October 3, 2011
Message from Rep. Mike Sells
Our State has three budgets.
Understanding the ins and outs of Washington’s operating, capital, and transportation budgets can leave a Philadelphia lawyer (or hey, even a Wall Street economist) feeling downright baffled. I hear from constituents all the time who wonder why there is a big highway project being built at the same time their children’s teachers are facing pay cuts.
It’s important to note that the money to pay for these three budgets comes from different sources, and falls under very different rules and regulations.
Below are a few brief details about the separate budgets.
Operating budget
The operating budget, the largest one of this financial threesome, is probably what most folks think of when the conversation turns to the “state budget.” Our state-government operations are funded out of this budget. We’re talking everything from education to social services to prisons to parks to natural-resource programs. About 50 cents in every operating-expenditure dollar comes from state sales taxes. Additional revenue for the operating budget comes from business & occupation taxes, and from our state’s share of property taxes.
Capital budget
Funding for our public buildings is in the capital budget, which is also known as the construction budget. While there is some cash in this budget, most of the money comes from the state’s sale of bonds. Capital-budget projects include the construction and repair of public schools and universities, and vital community-infrastructure projects such as water and sewer systems. These projects generate jobs in communities all across Washington. Additionally, nonprofit and community organizations sometimes receive grants through the capital budget to pay for needed construction and renovation projects.
Transportation budget
The transportation budget goes to fund highways, ferry system, transit, bike and pedestrian projects, as well as most of the Washington State Patrol. It’s financed primarily through the state gas tax that motorists pay at the pump. Our state constitution requires that gas taxes be used only for transportation, so it isn’t possible to use this money for schools, public safety, or other operating budget services.
For more information:
House Transportation Committee
House Capital Budget Committee
Senate Ways & Means Committee (particularly the “How Big is the State Budget” section in this Citizen’s Guide to the Budget link)
Office of Financial Management (particularly the “Washington State Budget Process link”)
Dreamliner comes true for Everett — and for all of Washington
The revenue outlook, wretched as it is, could push even an optimist down in the dumps. But Boeing’s Dreamliner send-off is cause for more than a little optimism about the future of our state.
The world’s No. 1 builder of planes delivered the first 787 just the other day. The folks at Boeing have orders for more than 800 additional Dreamliners. And, while our current economic condition is not very good, the delivery of that first plane reminds us that it does not have to last forever. We have wonderful communities and schools, an exceptional aerospace workforce, and impressive trade advantages over other states. The Great Recession has lasted longer than anyone expected, but we can build a better future, as shown by Washington workers who pulled the Dreamliner together, even when outsourced parts came to the company in less the usable condition.
For more information:
Everett Herald / Boeing 787 article