2022 Supplemental Operating, Capital, and Transportation Budgets

2022 Supplemental Operating, Capital, and Transportation Budgets

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On Thursday, December 16, 2021, Governor Inslee released his 2022 Supplemental Operating, Capital, and Transportation budgets with a strong emphasis on investments to address climate change, housing and homelessness and poverty, salmon recovery, and transportation needs.

Building on a two-year budget of roughly $59 billion, the Governor’s supplemental Operating Budget would use the state’s robust revenues, federal infrastructure, and coronavirus relief monies, and some transfers to invest $61.79 billion. Inslee touted the additional investments as critical to addressing glaring needs while minority Republicans criticized the Governor for not looking for ways to provide funds back to taxpayers, businesses, etc. The Governor’s budget does not include new taxes and would put an additional $600 million – what his office calls the largest rainy-day fund deposit ever -- into the state’s “Budget Stabilization Account” (more commonly known as the Rainy Day Fund) in addition to $574 million already in the BSA under the enacted-two year budget.

Overall, the Governor’s budget would result in $2.5 billion in state reserves at the end of this biennium and $2.8 billion at the end of the 2023-25 biennium. His budget includes as well a 3.25 percent pay raise for state employees covered by collective bargaining agreements. As part of his proposal, the Governor recommends investing unspent federal funding as follows:

  • $693.03 million toward emergency rental assistance and housing
  • $500 million for transportation
  • $170.56 million for investments across public health, medical, behavioral health
  • $92.46 million in food assistance
  • $52.18 million for child care and child welfare
  • $38.48 million for economic sector support
  • $2.59 million for general government operations related to managing and implementing the federal funding requirements.

Here’s a sampling of what is in the Governor’s budget across numerous policy areas:


  • The Governor’s budget includes an $815 million overall investment in housing and homelessness – of that, $495 million is in capital investments and $320 million on the Operating side.
  • Of that, $334.7 million is in Rapid Rehousing investments ($284.7 million coronavirus relief, $50 million state bonds).
  • The Governor’s budget projects investments helping to add about 2,600 new permanent supportive housing units on top of an estimated 2,700 added through the 2021-23 budgets.
  • Some 1,500 of the units would be added through a $100 million additional appropriation in the Housing Trust Fund. (Capital Budget)
  • The budget includes $100 million for assisting people with utility arrearages (NOTE: This is appropriated as funding to public and private electric, natural gas, water, and sewer utilities – see below).
  • The budget includes $100 million for shelter program grants.
  • There is $60 million added for crisis response stabilization beds. (Capital budget)
  • The budget includes $50.9 million to remediate encampments -- $40.6 million of that is for Commerce to grant flexible funding to local governments and organizations to get people into housing and services; another $5 million is in the Transportation Budget for clearing of encampments within state rights of way.
  • The budget includes $48.61 million for supportive behavioral health and crisis response investments (on top of the aforementioned $60M).
  • The budget adds $11.3 million to the landlord mitigation fund.
  • The Operating Budget allocates $3.5 million toward carrying out the “missing middle” policy proposal that will be prime-sponsored by Sen. Mona Das (D-Kent/47th Dist.) and Rep. Jessica Bateman (D-Olympia/22nd Dist.).


  • The Governor’s budget allocates $330 million in additional federal and state motor-vehicle funds to the 405 corridors and would assume a small amount of funding ($400,000) from a sales tax deferral program to be administered by the Department of Revenue.  The Recommendation Summary language for DOR indicates the sales tax deferral could be used toward five (5) projects but does not name them. 405 corridor coalition lobbyists will be inquiring with the Governor’s Office and OFM to get much better clarity as to what all this means and where/how it would be applied.
  • $324 million is allocated to fund two 144-car hybrid-electric ferries as well as to convert a second jumbo ferry to hybrid-electric use and to add EV charging infrastructure to three (3) ferry terminals.
  • $16.5 million in additional funding is allocated to the SR 167/SR 509 Gateway project.
  • $45 million in added funding – a part of the Governor’s Climate Change proposal – would go to the Highways & Local Partnerships division of WSDOT -- $30M of it for bicycle-pedestrian grants and $15M for the Safe Routes to Schools program.
  • $7.2 million in added funding would go to WSDOT’s Highway Improvements Program (Program I) to invest in trail corridors with an emphasis on those that create regional multi-modal connections.
  • An additional $5 million for addressing homeless encampments within WSDOT rights-of-way – also noted above under Housing/Homelessness – goes to WSDOT’s Highway Maintenance program.
  • $30 million – again, from the Governor’s Climate Change proposal – would be invested in additional “Green Transportation” capital grants.
  • $136 million in added funding would be allocated to maintenance and preservation needs on the state system.
  • About $4 million in additional funding is put toward extending the State Route 167 HOT lanes between State Route 18 and State Route 410.
  • $4 million is put toward the WSDOT Rail Program for high-speed rail planning and $50 million is put toward matching anticipated federal high-speed-rail funding.

Economic Development, Economic Assistance, Infrastructure

  • $20 million in added funding for Working Washington grants to small businesses, with some updates to criteria.
  • $20 million in added funding (General Fund) for recovery/relief grants to arts/heritage/science organizations. The funding goes through Commerce but Commerce is to develop criteria for funding distribution in collaboration with the Washington State Arts Commission.
  • $15 million to Ports for infrastructure upgrades related to addressing supply-chain challenges. There are $2 million Capital allocations to each of the three Puget Sound ports (Seattle, Tacoma, Everett) – with the Port of Tacoma dollars going toward on off-dock container yard project while the Port of Everett project is for terminal/warehouse upgrades.
  • $125 million (through Department of Commerce) in “Community Investment” grants to organizations (and potentially small businesses) with an emphasis on addressing disparities, historical inequities, poverty and the like in disadvantaged communities.
  • $50 million goes toward helping Energy Intensive Trade-Exposed companies (EITE) plan and implement strategies to decarbonize their operations.
  • $6.5 million in funds (through Commerce) to incentive film and TV production in the State of Washington.
  • An additional $5 million is put toward the Working Families Tax Credit program.

Salmon Recovery/Riparian Habitat

  • The Governor’s budget categorizes nearly $987 million as salmon-recovery-related investments.
  • The salmon recovery package will include Governor-request legislation to create a statewide salmon habitat standard.
  • The budget includes $100 million in riparian habitat grants – to be distributed through the Recreation & Conservation Office (RCO) – for local jurisdictions that meet the salmon habitat standard.
  • There is $20 million for drinking water assistance.
  • There is $88.3 million in additional funding (loans) for the Drinking Water Assistance State Revolving Fund - $78.9 million of that is federal funding and the other $9.4 million would come from the Public Works Assistance Account.
  • There is $200  million in additional funding (loans) for the Water Pollution Control revolving funds.
  • There is $36 million in additional funding (loans) for the Clean Water state revolving fund - $33 million of that federal and $3 million would come from the Public Works Assistance Account.
  • There is $27.2 million for salmon harvest monitoring and enforcement.
  • There is $7.4 million to implement the Nutrient General Permit within the Department of Ecology – local governments have expressed significant concerns over this permit.
  • There is $4 million toward increasing local stormwater capacity (grants).
  • There is $654,000 allocated to complete a statewide fish passage barrier removal prioritization.
  • There is $375,000 for a study of mitigation options should the federal government proceed with the removal of Snake River dams.

Public Safety/Criminal Justice Training Commission

  • The budget includes $6.547 million for the Criminal Justice Training Commission to go toward Basic Law Enforcement Academy Classes – an additional 4.5 slots in the Fiscal Year 2022 and an additional four (4) slots in FY 2023 – this is very close to the +9 requested by CJTC
  • The budget includes $823,000 – of the $1 million requested by CJTC – to go toward online training platforms.
  • The Governor’s budget includes $4.11 million for grants to decrease gun violence in local communities – with preferences given to a few areas of the state including organizations in South King County, Tacoma, and Yakima.
  • The budget reduces mental health field response team grants by $2 million 

Local Government/State Government in General

  • The Operating Budget increases Fire Insurance Premium distributions to cities by $2.35 million.
  • Municipal Criminal Justice Assistant Account distributions are increased by $713,000 – from $45.073 million to $45.786 million.
  • The Governor’s Capital Budget includes an additional $20.5 million for seven (7) “Local and Community Projects.”
  • The budget includes an additional $752,000 for the Office of Equity.


  • The budget includes $19.34 million in grants to local governments through the Department of Commerce for updates to GMA comprehensive plans, integrating Climate Change into comprehensive plans (HB 1099), addressing the salmon habitat standard, and “missing middle” grants.
  • Commerce is provided up to $500,000 biennium for policy research including ongoing evaluations of the Growth Management Act (GMA).

Climate Change – including EV and multi-modal investments tied to climate change and use of Climate Commitment Act funds

  • The budget includes $626 million in climate-change-related investment
  • There is $100 million for an Electric Vehicle rebate program
  • The aforementioned $45 million for bicycle and pedestrian grants and Safe Routes to Schools is part of the Climate Change investment package
  • There is $10 million for a Transit Access grant program
  • The aforementioned $7.2 million for regional trails and bikeways is part of the Climate Change Investment Package

Natural Resources

  • The Governor’s Capital Budget includes an additional $2.5 million for the Department of Natural Resources for the Derelict Vessel Removal Program.
  • The Governor’s Operating Budget includes an additional $300,000 – through the Recreation & Conservation Office (RCO) – for boating-safety grants to minimize seaplane and boating/kayaking/paddleboard conflicts on Lake Union. Of that $100,000 is for Fiscal Year 2022 and $100,000 is for the Fiscal Year 2023.
  • The Governor’s Capital Budget includes an additional $300,000, from a Thurston County Capital Facilities Account, for the Capitol Lake Management study.

Arts & Culture & Heritage

  • The budget includes the aforementioned $20 million for arts, heritage, and science organizations’ sector relief grants
  • There is $1.5 million for the service to military veterans arts program.
  • There is $514,000 put toward additional funding and staff for the Washington State Arts Commission to care for the state arts collection.
  • There is $150,000 toward the state’s Poet Laureate.
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