2020 legislative review
Budget & Taxation
Tommy Gantz : Tax & Fiscal Policy
In even-numbered years , the Legislature writes a supplemental operating budget to address unforeseen changes since the passage of the previous year ’ s biennial budget .
The Final 2020 supplemental budget ( Conference Report Engrossed Substitute Senate Bill 6168 ) increases net new near-general fund spending subject to the outlook ( NGF-O ) spending by $ 961 million , or approximately 1.8 percent over the enacted 2019-21 budget . The $ 961 million includes the $ 121 million in current obligations well as $ 839 million in net new spending . This budget brings NGF-O spending to $ 53.5 billion ($ 102 billion total funds ) in 2019-21 . In addition to the $ 961 million in new spending , the Legislature , through Engrossed House Bill 2965 , spends $ 100 million from the Budget Stabilization Account ( Rainy Day Fund ) for emergency response efforts related to the Covid-19 outbreak .
It is noteworthy that while the $ 961 million in new spending is significantly higher than appropriations in 2017 – 19 , it is less than the originally proposed $ 1.2 billion in the House and the $ 1.1 billion proposed in the Senate . Speaking as the session ended , Sen . Christine Rolfes , D-Bainbridge Island , the Senate ’ s lead budget-writer , said that the crisis led them to spend less than they originally planned in several areas in order to build up the state ’ s reserves for future years .
“ If revenue is reduced , which I think we all anticipate it will ,” Rolfes said , “ we have built in a buffer .”
Economic growth since the 2019 legislative session ended meant that the Legislature had $ 1.016 billion more to work with over four years than it did when the biennial budget was adopted , but that has been reduced to a smaller cushion of $ 918 million in projected revenue unspent . taxes & budget
ESSB 6492 b & o tax / workforce education
Passed / AWB Opposed
AWB opposed Engrossed Substitute Senate Bill 6492 , sponsored by Sen . Christine Rolfes , D-Bainbridge Island , which sought to resolve significant issues with HB 2158 , enacted in 2019 , which AWB also opposed . HB 2158 made specified service businesses identified by 43 descriptions drawn from North American Industry Classification System ( NAICS ) codes bear the cost of investments in higher education and workforce training programs . The language in HB 2158 made Department of Revenue enforcement nearly impossible . ESSB 6492 aimed to address three issues : ( 1 ) administrative and compliance complexities that may make revenue collection difficult ; ( 2 ) a late amendment last year which reduced the 2021 – 23 revenue
AWB Government Affairs Director Tommy Gantz , at left , speaks with lawmakers and employers during the budget lunch session of the 2020 AWB Legislative Day and Hill Climb . ( Photo : Brian Mittge / AWB )
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