Historically large supplemental budget sets aside significant (but unprotected) reserves

May 5, 2022
Written by WR Communications

With the 2022 supplemental operating budget, 2021–23 appropriations from funds subject to the outlook (NGFO) are 24.3% higher than 2019–21.

That is the largest biennial increase going back at least to the early 1990s. (The average biennial spending growth was 9.1% from 1993–95 through 2019–21.) Further, this is the first time a mid-biennium supplemental budget has increased spending by more than the increase in the original biennial budget.

These spending increases were possible due to a substantial budget surplus. The budget uses 80.3% of the surplus for new spending (including appropriations to the transportation and capital accounts), 14.3% for reserves, 4.2% for tax cuts, and 1.2% for transfers to other funds.

Read the full story from the Washington Research Council