State spending: Senate OKs operating budget

In a 27-22 vote, Washington state senators passed an 2021-23 operating budget proposal during the virtual legislative debate Thursday. It will head to the House for further consideration.

Senate Bill 5092 would distribute $59.2 billion to schools, public health, pandemic relief-related efforts and other things. The bill would allocate $1.7 billion worth of federal funds to help school districts reopen and address learning loss among their students.

About $1 billion in federal funds would also be allocated to vaccination, contact tracing and testing efforts, and $500 million in state funds would go to unemployment insurance relief for business owners, according to a legislative document.

Under SB 5092, the Legislature expects to gain $357 million from implementing a 7% capital gains tax through SB 5096, which the Senate passed March 6 and which was in the House Finance Committee as of March 15.

Sen. Christine Rolfes, D-Bainbridge Island, is SB 5092’s primary sponsor. Rolfes said during the virtual legislative debate although the bill proposes a “big budget,” all Washingtonians will benefit from it.

“(The bill) goes big on a recovery that lifts everybody in every corner of this state up, especially investing in communities that have historically been left behind,” Rolfes said.

Sen. Lynda Wilson, R-Vancouver, said during the virtual legislative debate SB 5092 increases spending by 13%. One of the “disappointing” things included in the bill is the capital gains tax, she said.

“We just can’t do that,” Wilson said. “I’m bothered by the fact that the people will have to foot the bill for the lawsuit that will happen afterward.”

Sen. Patty Kuderer, D-Bellevue, said during the virtual floor debate SB 5092 provides an opportunity to invest in the people of the state. One of the many things the bill would ensure is provide resources to those facing housing issues or homelessness.

There would be $230 million allocated to emergency rental and utility assistance for families who live in low-income households, Kuderer said, and $187 million would go to homeowner assistance efforts to prevent foreclosure for certain individuals.

“These are some of the major investments that this budget will make to ensure that we exit out of this public health crisis on an off-ramp rather than a cliff,” Kuderer said.

Sen. Mark Schoesler, R-Ritzville, said during the virtual floor debate SB 5092 may lead to “very questionable results.” Many proponents say the bill would invest in multiple things, but “investing is made easy with somebody else’s money.”

Other components of SB 5092 include $300 million for those ineligible to receive federal assistance or benefits due to their citizenship status, according to the bill’s text. $125 million would go to efforts concerning wildfire preparedness, prevention and protection.

Sen. Judy Warnick, R-Moses Lake, had an amendment that would increase the Medicaid rate for two health care facilities located in eastern Washington — Toppenish and Wenatchee. It was not adopted to SB 5092.

The Medicaid rate for the Wenatchee facility has not increased for more than 20 years, Warnick said. Her amendment not only would help the two health care facilities but other facilities as well.

“This amendment would provide a short-term relief while the state tries to figure out a better funding mechanism,” Warnick said.

Sen. June Robinson, D-Everett, voiced opposition for Warnick’s amendment during the virtual legislative debate and said the two facilities the amendment is referring to have a “fairly favorable payer mix.”

Warnick said 33% of central Washington’s population rely on Medicaid and 22% rely on Medicare. In addition, Central Washington Hospital, in particular, supports 12 clinics from Orville to Royal City, she said.

“I am very, very concerned if we don’t increase the reimbursement to this hospital we are going to lose those clinics within that 12,000 square mile area,” Warnick said.

SB 5092’s companion, HB 1094, was referred to the Rules Committee as of Thursday. Representatives have yet to vote on the final passage of the bill.