OLYMPIA, WA – Washington State Governor Jay Inslee released his 2024 supplemental budget proposals today. They will serve as a mid-way update to the state’s two-year 2023–25 budgets. His release precedes the start of the 60-day legislative session on January 8th.
Heading into the new year, the state’s overall economic health remains strong. With pandemic response funding winding down, new state revenues have kept pace with higher costs from inflation and entitlement caseload increases. With modest state revenue gains expected, Inslee released a proposal that he says continues to prioritize urgent needs he has focused on in recent years such as climate change, homeless encampments, fentanyl treatment, and behavioral health services.
Inslee also says more spending is needed for school district buildings.
Building more housing to help address behavioral health issues in the state is also in Inslee’s proposed spending plan.
Not everyone is happy about Inslee’s new supplemental budget proposal. Senator Lynda Wilson (R-Vancouver), the ranking Republican on the Senate Ways and Means Committee, says the plan continues his same worrisome trends.
The governor’s supplemental budget proposal for 2023-2025 comes in the second year of Washington’s two-year budget cycle. It would add $2 billion in spending to the $69.8 billion operating budget passed by lawmakers earlier this year. About $870 million of the proposed increase would maintain current state programs, while the remaining $1.1 billion reflects new spending for programs advocated by the governor.
Wilson said she was encouraged by the governor’s proposal to provide local governments $10 million for law enforcement personnel, including recruitment and retention. She said she hopes lawmakers will increase that amount in the final version of the budget.
Another proposal for new spending contained in the governor’s budget is a $150 million “energy voucher” program designed to assist low-income Washington residents in coping with higher energy costs. Wilson noted that higher prices for motor fuel and electricity are being driven by high-cost energy programs advocated by the governor in previous legislative sessions. The Climate Commitment Act, the official name for the state’s cap-and-trade program, has added about 50 cents to the cost of a gallon of gas, making Washington one of the costliest states for transportation in the country.
“This proposal is the last supplemental budget the governor will place before the Legislature, and I think it is a good time to look back on the governor’s legacy. During the decade he has been in office, Washington has seen declines in affordability, public safety and education. These results come either in spite of the rapid growth in state spending – or because of it,” Wilson adds.
Meanwhile, Inslee’s supplemental budget released today proposes a $1.2 billion increase for the Department of Commerce, including $415 million in operating funds and $775 million in new capital dollars. The proposed budget funds all of the agency’s upcoming legislative requests.
The agency is seeking support for a wide range of existing and new programs focused on several priorities:
- Meeting urgent needs around housing stability, affordability and preventing homelessness;
- De-carbonizing and market transformation related to climate change;
- Creating green jobs, supporting small businesses and enhancing our global competitiveness;
- Closing the digital divide in Washington’s rural and urban communities; and
- Leveraging all avenues for securing generational investment opportunities from the federal government.
- Working with our many community partners to make meaningful investments.
“Governor Inslee’s proposed 2024 supplemental budget reflects his commitment to continue and grow our work with partners across the state to strengthen communities and meet the emerging needs of this critical moment in our state’s history,” Commerce Director Mike Fong says. “The governor is proposing a $1.2 billion dollar budget increase for our agency, with $415 million in operating funds and $775 million in capital dollars for our communities. Our 600 employees now stand ready to ensure these new resources, should the legislature approve them, get to the communities with the highest need.”
Highlights of Gov. Inslee’s budget to Commerce include:
- Nearly $130 million to match federal programs on pollution reduction, clean tech development and clean jobs. This funding continues to position us as strong contenders for federal dollars.
- $100 million for Clean Energy Community Decarbonization for community-driven, neighborhood-scale clean energy projects in low income and overburdened communities
- $100 million for heat pump installation for low income households
- $2 million for a Tribal Clean Energy Center
- To meet the urgent needs around housing instability, $100 million to resolve homeless encampments quickly and bring our most vulnerable people indoors
- $3 million to continue housing support for human trafficking victims
- $2 million to expand security and support for religious and non-profit community centers who experience hate-inspired vandalism
- Additional funds to support communities in need of broadband and digital access
- Flexible emergency funds to support natural disaster relief and other emergencies impacting infrastructure, services or community health
- Funds for the continued operation of our Communities of Concern Commission
- State funding for the Equitable Recovery and Reconciliation Alliance (ERRA) to match federal Small Business Administration funding to strengthen and support Black, Indigenous, and BIPOC-owned small businesses
“Commerce is unique, in that everything we do is an investment in Washington State’s greatest asset: our people,” Fong said. “Whether it be meeting their basic needs of housing and safety, helping our businesses rebuild in a post-pandemic economy, or connecting seniors and low income households to the internet, our programs help people move forward and build strong and resilient communities.”
Commerce’s budget has more than doubled since the 2019-21 biennium. Learn more about how Commerce strengthens communities at www.commerce.wa.gov.
Watch Governor Inslee’s full press conference HERE.
