level savings and a positive February revenue forecast. The proposed supplemental would increase revenues by $114.5 million, transfer $53.7 million into the general fund from other accounts, and make policy level reductions totalling $881.5 million.
New state revenues would include reducing certain distributions to local governments (but local governments would get increased local option taxing authority) and limiting the mortgage B&O tax deduction. Funds would be transferred to the general fund from several accounts, including the Education Savings Account and the Public Service Revolving Account.
Spending reductions would total $1.216 billion. Of that, $334.9 million is from maintenance level changes. Every budget area would be cut (see table below); some significant changes are:
- Initiative 1163 (regarding long-term care training and certification) would be funded.
- Regional Support Networks (RSN) Medicaid rates and RSN non-Medicaid funding would be reduced.
- Temporary Assistance for Needy Families/Working Connections Child Care programs would see reduced funding due to caseload changes.
- Indigent assistance grants to hospitals would be eliminated.
- Changes to Critical Access Hospital rates will be made.
- Public health funding would be discontinued Jan. 1, 2013 (and partially replaced with liquor excise tax distributions).
- The length of supervision of offenders would be reduced to 12 months (except for sex offenders, who would be supervised for 24 months).
- The State Conservation Commission would be eliminated, effective July 1, 2012.
- June 2013 apportionment payments to school districts would be shifted from the last business day of June 2013 to the first business day of July 2013.
- May and June 2013 levy equalization payments would be shifted to July 2013.
- State funding for UW, WSU, EWU, CWU, Evergreen, and the community and technical college system would be reduced by 3 percent; funding for WWU would be reduced by 2.5 percent.
- Funding for the Office of Student Financial Assistance would be transferred to the new Student Achievement Council.
- The funding rate for the Public Employees’ Benefits Board would be reduced from $850 to $800 per employee per month for FY 2013.
Below is a comparison of the changes (policy and maintenance) in the chair’s proposal and the governor’s updated proposal:
The chart includes the shift in school apportionment funds ($340 million) that is included in both the governor’s and the chair’s proposal, and it includes the levy equalization shift of $74.8 million that is in the chair’s proposal.
Washington Research Council 