Difference between revisions of "Washington state budget"

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(Expenditures by function)
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! valign="bottom" style="background-color:#444; color: white;" | Corrections
 
! 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;" | Transportation
! valign="bottom" style="background-color:#444; color: white;" | Other
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! valign="bottom" style="background-color:#444; color: white;" | Other**
 
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|'''Washington''' || '''22.9%''' || '''17.8%''' || '''1.0%''' || '''12.1%''' || '''2.7%''' || '''8.4%''' || '''35.1%'''
 
|'''Washington''' || '''22.9%''' || '''17.8%''' || '''1.0%''' || '''12.1%''' || '''2.7%''' || '''8.4%''' || '''35.1%'''
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|[[Oregon state budget|Oregon]] || 14.0% || 2.5% || 0.7% || 18.2% || 3.9% || 6.7% || 54.1%
 
|[[Oregon state budget|Oregon]] || 14.0% || 2.5% || 0.7% || 18.2% || 3.9% || 6.7% || 54.1%
 
|-
 
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|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
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|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]<br>'''Note**''': "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."<ref name=expenditures2013/></small>
 
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Revision as of 13:12, 4 August 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]
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
Note**: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[7]

Expenditure trends

From 2008 to 2012, expenditures on elementary and secondary education, public assistance, Medicaid, corrections and transportation decreased, with expenditures on Medicaid decreasing the most at 7.5 percentage points, a 38.3 percent decrease in the share of the budget. During that same time period, expenditures on higher education increased by 4.1 percentage points, a 29.9 percent increase in the share of the budget. The table below details changes in expenditures from 2008 to 2012.[7][9][10][11][12] 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][9] 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][9]
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][13]
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][10]

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, an increase of 0.19 percentage points, or 0.2 percent. 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 rating indicates lower risk for an investor, which in turn lowers costs for taxpayers.[20]

The table below lists the Standard and Poor's credit rating 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

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, 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 Illinois 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 7.14 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 9.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  11. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  13. United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 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 Illinois, "Home page," accessed February 21, 2014
  25. 25.0 25.1 25.2 Institute of Government and Public Affairs at University of Illinois, "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