Difference between revisions of "Washington state budget"

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{{budget infobox2|
{{budget infobox|
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| state = Washington  
state = Washington |
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| image = Flag of Washington.png|
image = Flag of Washington.png|
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| budgetcal =Biennial
budgetcal = Biennial |
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| fiscalyear =2013-2014
fiscalyear = 2014 |
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| credit=AA+ (as of May 2012)
datelaw= June 15, 2011 |
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| percentchangedr =   
lasteraltered = |
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| expenses =$33.2 billion
revenue =  |
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| all funds expenses =$15.6 billion (FY 2013 estimate)
percentchangedr =  |
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| spending change =1.92%
expenses = $61 billion|
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| change =up
all funds expenses = |
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| governor = Christine Gregoire
percentchanged = |
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| % federal = 28.59%
}}
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| state debt = $89,579,477,000
[[Washington]]'s Gov. [[Christine Gregoire]] signed the FY2012-13 state spending plan of $32 billion into law on June 15, 2011.<ref name=signs/> A special session ended in December 2011 after the [[Washington State Legislature|legislature]] approved a $480 million budget bill that makes less than $200 million in actual cuts and relies on shifting funds to fill the budget gap.<ref>[http://www.theolympian.com/2011/12/13/1912497/house-oks-480-million-budget-gap.html The Olympian "Approval of $480M budget gap bill paves way for special session to end" Dec. 13, 2011]</ref>  After two additional special sessions, the legislature on April 11, 2012 approved a supplemental budget that spends $1.1 billion less than a version approved last year.<ref>[http://seattletimes.nwsource.com/html/localnews/2017950849_apwaxgrbudget.html?prmid=4939 The Seattle Times "Wash. Legislature passes budget proposal" April 11, 2012]</ref> The governor signed it into law on May 2, 2012.<Ref>[http://www.columbian.com/news/2012/may/02/gregoire-state-needs-new-revenue-she-signs-budget/ The Columbian "Gregoire: State needs new revenue" May 2, 2012]</ref>
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| per cap debt = $12,988
 +
}}{{tnr|limit=3}}This page contains information about '''budget processes and policy issues''' in [[Washington]], including:
 +
* A summary of the budget drafting process
 +
* Trends in expenditures and revenues
 +
* Current and past fiscal year budget developments
 +
* Financial transparency measures
  
The state operates on a biennial budget cycle, which currently encompasses FY2012 and FY2013.<ref>[http://www.ncsl.org/issues-research/budget/state-experiences-with-annual-and-biennial-budgeti.aspx National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011]</ref> The fiscal year begins on July 1.
+
Between fiscal year 2009 and fiscal year 2013, Washington's total expenditures decreased by approximately $400 million, from $33.6 billion in 2009 to $33.2 billion in 2013. This represents an 1.19 percent decrease, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).<ref>[http://www.bls.gov/cpi/cpid1402.pdf ''Bureau of Labor Statistics'', "CPI Detailed Report Data for February 2014," accessed April 9, 2014]</ref><ref>[http://inflationdata.com/Inflation/Inflation_Calculators/Cumulative_Inflation_Calculator.aspx ''InflationData.com'', "Cumulative Inflation Calculator," February 28, 2014]</ref>
  
In FY 2012 Washington had a total state debt of approximately $81,330,651,000  when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the FY2013 state budget gap.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-third-annual-state-debt-report-shows-total-state-debt-over-4-trillionState Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012]</ref> The FY2013 state debt total is down slightly from the prior year's total of $83,215,274,000.<Ref>[http://www.statebudgetsolutions.org/publications/detail/report-reveals-aggregate-state-debt-exceeds-4-trillion-2 State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011]</ref>
+
==Budget process==
 +
{{Washington budget process}}
  
Washington's total state debt per capita on FY 2012 was $11,907.79.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-debt-more-than-37000-per-private-worker-13000-per-capita State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012]</ref>
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==Expenditures==
 +
===Definitions===
 +
{{Budget types background}}
 +
===2013 expenditures===
 +
[[File:Washington total expenditures 2013.png|right|thumb|500px|Breakdown of expenditures in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.
  
:: ''See also: [http://www.statebudgetsolutions.org/state/detail/washington The Washington State Budget on State Budget Solutions]''
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="7" align="center" style="background-color:#008000; color: white;" | Total state expenditures, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | General fund
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Other funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Bonds
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita expenditures**
 +
|-
 +
|'''Washington''' || '''$15,633''' || '''$7,744''' || '''$7,809''' || '''$2,016''' || '''$33,202''' || '''$4,762.60'''
 +
|-
 +
|[[California state budget|California]] || $95,665 || $81,299 || $38,656 || $12,261 || $227,881 || $5,944.85
 +
|-
 +
|[[Nevada state budget|Nevada]] || $3,179 || $2,918 || $2,769 || $27 || $8,893 || $3,187.30
 +
|-
 +
|[[Oregon state budget|Oregon]] || $5,960 || $7,452 || $12,262 || $132 || $25,806 || $6,566.30
 +
|-
 +
|align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
==Federal Aid to State Budget==
+
===Expenditures by function===
 +
[[File:Washington expenditures by type 2012.png|right|thumb|500px|Breakdown of expenditures by function in FY 2012.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
State expenditures in Washington can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.
  
The chart below represents how much of the state’s budget comes from the federal government. The number is the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):
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{| class="wikitable" style="text-align:center; width:55%;"
{| class="wikitable sortable"
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures by function, FY 2012 (as percents)<ref name=expenditures2013/>
| align="center" style="background:#f0f0f0;"|'''State'''
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| align="center" style="background:#f0f0f0;"|'''2008'''
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| align="center" style="background:#f0f0f0;"|'''2009'''
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| align="center" style="background:#f0f0f0;"|'''2010'''
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| align="center" style="background:#f0f0f0;"|'''2011'''
+
 
|-
 
|-
| Washington || 25.72% (#39) || 30.22% (#34) || 33.15% (#37) || 31.27% (#41)
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! valign="bottom" style="background-color:#444; color: white;" | State
|}
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! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
*Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.<ref>[http://www.census.gov/compendia/statab/cats/state_local_govt_finances_employment/federal_aid_to_state_and_local_governments.html '''US Census''' Federal Aid to State and Local Governments]</ref><ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation''' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013]</ref>
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! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|'''Washington''' || '''22.9%''' || '''17.8%''' || '''1.0%''' || '''12.1%''' || '''2.7%''' || '''8.4%''' || '''35.1%'''
 +
|-
 +
|[[California state budget|California]] || 19.9% || 7.0% || 3.8% || 21.6% || 5.4% || 6.3% || 36.0%
 +
|-
 +
|[[Nevada state budget|Nevada]] || 23.6% || 9.7% || 3.2% || 25.4% || 3.8% || 9.5% || 24.9%
 +
|-
 +
|[[Oregon state budget|Oregon]] || 14.0% || 2.5% || 0.7% || 18.2% || 3.9% || 6.7% || 54.1%
 +
|-
 +
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
==Fiscal Year 2012-13 State Budget==
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===Expenditure trends===
 +
From 2008 to 2012, expenditures on elementary and secondary education, public assistance, Medicaid, corrections and transportation decreased between 0.1 and 7.5 percent. During that same time period, expenditures on higher education increased by 4.1 percent. The table below details changes in expenditures from 2008 to 2012.<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref><ref name=expenditures2012>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report%20%28Fiscal%202010-2012%29.pdf ''National Association of State Budget Officers'', "State Expenditures Report, 2010-2012," accessed February 24, 2014]</ref><ref name=expenditures2009>[http://www.nasbo.org/sites/default/files/2009-State-Expenditure-Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009," accessed February 24, 2014]</ref><ref name=expenditures2008>[http://www.nasbo.org/sites/default/files/FY08%20State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2008," accessed February 24, 2014]</ref> Figures are rendered as percents, indicating the share of the total budget spent per category.
  
The state's 2011 operating, capital, and transportation budgets as originally enacted can be found online.<ref>[http://apps.leg.wa.gov/documents/billdocs/2011-12/Pdf/Bills/Session%20Law%202011/1087-S.SL.pdf 2011 Operating Budget]</ref>. The state's capital budget as originally enacted can be found [http://apps.leg.wa.gov/documents/billdocs/2011-12/Pdf/Bills/Session%20Law%202011/1497-S.SL.pdf 2011 Capital Budget]</ref>. The transportation budget as originally enacted can be found [http://apps.leg.wa.gov/documents/billdocs/2011-12/Pdf/Bills/Session%20Law%202011/1175-S.SL.pdf 2011 Transportation Budget]</ref>.
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{| class="wikitable" style="text-align:center; width:65%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures from 2008 to 2012 (as percents)
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|2012 || 22.9% || 17.8% || 1.0% || 12.1% || 2.7% || 8.4% || 35.1%
 +
|-
 +
|2011 || 23.3% || 14.2% || 1.4% || 23.5% || 2.9% || 8.3% || 26.3%
 +
|-
 +
|2010 || 24.4% || 13.2% || 1.4% || 23.0% || 3.2% || 9.1% || 25.8%
 +
|-
 +
|2009 || 24.6% || 13.3% || 1.2% || 21.4% || 3.4% || 8.0% || 28.0%
 +
|-
 +
|2008 || 23.1% || 13.7% || 1.3% || 19.6% || 3.7% || 8.5% || 30.2%
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''-0.20%''' || align="center" style="background-color:black; color:white"|'''4.10%'''|| align="center" style="background-color:black; color:white"| '''-0.30%''' || align="center" style="background-color:black; color:white"|'''-7.50%''' ||align="center" style="background-color:black; color:white"| '''-1.00%''' || align="center" style="background-color:black; color:white"|'''-0.10%''' || align="center" style="background-color:black; color:white"|'''4.90%'''
 +
|-
 +
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
The supplemental budgets enacted in spring 2012 to the operating, construction and transportation budgets can be found online.<ref>[http://www.ofm.wa.gov/budget/legbudgets/12supplemental.asp Spring 2012 Supplemental Operating, Construction, and Transportation budgets].
+
==Revenues==
 +
===2013 revenues===
 +
[[File:Washington GF revenues 2013.png|right|400px|thumb|Breakdown of general fund revenue sources in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.  
  
'''Pensions'''
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|'''Washington''' || '''$7,656''' || '''$0''' || '''$0''' || '''$0''' || '''$8,116''' || '''$15,772''' || '''$2,262.38'''
 +
|-
 +
|[[California state budget|California]] || $20,240 || $63,901 || $7,509 || $1 || $6,544 || $98,195 || $2,561.66
 +
|-
 +
|[[Nevada state budget|Nevada]] || $919 || $0 || $0 || $705 || $1,463 || $3,087 || $1,106.40
 +
|-
 +
|[[Oregon state budget|Oregon]] || $0 || $6,300 || $500 || $0 || $496 || $7,296 || $1,856.46
 +
|-
 +
| align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.<ref name=2013census>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk ''United States Census Bureau'', "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
In July 2012, state budget director Marty Brown announced a $390 million increase in its contribution to numerous public pension plans in 2013-15, about $51 million more than the Office of Financial Management had been assuming.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-pension-contributions-to-rise-state-cost-390-million#ixzz21lalEBUp The News Tribune "State pension contributions to rise; state cost $390 million" July 25, 2012]</ref>
+
===Revenue trends===
 +
The table below details the change in revenue sources in the general fund from 2009 to 2013.<ref name=expenditures2013/><ref name=expenditures2011/> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
  
'''Corrections'''
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{| class="wikitable" style="text-align:center; width:65%;"
 
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, Washington ($ in millions)<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref>
Lawmakers cut funding for the Department of Corrections by more than $300 million, requiring the department to reduce its work force by 20 percent and close three prisons.<ref>[http://union-bulletin.com/news/2012/aug/11/prison-head-hopes-worst-of-budget-storm-over/# The Union Bulletin "Prison head hopes worst of budget storm over" Aug. 11, 2012]</ref>
+
 
+
===2012 Special Legislative Sessions===
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When lawmakers failed to address the $1 billion budget shortfall in the state budget during their regular 60-day legislative session, Gov. Chris Gregoire called a 30-day special session to begin on March 12, 2012.<ref name=no>[http://seattletimes.nwsource.com/html/localnews/2017703964_legislature09m.html The Seattle Times "No agreement on budget; special session is called" March 9, 2012]</ref>  When that special session expired on April 9 and lawmakers failed to complete their work, Gov. Gregoire called lawmakers back into a second, one-day special session at midnight on April 10.<ref name=passes>[http://seattletimes.nwsource.com/html/localnews/2017950849_apwaxgrbudget.html?prmid=4939 The Seattle Times "Wash. Legislature passes budget proposal" April 11, 2012]</ref> Lawmakers passed the supplemental state budget on April 11, 2012.  The [[Washington State Senate|Senate]] passed the measure on a 44-2 vote and the [[Washington House of Representatives|House]] earlier passed the negotiated agreement on a 64-34 vote.<ref name=passes/>  Lawmakers also approved a $1 billion capital budget package that supporters say will lead to 18,000 construction jobs.<ref name=passes/>
+
 
+
Highlights of the supplemental budget passed in April 2012 include
+
*no cuts to education;<ref name=passes/> 
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*implementing the accounting change by which the state will claim control of local sales taxes before they are redistributed back to jurisdictions at the appointed time, usually a month after they are collected. The change is expected  to generate $238 million for the state;<ref name=passes/>
+
*increased taxes, generating $14.5 million by eliminating a tax deduction for some large banks, and changing rules on roll-your-own cigarettes to generate an expected $12 million;<ref name=passes/> 
+
*leaves some $320 million in reserves.<ref name=passes/> 
+
 
+
Republicans had criticized Democrats for wanting to push a payment to schools into the next budget period, and Democrats criticized the Republicans' budget plan to skip a payment to underfunded pension plans.  Gov. Gregoire proposed a third plan under which sales-tax revenue collected by the state on behalf of local governments would stay in the state's general fund longer, giving he state an additional $238 million to spend elsewhere.  Local governments would lose a relatively small sum in the form of interest but the state said they would pay the governments those funds.<ref>[http://seattletimes.nwsource.com/html/politics/2017811058_budget22.html The Seattle Times "3rd state budget solution afloat in Olympia could end partisan struggle" March 21, 2012]</ref>
+
 
+
House Democrats abandoned their initial proposal delaying a payment to schools into the next budget cycle and instead adopted the Governor's plan to use an alternative accounting maneuver regarding local sales taxes.  That plan includes a two-year balanced budget measure that would require an outlook for a four-year budget. Republicans want a four-year requirement in statute, that is more than an outlook.<ref>[http://seattletimes.nwsource.com/html/localnews/2017910740_apwaxgrbudget4thldwritethru.html The Seattle Times "Wash. state budget dispute spills out into public" April 4, 2012]</ref>
+
 
+
The Special Session ended April 30, 2012.<ref>[http://www.theolympian.com/2012/03/28/2048548/wash-lawmakers-struggle-with-budget.html The Olympian "There's no sign special session will end April 10" March 28, 2012]</ref> The governor signed the supplemental budget into law on May 2, 2012.<Ref>[http://www.columbian.com/news/2012/may/02/gregoire-state-needs-new-revenue-she-signs-budget/ The Columbian "Gregoire: State needs new revenue" May 2, 2012]</ref>
+
 
+
===Regular 2012 Legislative Session===
+
 
+
After addressing only a portion of the state's $1.5 billion shortfall in a special session at the end of 2011, the [[Washington State Legislature|legislature]] took up budget issues during the regular session in 2012 which began on Jan. 9, 2012.<ref>[http://seattletimes.nwsource.com/html/localnews/2017335388_budget26.html The Seattle Times "Republican lawmakers say work on state budget lags" Jan. 26, 2011]</ref><ref>[http://www.thenewstribune.com/2012/02/07/2015626/with-gay-marriage-debate-over.html The News Tribune "With gay marriage debate over, it's budget time" Feb. 7, 2012]</ref>  On March 7, 2012, with one day left until the end of the regular session approaching and no deal in sight, Gov. Gregoire predicted that a special legislative session would be necessary to address the roughly $1 billion budget shortfall in the state budget.<ref>[http://seattletimes.nwsource.com/html/localnews/2017693248_specialsession08m.html The Seattle Times "Special session looking likely for lawmakers to finish budget" March 7, 2012]</ref>  She was correct.  No budget deal was reached and the governor called a special session.<ref name=no/>
+
 
+
'''Transportation budget'''
+
 
+
The Senate passed a transportation budget on March 6, 2012, with $48 million in new spending over the next year for freeway projects, transit, the state patrol and the ferry system.  The House transportation budget passed on March 5, 2012, has $9 million more in new spending.  The Senate budget has a more modest set of driving-related fee increases. A joint-chamber conference will likely be needed to draft a compromise.<ref>[http://seattletimes.nwsource.com/html/localnews/2017681188_apwaxgrsenatetransportationbudget.html The Seattle Times "WA Senate passes transportation budget" March 6, 2012]</ref> The biggest issues preventing agreement between the Republican and Democratic budgets were provisions to skip or delay certain payments.<ref name=no/>
+
 
+
'''Senate general fund budget proposals'''
+
 
+
On March 2, 2012, Republicans in the [[Washington State Senate|state Senate]], joined by three Democrats, used a rare procedural move to take over the budget plan on the Senate floor. After midnight, the budget was narrowly approved 25-24 and sent to the [[Washington House of Representatives|state House]].<Ref>[http://www.washingtonpolicy.org/sites/default/files/GOP%20budget%20summary.pdf The Seattle Times "GOP grabs reins of budget in Olympia" March 3, 2013]</ref>  A summary of the Senate Republican proposed budget can be found online.<ref>[http://www.washingtonpolicy.org/sites/default/files/GOP%20budget%20summary.pdf 2012 Summary Republican Senate Budget Proposal]</ref>.  It appropriates more for K-12 & Higher Education combined than any other budget proposal.<ref>[https://mail.google.com/mail/?ui=2&view=bsp&ver=ohhl4rw8mbn4 The Washington Policy Center "Summary of Senate GOP budget proposal" March 2, 2012]</ref>
+
 
+
Senate Democrats release their budget on Feb. 28, 2012, and it can be found online.<ref>[http://leap.leg.wa.gov/leap/Budget/Detail/2012/SOBill0228.pdf Senate Democrat 2012 Budget]</ref>.  Now, both chambers, along with the governor, will craft a compromise. The legislative session is scheduled to end on March 8.<ref name=accounting/>
+
A comparison of the plans:<Ref>[http://www.washingtonpolicy.org/blog/post/senate-democrat-budget-does-not-resolve-structural-spending-problems Washington Policy Center "Senate Democrat budget does not resolve structural spending problems" Feb. 28, 2012]</ref>
+
{|class=wikitable
+
! Source
+
! Spending
+
! Reserves
+
! % of Spending in the Reserves
+
 
|-
 
|-
|Senate Democrats|| $30.8 billion|| $369 million ||1.2%
+
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 
|-
 
|-
|House Democrats||$30.7 billion||$504 million ||1.6%
+
|2013 || $7,656 || $0 || $0 || $0 || $8,116 || $15,772 || $2,262.38
 
|-
 
|-
| House Republicans||$30.5 billion||$651 million ||2.1%  
+
|2012 || $7,225 || $0 || $0 || $0 || $7,649 || $14,874 || $2,157.12
 +
|-
 +
|2011 || $7,154 || $0 || $0 || $0 || $7,494 || $14,648 || $2,147.33
 +
|-
 +
|2010 || $6,840 || $0 || $0 || $0 || $7,356 || $14,196 || $2,105.53
 +
|-
 +
|2009 || $7,330 || $0 || $0 || $0 || $6,687 || $14,017 || $2,103.33
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''4.45%''' || align="center" style="background-color:black; color:white"|'''N/A'''|| align="center" style="background-color:black; color:white"| '''N/A''' || align="center" style="background-color:black; color:white"|'''N/A''' ||align="center" style="background-color:black; color:white"| '''21.37%''' || align="center" style="background-color:black; color:white"|'''12.52%''' || align="center" style="background-color:black; color:white"|'''7.56%'''
 +
|-
 +
|align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 
|}
 
|}
  
'''House general fund budget proposals'''
+
==State budgets by year==
 +
{{Budget bill box
 +
|State = Washington
 +
|Year = 2014
 +
|Link =http://apps.leg.wa.gov/billinfo/summary.aspx?bill=5034 SB 5034
 +
|Introduced =January 15, 2013
 +
|Days =
 +
|State House =April 12, 2013
 +
|Vote lower house =54-43
 +
|State Senate =June 8, 2013
 +
|Vote upper house =25-23
 +
|Conference =June 28, 2013
 +
|Conference upper house vote =44-4
 +
|Conference lower house vote =81-11
 +
|Governor = [[Christine Gregoire]]
 +
|Signed =June 30, 2013
 +
|Vetoed =Partial
 +
}}
 +
{{See budget bill|Link=[http://apps.leg.wa.gov/billinfo/summary.aspx?bill=5034 SB 5034]}}
 +
===Fiscal year 2014===
 +
The state's 2013-2014 biennial budget bill passed both chambers of the [[Washington State Legislature]] in a second special session on June 28, 2013. [[Governor of Washington|Governor]] [[Christine Gregoire]] signed the budget into law on June 30, 2013 after making some partial vetoes, including cutting joint legislative audit and review committee studies on performance indicators and electricity cost impacts from renewable energy standards as well as a number of studies that were required from state agencies without providing funding for those studies.<ref>[http://apps.leg.wa.gov/billinfo/summary.aspx?bill=5034 ''Washington State Legislature'', "SB 5034 - 2013-14," accessed May 5, 2014]</ref><ref>[http://apps.leg.wa.gov/documents/billdocs/2013-14/Pdf/Bills/Vetoes/Senate/5034-S.VTO.pdf ''Governor of Washington'', "Veto Message on 3ESSB 5034," June 30, 2013]</ref>
  
House Republicans led the charge, and released the first legislative budget proposal of the 2012 Session on Feb. 17, 2012.  It totaled $1.6 billion and included:<ref>[http://www.washingtonpolicy.org/blog/post/house-gop-releases-budget-proposal The Washington Policy Center "House GOP releases budget proposal" Feb. 17, 2012]</ref>
+
===Fiscal year 2013===
*$63 million in fund transfers
+
::''See also: [[Washington state budget (2012-2013)]]
*$160 million in unspent agency funds (known as 'reversions')
+
*$64 million in local government distributions
+
*$336 million in savings from reduced caseloads
+
*$840 million in spending reductions
+
*$36 million from repealing three tax exemptions
+
*$26 million in the sale of surplus property
+
*$651 million left in reserves
+
  
In Feb. 2012, that lawmakers were told of a $200 million windfall due to reduced demands for state services.<Ref name=good>[http://seattletimes.nwsource.com/html/localnews/2017479249_budget11m.html The Seattle Times "State budget writers get good news with $200M windfall" Feb. 10, 2012]</ref>
+
===Fiscal year 2012===
 +
::''See also: [[Washington state budget (2011-2012)]]
  
The House Democrats released their proposed budget on Feb. 21, 2012, and a summary of it can be found [http://leap.leg.wa.gov/leap/Budget/Detail/2012/HOOverview0221.pdf 2012 House Democratic Budget Summary]</ref> and the full 233 page proposal is also available<ref>[http://leap.leg.wa.gov/leap/Budget/Detail/2012/HOBill0221Hunter.pdf  2012 House Democratic Budget]</ref>.  It delays $405 million in payments to K-12 education. One significant difference between the House Republican and Democrat budget proposal is the amount spent and ending fund balance. Republican's leave a reserve of $651 million with $30.542 billion spent (reserve is 2.1% of spending) while Democrats leave a $504 million reserve with $30.661 billion spent (reserve is 1.6% of spending). For budget stability, a reserve of at least 5% is recommended.<ref>[http://www.washingtonpolicy.org/blog/post/house-democrat-budget-relies-405-million-gimmick The Washington Policy Center "House Democrat budget relies on $405 million gimmick" Feb. 21, 2012]</ref>  The Democrats' proposal does not propose raising sales tax but it permits local governments to boost taxes.<ref name=accounting>[http://seattletimes.nwsource.com/html/localnews/2017559849_housebudget22m.html The Seattle Times "Accounting gimmick is big part of state House budget moves" Feb. 21, 2012]</ref>
+
===Fiscal year 2011===
 +
::''See also: [[Washington state budget (2010-2011)]]
  
'''Proposed Tax Increase'''
+
===Fiscal year 2010===
 +
::''See also: [[Washington state budget (2009-2010)]]
  
Sen. [[Ed Murray|Ed Murray]], the Senate's chief budget writer, introduced a plan on Feb. 6, 2012, that would place a temporary sales tax increase on the ballot this year, as well as a permanent capital gains tax that would be dedicated to paying for education for the long term.  The plan would also raise some business and occupation preferential rates, up the cigarette tax, and reduce the sales tax break for cars purchased from auto dealers, which Marray says are necessary to prevent cuts to education.  The revenue votes that Murray wants to take up in the Legislature require a two-thirds vote.<ref>[http://www.cbsnews.com/8301-505245_162-57372457/key-wash-lawmaker-wants-vote-on-capital-gains-tax/ CBSNews.com "Key Wash. lawmaker wants vote on capital gains tax" Feb. 7, 2012]</ref>
+
==Historical spending==
 +
State budget historical spending below was compiled by the [[National Association of State Budget Officers]]. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).<ref name=expenditures2013/><ref name=expenditures2012/>
 +
{{State budget historical spending
 +
|State=Washington
 +
|totalbudgets= 3
 +
|2011-2012genfund=15279
 +
|2011-2012otherfund=9713
 +
|2011-2012fedfund=8049
 +
|2011-2012bonds=1902
 +
|2011-2012budgettotal=34943
 +
|2010-2011genfund=14823
 +
|2010-2011otherfund=7784
 +
|2010-2011fedfund=8989
 +
|2010-2011bonds=2025
 +
|2010-2011budgettotal=33621
 +
|2009-2010genfund=15036
 +
|2009-2010otherfund=7284
 +
|2009-2010fedfund=9238
 +
|2009-2010bonds=2029
 +
|2009-2010budgettotal=33587
 +
}}
  
===Special Session in November-December 2011===
+
==State debt==
 +
According to a January 2014 report by the nonprofit organization [[State Budget Solutions]], Washington had a state debt of over $89 billion. Its state debt per capita was $12,988. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded [[public pensions]].<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-fourth-annual-state-debt-report ''State Budget Solutions'', "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014]</ref><ref>[http://washingtonexaminer.com/exography-unfunded-public-employee-pensions-are-driving-state-debts-skyward/article/2542548 ''Washington Examiner'', "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014]</ref>
 +
{{State debt box
 +
|State = Washington
 +
|totaldebt=$89,579,477,000
 +
|totaldebtrank=16
 +
|percapdebt=$12,988
 +
|percapdebtrank=32
 +
|expenditures = $24,992,000,000
 +
|expendituresrank =32
 +
}}
  
Just months after passing a budget with $4 billion in cuts, the state announced that tax collections for the FY21012-13 two-year budget period were projected to be $1.4 billion less than expected through the end of FY2013, which Gov. Gregoire said she viewed as a $2 billion deficit given the need to leave money in reserve.<ref name=less>[http://seattletimes.nwsource.com/html/localnews/2016215473_staterevenue16m.html The Seattle Times "Latest forecast calls for $1.4 billion less; more cuts expected" Sept. 15, 2011]</ref>  In light of the shortfall, the governor told state agencies to prepare for another round of cuts which could be up to 10 percent of the agencies' budgets and total $1.7 billion.<Ref name=ready/> but she also said that she would not make across the board cuts.<ref name=less/>  The governor called a special session of the legislature that began on November 28, 2011.
+
===Public pensions===
 +
::''See also: [[Washington public pensions]] and [[Washington public employee salaries]]''
  
Gov. Gregoire proposed $2 billion in FY2012 budget savings on October 27, 2011, prior to the legislature's special session that began in November 2011.  Although the governor had hoped the legislature would complete it's work by the end of December 2011, lawmakers said they would likely not be done until sometime in 2012.<ref>[http://seattletimes.nwsource.com/html/politics/2016920964_slowspecialsession03.html The Seattle Times "Legislature slower on budget than Gregoire wants" Dec. 2, 2011]</ref>
+
A 2012 report from the Pew Center on the States noted that Washington's pension system was funded at 95 percent at the close of fiscal year 2010, well above the 80 precent funding level experts recommend. Nevertheless, Pew designated the state's pension system as needing "improvement" due to its gradually declining funding level.<ref name=wapew>[http://www.pewstates.org/research/state-fact-sheets/widening-gap-update-washington-85899399356 ''Pew Center on the States'' "Widening Gap Update: Washington," accessed November 21, 2013]</ref>
  
The special session ended in December 2011 after the legislature approved a $480 million budget bill, known as the "early action bill" that makes less than $200 million in actual cuts and relies on shifting funds to fill the budget gap.<ref name=paves>[http://www.theolympian.com/2011/12/13/1912497/house-oks-480-million-budget-gap.html The Olympian "Approval of $480M budget gap bill paves way for special session to end" Dec. 13, 2011]</ref> The Early Action bill makes none of the cuts recommended by the governor<ref>[http://www.spokesman.com/stories/2011/dec/13/budgeters-put-tough-decisions-on-hold/relies The Spokesman-Review "Budgeters put tough decisions on hold" Dec. 13, 2011]</ref> but instead on money from a variety of sources, including:
+
The funding ratio for the state's pension system increased from 92.88 percent in fiscal year 2007 to 93.07 percent in fiscal year 2012, a 0.19 percent bump. Unfunded liabilities increased from approximately $3.9 billion in fiscal year 2007 to roughly $4.7 billion in fiscal year 2012.  
* $82 million in unspent money from the previous biennium<ref name=paves/>
+
* $50.6 million from quicker conversions of unclaimed property by the Department of Revenue<ref name=paves/>
+
* $50 million in school-bus spending is delayed until 2013<ref name=nothing/>
+
* $38.4 million comes from additional federal welfare aid allocated to the state<ref name=paves/>
+
* $752,000 saved from limits that will end “over-the-counter” replacement of electronic-benefits cards for welfare clients<ref name=paves/>
+
* $22.6 million would come from a three-year delay in the law changing when people mental-health disorders are detained or committed involuntarily.<ref name=paves/>
+
  
The bill does not address the whole $1.5 billion shortfall as the governor asked the legislature to do.<ref>[http://publicola.com/2011/12/14/i-wouldnt-put-a-lot-of-faith-in-the-idea/?utm_source=RSS+Feed&utm_medium=feed&utm_campaign=Feed:+publicola+%28PubliCola%29 Publicola "“I Wouldn’t Put a Lot of Faith in the Idea”" Dec. 14, 2011]</ref> The governor's budget director, Marty Brown, said, "We're kind of disappointed."<ref name=nothing>[http://seattletimes.nwsource.com/html/editorials/2017008040_edit14budget.html The Seattle Times "State lawmakers' disappointing budget effort 'better than nothing'" Dec. 13, 2011[</ref>
+
===Credit ratings===
 +
States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.<ref name=credit>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 ''Stateline: The Daily News Service of The Pew Charitable Trusts'', "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012]</ref>
  
Rep. [[Ross Hunter|Ross Hunter]], the Democrat in charge of the House budget writing, said the funding can be revisited after lawmakers return Jan. 9 for a regular, 60-day session to close the remainder of the budget gap.<ref name=paves/>
+
The table below lists the Standard and Poor's credit ranking for Washington from 2001 to 2012 (grades from surrounding states are provided for additional context).<ref name=credit/>
  
After the special session, the governor proposed that the state lottery be privatized to generate additional money for education.  The lottery brought in roughly $523 million in revenue in fiscal year 2011, and approximately $150 million went to the state, mostly for education, and the remainder went toward operation of the lottery.<ref>[http://seattletimes.nwsource.com/html/localnews/2017026127_lottery16m.html The Seattle Times "Gregoire proposes privatizing the state lottery" Dec. 1, 2011]</ref>
+
{| class="wikitable" style="text-align:center; width:55%;"
 
+
! colspan="6" align="center" style="background-color:#008000; color: white;" | S&P credit ratings from 2001 to 2012
===State budget as initially passed===
+
 
+
Gov. Gregoire signed the $32 billion FY2012-13 biennial budget on June 15, 2011.<ref name=grits>[http://www.wenatcheeworld.com/news/2011/jun/16/gregoire-grits-teeth-signs-budget-that-unravels/ The Wenatchee World "Gregoire grits teeth, signs budget that unravels her work" June 16, 2011]</ref>  The budget cuts in the plan add up to $4.5 billion over the next two years.  Gregoire did veto many small sections of the budget, including a study that would have examined the feasibility of requiring direct deposit for state employees, a $100,000 plan to create a commission examining whether state agencies were duplicating services.<ref name=signs/>  The budget eliminated $4 billion from spending and shifted money from various accounts.<Ref name=ready>[http://seattletimes.nwsource.com/html/localnews/2015856380_budgetcuts09m.html The Seattle Times "Gregoire tells state to get ready for more cuts" Aug. 9, 2011]</ref> 
+
 
+
'''Education Cuts'''
+
 
+
The spending plan reduces salaries for teachers and classified educational staff by 1.9 percent while slashing pay for administrative staff by 3 percent. It suspends programs designed to keep class sizes low.<ref name=signs>[http://seattletimes.nwsource.com/html/localnews/2015331639_apwagregoirebudget2ndldwritethru.html The Seattle Times "A somber Gregoire signs budget with education cuts" June 15, 2011]</ref>
+
 
+
In Jan. 2012, the Washington Supreme Court ruled that the state has violated the state Constitution by not properly fund basic K-12 education, and has ordered the Legislature to come up with a new system by 2018.<ref>[http://www.king5.com/news/education/Washington-Supreme-Court-education-ruling--136738528.html KING5.com "Supreme Court: Washington is failing its students" Jan. 5, 2012]</ref>
+
 
+
The governor and legislators approved double-digit tuition hikes in each of the next two years to offset their $532 million cuts<ref name=grits/> to higher education.<REf name=signs/>
+
 
+
'''Other Cuts'''
+
 
+
The budget also includes a 3 percent reduction in pay for state employees - something enforced through unpaid leave. Some retired teachers and state employees will no longer get automatic cost-of-living pension increases.
+
 
+
===Special Session in May 2011===
+
The governor said that she would call a special session of the legislature in November 2011, after the next revenue forecasts are released.  It will be the second special session to deal with budget deficits of the year.<Ref>[http://seattletimes.nwsource.com/html/localnews/2016279434_session22m.html The Seattle Times "Governor to call 30-day special legislative session" Sept. 21, 2011]</ref>
+
 
+
The legislature did not pass a budget in the 105-day regular session and began a its first, month-long special session of the year to finish the budget on April 26, 2011. On May 23, 2011, two days before the end of the special session, legislative leaders announced a tentative deal to close a $5.1 billion budget shortfall.<ref>[http://seattletimes.nwsource.com/html/localnews/2015130666_legislature24m.html The Seattle Times "State budget OK still in doubt | Legislature 2011" May 23, 2011]</ref> The compromise deal includes cuts in nearly every corner of government, s1.9 percent cut for teacher pay and a 3 percent cut for other K-12 employees to save $179 million  and cutting 3 percent in state employee salaries through unpaid leave will save an additional $177 million.<ref>[The Seattle Times "Wash. budget deal includes teacher salary cuts" May 24, 2011]</ref>  Both chambers of the legislature approved the budget on May 25, 2011.<ref name=passes>[http://seattletimes.nwsource.com/html/localnews/2015149811_legislature26m.html The Seattle Times "Bipartisan state budget passes" May 25, 2011]</ref>
+
 
+
The two-year, $32 billion budget makes $4 billion in cuts to higher education, social services and health care programs.<ref name=passes/>
+
 
+
A tax-amnesty program that permitted companies to pay of back taxes without interest or penalty generated $263 million, $182 million more than expected.  The governor and legislative leaders said the tax-amnesty dollars should help lawmakers reach an agreement by the end of the special session.  It also means that  lawmakers no longer felt they needed to privatize the state's liquor wholesale-distribution system to generate funds for the state budget.<ref>[http://seattletimes.nwsource.com/html/localnews/2014950674_politicsnw04m.html  The Seattle Times "Tax-amnesty program raises hopes of a budget deal" May 3, 2011]</ref>
+
 
+
===Legislative Budget===
+
 
+
The Senate on April 18, 2011, approved its proposed two-year state budget that reduces spending by $4.8 billion and cuts funding for K-12 education in an attempt to fill the $5.1 billion deficit.<ref>[http://www.thenewstribune.com/2011/04/19/1631606/senate-approves-state-budget.html#ixzz1K1QGGBjA The News Tribune "Senate approves state budget" April 19, 2011]</ref>The Senate plan reduced K-12 education funding by $250 million, which budget writers assume would come from a 3% wage cut for teachers.  It also cuts $95 million from school districts based on class attendance.<ref>[http://www.seattlepi.com/news/article/Gregoire-opposes-Senate-plan-to-cut-education-1336212.php#ixzz1JT5MWbcy The Spokesman Review "Gregoire opposes Senate plan to cut" April 13, 2011]</ref>  The Senate budget includes more than $450 million in fund transfers.<ref name=advances>[http://www.businessweek.com/ap/financialnews/D9MMQD780.htm Businessweek "WA Senate advances its 2-year budget, cuts $4.8B" April 19, 2011]</ref>  The Basic Health Plan, the state's health care program for the poor, would lose $122 million.<ref name=advances/>  In addition, the Senate's plan also halts automatic increases to state employee retirement plans to save $361 million.<ref name=advances/>
+
 
+
The House budget reduces spending by $4.4 billion.<ref name=advances/>  It cuts higher education by $482 million.  It also cuts state support for higher education to the amount spent 20 years ago, when there were 32,000 fewer students at the six four-year colleges.  The University of Washington would lose $200 million for the 2011-2013 biennium, a 30 percent cut.<ref>[http://www.businessweek.com/ap/financialnews/D9MHGVEG0.htm Businessweek "Wash. higher ed takes a beating in upcoming budget" April 11, 2011]</ref>
+
 
+
'''Capital Budget'''
+
 
+
On April 4, 2011, the Washington House released its $3.13 billion construction budget for the biennium. It includes construction grants of $718.5 million for K-12 schools and $626.7 million for projects at colleges and universities. Approximately a fourth of the capital budget, $831.9 million, is intended for renovation and preservation projects for public agencies.  It could generate over 50,000 new construction jobs in the state.<ref name=capital>[http://seattletimes.nwsource.com/html/localnews/2014685237_capitalbudget05.html The Seattle Times "House unveils $3.13B capital-budget proposal" April 4, 2011]</ref>
+
 
+
===Governor's Proposed Budget===
+
Gov. Chris Gregoire proposed a state budget.  The proposed budget is based on a shortfall of nearly $5 billion.  It would would eliminate the arts commission and the state food-assistance program, reduce a host of other health and social-service programs and cut funds for higher education.<ref>[http://seattletimes.nwsource.com/html/localnews/2014489191_apwabudgetshortfall1stldwritethru.html The Seattle Times "Wash. budget shortfall could be worse than thought" March 13, 2011]</ref>  The governor also said she intended to consolidate 21 state agencies down to nine to save $22 million.<ref>[http://www.thenewstribune.com/2011/03/06/1572301/consolidation-bills-meet-opposition.html The News Tribune "Government consolidation bills meet opposition" March 6, 2011]</ref>
+
 
+
====Education====
+
 
+
The governor proposed spending $13.8 billion on education over the next biennium, an increase over the prior budget, most of which stems from the fact that the state is expecting more students.  Those funds are still about $1 billion short of the level that would keep schools "treading water."
+
 
+
Gregoire's budget includes increasing funds for school-bus transportation, but cutting a bus-replacement fund by an equal amount. She also proposed reducing or eliminating everything from gifted education to bonuses for teachers who earn the prestigious National Board Certification<ref>[http://seattletimes.nwsource.com/html/localnews/2014227029_k12cuts15m.html The Seattle Times "The Budget Breakdown: State schools brace for deeper cuts: 'No easy choices left'" Feb. 15, 2011]</ref>
+
 
+
====Spending====
+
The governor's budget expenditures break down as follows<ref>[http://www.ofm.wa.gov/budget11/highlights/proposed_budget_expenditures.pdf Proposed Budget Expenditures Washington Office of Financial Management]</ref>:
+
 
+
{| class="wikitable"
+
 
|-
 
|-
! Category
+
! valign="bottom" style="background-color:#444; color: white;" |
! Dollars in Millions
+
! valign="bottom" style="background-color:#444; color: white;" | '''Washington'''
 +
! valign="bottom" style="background-color:#444; color: white;" | California
 +
! valign="bottom" style="background-color:#444; color: white;" | Nevada
 +
! valign="bottom" style="background-color:#444; color: white;" | Oregon
 
|-
 
|-
|Public Schools || $13,746
+
| 2012 || AA+ || A- || AA || AA+
 
|-
 
|-
|Higher Education||2,677
+
| 2011 || AA+ || A- || AA || AA+
 
|-
 
|-
|Social & Health Services||5,768
+
| 2010 || AA+ || A- || AA+ || AA
 
|-
 
|-
|Healthcare Authority||4,650
+
| 2009 || AA+ || A || AA+ || AA
 
|-
 
|-
|Corrections||1,693
+
| 2008 || AA+ || A+ || AA+ || AA
 
|-
 
|-
|Bond Retirement & Interest||1,952
+
| 2007 || AA+ || A+ || AA+ || AA
 
|-
 
|-
|General Government||829
+
| 2006 || AA || A+ || AA+ || AA-
 
|-
 
|-
|Natural Resources||332
+
| 2005 || AA || A || AA || AA-
 
|-
 
|-
|All Other*||477
+
| 2004 || AA || A || AA || AA-
 +
|-
 +
| 2003 || AA+ || BBB || AA || AA-
 +
|-
 +
| 2002 || AA+ || A || AA || AA
 +
|-
 +
| 2001 || AA+ || A+ || AA || AA
 
|-
 
|-
|Total||$32,124
 
 
|}
 
|}
<small><nowiki>*</nowiki>"Other" includes Other Education, Transportation, Contributions to Retirement Systems and Other Appropriations.</small>
 
  
 +
==Federal aid to state budget==
 +
::''See also: [[Federal aid to budgets in the 50 states]]''
 +
The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.<ref name=federalaid>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=COG_2012_FIN009&prodType=table ''United States Census Bureau'', "State Government Finances: 2012," accessed February 24, 2014]</ref>
  
==Budget transparency==
+
State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, [[Mississippi state budget#Federal aid to state budget|Mississippi]] received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, [[Alaska state budget#Federal aid to state budget|Alaska]] received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.<ref name=federalaid/>
  
The State of Washington now has an official spending database online, thanks to the passage of [[Washington Senate Bill 6818, Promoting Transparency in State Expenditures]], a bill that had mandated the creation of such a database by January 1, 2009.<ref>[http://apps.leg.wa.gov/documents/billdocs/2007-08/Pdf/Bills/Senate%20Passed%20Legislature/6818.PL.pdf Washington Senate Bill 6818, Promoting Transparency in State Expenditures]</ref>  The Washington State Fiscal Information site is available.<ref>[http://fiscal.wa.gov/Default.aspx]</ref>  Searchable state employee compensation data was added to the website in September 2011 and can be found online<ref>[http://fiscal.wa.gov/FRViewer.aspx?Rpt=2010Salaries Washington State Employee Compensation Database]</ref>.
+
{| class="wikitable" style="text-align:center; width:50%;"
 
+
! colspan="4" align="center" style="background-color:#008000; color: white;" | Federal aid to state budgets in 2012
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
+
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal aid as % of general revenue
 +
! valign="bottom" style="background-color:#444; color: white;" | Total federal aid
 +
! valign="bottom" style="background-color:#444; color: white;" | National rank
 +
|-
 +
| '''Washington''' || '''28.59%''' || '''$9,743,127,000''' || '''37'''
 +
|-
 +
| [[California state budget|California]] || 27.17% || $54,145,284,000 || 40
 +
|-
 +
| [[Nevada state budget|Nevada]] || 25.48% || $2,798,426,000 || 44
 +
|-
 +
| [[Oregon state budget|Oregon]] || 36.09% || $7,830,552,000 || 12
 +
|-
 +
|}
 +
 +
===Stimulus===
 +
Washington received $7.15 billion in federal stimulus funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery.gov'', "Stimulus Spending by State," accessed February 21, 2014]</ref>
  
{|style="width:100%" class=wikitable
+
==Budget transparency==
|+ '''Criteria for evaluating spending databases'''
+
{| class="wikitable" style="float:right; margin:1em 1em 1em 1em; text-align:center; width:15%;"
!State Database!![[Criteria for evaluating databases|Searchability]]!![[Criteria for evaluating databases|Grants]]!![[Criteria for evaluating databases|Contracts]]!![[Criteria for evaluating databases|Line Item Expenditures]]!![[Criteria for evaluating databases|Dept/Agency Budgets]]!![[Criteria for evaluating databases|Public Employee Salary]]!!
+
! colspan="2" align="center" style="background-color:#008000; color: white;" | Transparency evaluation
 
|-
 
|-
|align=center|[http://fiscal.wa.gov/Default.aspx Washington State Fiscal Information]||{{yes}}||{{no (Sunshine Review)}}||{{no (Sunshine Review)}}||{{yes}}||{{yes}}||{{yes}}||
+
! valign="bottom" style="background-color:#444; color: white;" |
 +
! valign="bottom" style="background-color:#444; color: white;" | Washington State Fiscal Information
 +
|-
 +
|[[Criteria for evaluating databases|Searchability]] || {{Yes (Sunshine Review)}}  
 +
|-
 +
|[[Criteria for evaluating databases|Grants]] || {{No (Sunshine Review)}}  
 +
|-
 +
|[[Criteria for evaluating databases|Contracts]] || {{No (Sunshine Review)}}  
 +
|-
 +
|[[Criteria for evaluating databases|Line item expenditures]] || {{Yes (Sunshine Review)}}  
 +
|-
 +
|[[Criteria for evaluating databases|Dept./agency budgets]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Public employee salaries]] || {{Yes (Sunshine Review)}}  
 +
|-
 +
|colspan="2"|<small>Last evaluated in 2011.</small>
 
|}
 
|}
 +
::''See also: [[Evaluation of Washington state website]] and [[Constitutional provisions regarding reading of bills]]''
  
:: ''See also: [[Evaluation of Washington state website]]''
+
An online spending database was created for the state after the passage of Senate Bill 6818, a bill that had mandated the creation of such a database by January 1, 2009.<ref>[http://apps.leg.wa.gov/documents/billdocs/2007-08/Pdf/Bills/Senate%20Passed%20Legislature/6818.PL.pdf ''Washington State Legislature'', "Washington Senate Bill 6818, Promoting Transparency in State Expenditures," 2008]</ref> The Washington State Fiscal Information site can be found [http://fiscal.wa.gov/Default.aspx here]. Searchable state employee compensation data was added to the website in September 2011 and can be found [http://fiscal.wa.gov/FRViewer.aspx?Rpt=2010Salaries here].
  
===Multi-Measure Budget Transparency Profile===
+
The table to the right is helpful in evaluating the level of transparency provided by the [http://fiscal.wa.gov/Default.aspx Washington State Fiscal Information website].
 
+
The [http://igpa.uillinois.edu/ Institute of Government and Public Affairs] at the [http://www.uillinois.edu/ University of Illinois] has created a [http://igpa.uillinois.edu/system/files/Washington_Profile_IGPA_093011.pdf multi-measure transparency profile for Washington], which measures state transparency as of September 2011 using indicators from a range of organizations, including Sunshine Review.  These indicators measure both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.
+
 
+
In addition to the individual state profile, IGPA offers a [http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf 50-state comparison] and [http://igpa.uillinois.edu/content/state-transparency-profiles profiles for other states].
+
===U.S. PIRG "Following the Money" report===
+
{{Following the Money 2014 Advancing States|State=Washington|Grade=B|Score=85|Level=advancing}}
+
  
==Budget background==
+
===Multi-measure budget transparency profile===
Washington currently operates on a biennium budget.  The biennium includes a 24-month period from July 1st of odd-numbered years to June 30th of odd-numbered years, such as the 2009-11 biennium, which runs from July 1, 2009 to June 30, 2011. According to state law the Governor is required to submit a budget recommendation by December.  
+
The Institute of Government and Public Affairs at the University of Washington created a multi-measure transparency profile for Washington, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/ ''Institute of Government and Public Affairs at University of Washington'', "Home page," accessed February 21, 2014]</ref><ref name=allstates>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf ''Institute of Government and Public Affairs at University of Washington'', "Budget Transparency Profiles - All 50 States," September 2011]</ref>
Although the biennium includes two fiscal years, an approved budget the [[Washington_Legislature|legislature]] can modify the budget through changes to the original appropriations. This can be done in any legislative session. Since 1979 the [[Washington_House_of_Representatives|House]] and the [[Washington_State_Senate|Senate]] enact revisions annually to the state’s biennial budget. These revisions are referred to as supplemental budgets.<ref>[http://www.ofm.wa.gov/reports/budgetprocess.pdf ''Washington Office of Financial Management'', "Washington State Budget Process," July 2009]</ref>  
+
  
The Economic and Revenue Forecast Council is composed of representatives from both the legislative and executive
+
IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Washington tied for 20th in the nation with 12 other states, earning five out of eight possible points.<ref name=allstates/>
branches. Each fiscal quarter, the Council adopts an official forecast of General Fund-State (GF-S) revenues for the current and (at some point) the ensuing biennia. These forecasts, together with any reserves left over from previous biennia, determine the financial resources available to support estimated expenditures.<ref>[http://www.ofm.wa.gov/reports/budgetprocess.pdf ''Washington Office of Financial Management'', "Washington State Budget Process," July 2009]</ref>
+
  
Sources of State Revenues − All Governmental Funds 2009-11 Biennium Estimates<ref>[http://www.ofm.wa.gov/reports/budgetprocess.pdf ''Washington Office of Financial Management'', "Washington State Budget Process," July 2009]</ref>
+
{| class="wikitable" style="text-align:center; width:55%;"
{| {{table}}
+
! colspan="2" align="center" style="background-color:#008000; color: white;" | Washington - IGPA score for budget process, contents and disclosure
| Taxes||$32.2 billion
+
 
|-
 
|-
| Federal Grants||$19.5 billion
+
! valign="bottom" style="background-color:#444; color: white;" | Budget transparency indicator
 +
! valign="bottom" style="background-color:#444; color: white;" | Yes or no?
 
|-
 
|-
| Licenses, Permits, Fees||$1.9 billion
+
| Performance measures || {{Yes}}
 
|-
 
|-
| Charges and Miscellaneous Revenues||$18.2 billion
+
| "Generally Accepted Accounting Principles" budget || {{no (Sunshine Review)}}
 
|-
 
|-
| '''Total'''||'''$71.8 billion'''
+
| Multi-year forecasting || {{Yes}}
 +
|-
 +
| Annual cycle || {{no (Sunshine Review)}}
 +
|-
 +
| Binding revenue forecast || {{Yes}}
 +
|-
 +
| Legislative revenue forecast || {{Yes}}
 +
|-
 +
| Non-partisan staff || {{No (Sunshine Review)}}
 +
|-
 +
| Constitution or statutory tax/spend limitations || {{Yes}} (statutory)
 +
|-
 +
| '''TOTAL''' || '''5'''  
 
|-
 
|-
|
 
 
|}
 
|}
 +
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref name=allstates/>
 +
 +
===U.S. PIRG "Following the Money" report===
 +
{{Following the Money 2014 Advancing States|State=Washington|Grade=B|Score=85|Level=advancing}}
  
 
==Accounting principles==
 
==Accounting principles==
{{main|Washington government accounting principles}}
+
::''See also: [[Washington government accounting principles]]''
The [[Washington State Auditor]] looks at financial information and compliance with state, federal and local laws on the part of all local governments, including schools, and all state agencies, including institutions of higher education. The State Auditor's Office publishes its audit reports online.<ref>[http://www.sao.wa.gov/EN/Reports/Pages/default.aspx Washington State Auditor's Office Audit Reports]</ref> The State Auditor's Office is established in the state's Constitution as part of the executive branch of state government. Washington citizens elect the State Auditor to four‑year terms. Brian Sonntag has been State Auditor since first elected in 1992.<ref>[http://www.sao.wa.gov/EN/Pages/default.aspx ''Washington State Auditor's Office Web site'', retrieved November 17, 2009]</ref>
+
The [[Washington State Auditor]] looks at financial information and compliance with state, federal and local laws on the part of all local governments, including schools, and all state agencies, including institutions of higher education. The State Auditor's Office publishes its audit reports online, and they can be found [http://www.sao.wa.gov/EN/Reports/Pages/default.aspx here]. The State Auditor's Office was established in the state's [[Washington Constitution|Constitution]] as part of the executive branch of the state government. Washington citizens elect the State Auditor to four‑year terms. Brian Sonntag has been State Auditor since first elected in 1992.<ref>[http://www.sao.wa.gov/EN/Pages/default.aspx ''Washington State Auditor's Office Website'', accessed November 17, 2009]</ref>
  
[http://www.truthinaccounting.org/ The Institute for Truth in Accounting] (IFTA) rates Washington “Timely” in filing the state’s [[Comprehensive Annual Financial Report]] (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Washington's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Washington's [http://www.ofm.wa.gov/cafr/ CAFRs] are publications of the [http://www.ofm.wa.gov/default.asp Washington Office of Financial Management] in accordance with  Revised Code of Washington 43.88.027. [http://www.ofm.wa.gov/about/management.asp Victor A. Moore] was appointed Director of OFM in January 2005. The Office of Financial Management:<ref>[http://www.ofm.wa.gov/default.asp ''Washington Office of Financial Management Web site'', retrieved November 17, 2009]</ref>
+
[http://www.truthinaccounting.org/ The Institute for Truth in Accounting] (IFTA) rates Washington “timely” in filing the state’s [[Comprehensive Annual Financial Report]] (CAFR) – the annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and six states as worst. IFTA does not consider Washington's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Washington's [http://www.ofm.wa.gov/cafr/ CAFRs] are publications of the [http://www.ofm.wa.gov/default.asp Washington Office of Financial Management] in accordance with  Revised Code of Washington 43.88.027. [http://www.ofm.wa.gov/about/management.asp Victor A. Moore] was appointed Director of OFM in January 2005. Duties of the Office of Financial Management include:<ref>[http://www.ofm.wa.gov/default.asp ''Washington Office of Financial Management Website'', accessed November 17, 2009]</ref>
* Plays a central role in budget planning, policy development, and fiscal administration for the executive branch.
+
* Playing a central role in budget planning, policy development, and fiscal administration for the executive branch.
* Prepares the executive budget proposal and monitors budget implementation.
+
* Preparing the executive budget proposal and monitoring budget implementation.
* Maintains state government's statewide accounting systems, central books of accounts, and financial databases while also providing accounting services to state agencies.
+
* Maintaining the state government's statewide accounting systems, central books of accounts, and financial databases while also providing accounting services to state agencies.
* Oversees statewide personal service contracting activities.
+
* Overseeing statewide personal service contracting activities.
* Conducts executive policy research and develops legislation to support the Governor's policy goals.
+
* Conducting executive policy research and developing legislation to support the governor's policy goals.
* Provides estimates of state and local population, monitors changes in the state economy and labor force, and conducts research on a variety of issues affecting the state budget and public policy.
+
* Providing estimates of state and local population, monitoring changes in the state economy and labor force and conducting research on a variety of issues affecting the state budget as well as public policy.
* Provides a comprehensive risk management program for all state agencies.
+
* Providing a comprehensive risk management program for all state agencies.
 
+
==Bond Rating==
+
Moody's Investors Service lowered its outlook on the state of Washington to negative from stable on Jan. 30, 2012, citing the magnitude of the state's revenue shortfall.<Ref>[http://online.wsj.com/article/BT-CO-20120130-710293.html The Wall Street Journal "Moody's Lowers Washington Outlook To Negative On Revenue Shortfall" Jan. 30, 2012]</ref>  A few days before that, Fitch Ratings warned that it could lower its rating on the state's general obligation bonds.<ref>[http://www.chicagotribune.com/news/sns-rt-us-economy-washingtonstate-budgettre80r01s-20120127,0,4785181.story The Chicago Tribune "Fitch warns Washington state over budget gap" Jan. 27, 2012]</ref>
+
===Credit Ratings===
+
<BR>
+
{| {{table}}
+
| align="center" style="background:#f0f0f0;"|'''Credit Rating'''
+
| align="center" style="background:#f0f0f0;"|'''Fitch'''
+
| align="center" style="background:#f0f0f0;"|'''Moody's'''
+
| align="center" style="background:#f0f0f0;"|'''S&P'''
+
|-
+
| Washington  ||AA+<ref name=credit>[http://www.tre.wa.gov/debtManagement/bondRatings.shtml Washington State Debt Management Credit Ratings. Accessed September 17, 2013]</ref>||Aa1<ref name=credit/>||AA+<ref>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 Pew Stateline Infographic on State Credit Ratings. Accessed September 17, 2013]</ref>
+
|-
+
|
+
|}
+
  
==Stimulus==
+
==Contact information==
Washington received $7.15 billion in federal stimulus funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State." Accessed September 17, 2013]</ref>
+
Office of Financial Management<br>
 +
P.O. Box 43113<br>
 +
Olympia, WA 98504-3113<br>
 +
360-902-0555<br>
 +
http://www.ofm.wa.gov/
  
==Public Employees==
+
==See also==
{{main|Washington public employee salaries}}
+
* [[Washington government sector lobbying]]
{{main|Washington public pensions}}
+
* [[Washington public pensions]]
According to 2008 Census data, the state of Washington and local governments in the state employed a total of 427,078 people.<ref name=census>[http://www2.census.gov/govs/apes/08stlwa.txt 2008 Washington Public Employment U.S. Census Data]</ref> Of those employees, 287,439 were full-time employees receiving a net pay of $1,403,475,485 per month and 139,639 were part-time employees paid $212,257,148 per month.<ref name=census/>  More than 49% of those employees, or 212,659 employees, were in education or higher education.<ref name=census/>
+
* [[Governor of Washington]]
 +
* [[Washington State Legislature]]
 +
* [[Washington State Senate]]
 +
* [[Washington House of Representatives]]
 +
* [[Washington State Auditor]]
  
 
==External links==
 
==External links==
{{colbegin|3}}
 
 
*[http://www.statebudgetsolutions.org/state/detail/washington State Budget Solutions, Washington]
 
*[http://www.statebudgetsolutions.org/state/detail/washington State Budget Solutions, Washington]
*[http://fiscal.wa.gov/Default.aspx www.fiscal.wa.gov]
+
*[http://fiscal.wa.gov/Default.aspx Washington State Fiscal Information]
 
*[http://media.herald-dispatch.com/data_library/wvpay.php Evergreen Freedom Foundation]
 
*[http://media.herald-dispatch.com/data_library/wvpay.php Evergreen Freedom Foundation]
 
*[http://www.washingtonpolicy.org/ Washington Policy Center]
 
*[http://www.washingtonpolicy.org/ Washington Policy Center]
Line 301: Line 414:
 
*[http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6818 Senate Bill 6818, Promoting Transparency in State Expenditures]
 
*[http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6818 Senate Bill 6818, Promoting Transparency in State Expenditures]
 
*[http://www.effwa.org/main/page.php Evergreen Freedom Foundation home page]
 
*[http://www.effwa.org/main/page.php Evergreen Freedom Foundation home page]
*Model transparency legislation from the [[American Legislative Exchange Council]] is available [http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf at this link.]
+
*[http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf American Legislative Exchange Council]
{{colend (Sunshine Review)}}
+
*[http://transformwabudget.ideascale.com/ Transforming Washington's Budget]
*[http://transformwabudget.ideascale.com/ Transforming Washington's Budget, where citizens can contribute their ideas.]
+
  
==Additional reading==
+
===Additional reading===
*[http://www.ofm.wa.gov/budget09/highlights/highlights.pdf Gov. Gregoire's 2009-2011 budget proposal]
+
*[http://uspirg.org/reports/usp/following-money-2014 ''U.S. PIRG'', "Report: Transparent & Accountable Budgets," April 8, 2014]
 +
*[http://www.nytimes.com/2014/02/03/us/battles-loom-in-many-states-over-what-to-do-with-budget-surpluses.html?hp&_r=0 ''The New York Times'', "Battles loom in many states over what to do with budget surpluses," February 3, 2014]
 +
*[http://www.cbpp.org/cms/index.cfm?fa=view&id=3067 ''Center on Budget and Policy Priorities'', "Policy Basics: The ABCs of State Budgets," February 7, 2013]
  
 
==References==
 
==References==
Line 312: Line 426:
  
 
{{State budgets}}
 
{{State budgets}}
{{Washington (Sunshine Review)}}
+
{{Washington}}
  
 
[[category:Washington]]
 
[[category:Washington]]
[[category:Budget information by state]]
+
[[Category:Budget information by state]]

Revision as of 13:57, 5 May 2014

Washington state budget

Flag of Washington.png
Budget calendar:  Biennial
Current fiscal year:  2013-2014
State credit rating:  AA+ (as of May 2012)
Current governor:  Christine Gregoire
Financial figures
GF expenses[1]:  $33.2 billion
All funds expenses:  $15.6 billion (FY 2013 estimate)
Spending % change:  Green Arrow Up Darker.svg1.92%[2]
% from federal funding:  28.59%
State debt:  $89,579,477,000
Per capita state debt:  $12,988
Other state budgets
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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Washington, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Washington's total expenditures decreased by approximately $400 million, from $33.6 billion in 2009 to $33.2 billion in 2013. This represents an 1.19 percent decrease, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  1. Budget instruction guidelines are sent to state agencies in April.
  2. State agency budget requests are submitted in September.
  3. The governor submits his or her proposed budget to the Washington State Legislature on or before December 20.
  4. The legislature adopts a budget in April or May. A simple majority is required to pass a budget.
  5. The biennial budget cycle begins in July.

Washington is one of 44 states in which the governor has line item veto authority.[6]

The governor is required by statute to submit a balanced budget to the legislature. Though the legislature is not required to pass a balanced budget, state law does forbid expenditures without supporting revenues.[6]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[7]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."[7]
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."[7]
  • Federal funds: "Funds received directly from the federal government."[7]
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."[7]

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures**
Washington $15,633 $7,744 $7,809 $2,016 $33,202 $4,762.60
California $95,665 $81,299 $38,656 $12,261 $227,881 $5,944.85
Nevada $3,179 $2,918 $2,769 $27 $8,893 $3,187.30
Oregon $5,960 $7,452 $12,262 $132 $25,806 $6,566.30
**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Washington can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Washington 22.9% 17.8% 1.0% 12.1% 2.7% 8.4% 35.1%
California 19.9% 7.0% 3.8% 21.6% 5.4% 6.3% 36.0%
Nevada 23.6% 9.7% 3.2% 25.4% 3.8% 9.5% 24.9%
Oregon 14.0% 2.5% 0.7% 18.2% 3.9% 6.7% 54.1%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, expenditures on elementary and secondary education, public assistance, Medicaid, corrections and transportation decreased between 0.1 and 7.5 percent. During that same time period, expenditures on higher education increased by 4.1 percent. The table below details changes in expenditures from 2008 to 2012.[7][10][11][12][13] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
2012 22.9% 17.8% 1.0% 12.1% 2.7% 8.4% 35.1%
2011 23.3% 14.2% 1.4% 23.5% 2.9% 8.3% 26.3%
2010 24.4% 13.2% 1.4% 23.0% 3.2% 9.1% 25.8%
2009 24.6% 13.3% 1.2% 21.4% 3.4% 8.0% 28.0%
2008 23.1% 13.7% 1.3% 19.6% 3.7% 8.5% 30.2%
Change in % -0.20% 4.10% -0.30% -7.50% -1.00% -0.10% 4.90%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Washington $7,656 $0 $0 $0 $8,116 $15,772 $2,262.38
California $20,240 $63,901 $7,509 $1 $6,544 $98,195 $2,561.66
Nevada $919 $0 $0 $705 $1,463 $3,087 $1,106.40
Oregon $0 $6,300 $500 $0 $496 $7,296 $1,856.46
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][10] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Washington ($ in millions)[7][10]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $7,656 $0 $0 $0 $8,116 $15,772 $2,262.38
2012 $7,225 $0 $0 $0 $7,649 $14,874 $2,157.12
2011 $7,154 $0 $0 $0 $7,494 $14,648 $2,147.33
2010 $6,840 $0 $0 $0 $7,356 $14,196 $2,105.53
2009 $7,330 $0 $0 $0 $6,687 $14,017 $2,103.33
Change in % 4.45% N/A N/A N/A 21.37% 12.52% 7.56%
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

State budgets by year

Washington state budget -- 2014
Washington State Legislature
Text:SB 5034
Legislative history
Introduced:January 15, 2013
House:April 12, 2013
Vote (lower house):54-43
Senate:June 8, 2013
Vote (upper house):25-23
Conference:June 28, 2013
Conference vote (upper house):44-4
Conference vote (lower house):81-11
Governor:Christine Gregoire
Signed:June 30, 2013
Vetoed:Partial

DocumentIcon.jpg See budget bill: SB 5034

Fiscal year 2014

The state's 2013-2014 biennial budget bill passed both chambers of the Washington State Legislature in a second special session on June 28, 2013. Governor Christine Gregoire signed the budget into law on June 30, 2013 after making some partial vetoes, including cutting joint legislative audit and review committee studies on performance indicators and electricity cost impacts from renewable energy standards as well as a number of studies that were required from state agencies without providing funding for those studies.[14][15]

Fiscal year 2013

See also: Washington state budget (2012-2013)

Fiscal year 2012

See also: Washington state budget (2011-2012)

Fiscal year 2011

See also: Washington state budget (2010-2011)

Fiscal year 2010

See also: Washington state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[7][11]

Historical state budget spending in Washington ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $15,279 43.7% $9,713 27.8% $8,049 23% $1,902 5.4% $34,943
2010-2011 $14,823 44.1% $7,784 23.2% $8,989 26.7% $2,025 6% $33,621
2009-2010 $15,036 44.8% $7,284 21.7% $9,238 27.5% $2,029 6% $33,587
Averages: $15,046 44% $8,260.33 24% $8,758.67 26% $1,985.333 6% $34,050.33
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Washington had a state debt of over $89 billion. Its state debt per capita was $12,988. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[16][17]

Total state debt in Washington[18]
Type Totals U.S. rank
Total state debt $89,579,477,000 16
Per capita debt $12,988 32
State and other fund expenditures $24,992,000,000 32

Public pensions

See also: Washington public pensions and Washington public employee salaries

A 2012 report from the Pew Center on the States noted that Washington's pension system was funded at 95 percent at the close of fiscal year 2010, well above the 80 precent funding level experts recommend. Nevertheless, Pew designated the state's pension system as needing "improvement" due to its gradually declining funding level.[19]

The funding ratio for the state's pension system increased from 92.88 percent in fiscal year 2007 to 93.07 percent in fiscal year 2012, a 0.19 percent bump. Unfunded liabilities increased from approximately $3.9 billion in fiscal year 2007 to roughly $4.7 billion in fiscal year 2012.

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[20]

The table below lists the Standard and Poor's credit ranking for Washington from 2001 to 2012 (grades from surrounding states are provided for additional context).[20]

S&P credit ratings from 2001 to 2012
Washington California Nevada Oregon
2012 AA+ A- AA AA+
2011 AA+ A- AA AA+
2010 AA+ A- AA+ AA
2009 AA+ A AA+ AA
2008 AA+ A+ AA+ AA
2007 AA+ A+ AA+ AA
2006 AA A+ AA+ AA-
2005 AA A AA AA-
2004 AA A AA AA-
2003 AA+ BBB AA AA-
2002 AA+ A AA AA
2001 AA+ A+ AA AA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[21]

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[21]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Washington 28.59% $9,743,127,000 37
California 27.17% $54,145,284,000 40
Nevada 25.48% $2,798,426,000 44
Oregon 36.09% $7,830,552,000 12

Stimulus

Washington received $7.15 billion in federal stimulus funding between February 2009 and June 2013.[22]

Budget transparency

Transparency evaluation
Washington State Fiscal Information
Searchability Y
600px-Yes check.png
Grants N
600px-Red x.png
Contracts N
600px-Red x.png
Line item expenditures Y
600px-Yes check.png
Dept./agency budgets Y
600px-Yes check.png
Public employee salaries Y
600px-Yes check.png
Last evaluated in 2011.
See also: Evaluation of Washington state website and Constitutional provisions regarding reading of bills

An online spending database was created for the state after the passage of Senate Bill 6818, a bill that had mandated the creation of such a database by January 1, 2009.[23] The Washington State Fiscal Information site can be found here. Searchable state employee compensation data was added to the website in September 2011 and can be found here.

The table to the right is helpful in evaluating the level of transparency provided by the Washington State Fiscal Information website.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Washington created a multi-measure transparency profile for Washington, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[24][25]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Washington tied for 20th in the nation with 12 other states, earning five out of eight possible points.[25]

Washington - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget N
600px-Red x.png
Multi-year forecasting
{{{1}}}
Annual cycle N
600px-Red x.png
Binding revenue forecast
{{{1}}}
Legislative revenue forecast
{{{1}}}
Non-partisan staff N
600px-Red x.png
Constitution or statutory tax/spend limitations
{{{1}}}
(statutory)
TOTAL 5

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[25]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[26] According to the report, Washington received a grade of B and a numerical score of 85, indicating that Washington was an "advancing" state in terms of transparency regarding state spending.[26]

Accounting principles

See also: Washington government accounting principles

The Washington State Auditor looks at financial information and compliance with state, federal and local laws on the part of all local governments, including schools, and all state agencies, including institutions of higher education. The State Auditor's Office publishes its audit reports online, and they can be found here. The State Auditor's Office was established in the state's Constitution as part of the executive branch of the state government. Washington citizens elect the State Auditor to four‑year terms. Brian Sonntag has been State Auditor since first elected in 1992.[27]

The Institute for Truth in Accounting (IFTA) rates Washington “timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – the annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and six states as worst. IFTA does not consider Washington's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[28] Washington's CAFRs are publications of the Washington Office of Financial Management in accordance with Revised Code of Washington 43.88.027. Victor A. Moore was appointed Director of OFM in January 2005. Duties of the Office of Financial Management include:[29]

  • Playing a central role in budget planning, policy development, and fiscal administration for the executive branch.
  • Preparing the executive budget proposal and monitoring budget implementation.
  • Maintaining the state government's statewide accounting systems, central books of accounts, and financial databases while also providing accounting services to state agencies.
  • Overseeing statewide personal service contracting activities.
  • Conducting executive policy research and developing legislation to support the governor's policy goals.
  • Providing estimates of state and local population, monitoring changes in the state economy and labor force and conducting research on a variety of issues affecting the state budget as well as public policy.
  • Providing a comprehensive risk management program for all state agencies.

Contact information

Office of Financial Management
P.O. Box 43113
Olympia, WA 98504-3113
360-902-0555
http://www.ofm.wa.gov/

See also

External links

Additional reading

References

  1. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  10. 10.0 10.1 10.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  11. 11.0 11.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  13. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  14. Washington State Legislature, "SB 5034 - 2013-14," accessed May 5, 2014
  15. Governor of Washington, "Veto Message on 3ESSB 5034," June 30, 2013
  16. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  17. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  18. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  19. Pew Center on the States "Widening Gap Update: Washington," accessed November 21, 2013
  20. 20.0 20.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  21. 21.0 21.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  22. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  23. Washington State Legislature, "Washington Senate Bill 6818, Promoting Transparency in State Expenditures," 2008
  24. Institute of Government and Public Affairs at University of Washington, "Home page," accessed February 21, 2014
  25. 25.0 25.1 25.2 Institute of Government and Public Affairs at University of Washington, "Budget Transparency Profiles - All 50 States," September 2011
  26. 26.0 26.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  27. Washington State Auditor's Office Website, accessed November 17, 2009
  28. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  29. Washington Office of Financial Management Website, accessed November 17, 2009