BILL REQ. #:  S-5390.1 

READ FIRST TIME 04/06/12.   

     AN ACT Relating to requiring a balanced state budget for the current and ensuing fiscal biennium; amending RCW 82.33.010; adding a new section to chapter 43.88 RCW; and adding new sections to chapter 82.33 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 43.88 RCW to read as follows:
     (1) For the 2013-2015 fiscal biennium and subsequent fiscal biennia, the legislature shall enact an appropriations bill that appropriates from the general fund and related funds for that fiscal biennium a total amount that, when combined with all appropriations from the general fund and related funds for that fiscal biennium made as of the date of the appropriations bill's passage and the amount of any general fund moneys to be transferred to the budget stabilization account pursuant to Article VII, section 12 of the state Constitution, does not exceed the beginning general fund and related funds balances and any enacted general fund and related funds resources for that fiscal biennium. For purposes of this subsection, resource estimates must reflect the most recent revenue forecast of the economic and revenue forecast council.
     (2) For the 2013-2015 fiscal biennium and subsequent fiscal biennia, the legislature shall enact an appropriations bill that requires for the next ensuing fiscal biennium general fund and related funds appropriations necessary to maintain the continuing costs of program and service levels either funded in that appropriations bill or mandated by other state law, of a total amount that, when combined with all projected appropriations from the general fund and related funds for that fiscal biennium and the amount of any general fund moneys projected to be transferred to the budget stabilization account pursuant to Article VII, section 12 of the state Constitution, does not exceed the beginning general fund and related funds balance and any enacted general fund and related funds resources for that fiscal biennium. For purposes of this subsection, resource estimates must reflect the most recent revenue forecast of the economic and revenue forecast council.
     (3) Subsections (1) and (2) of this section do not apply to an appropriations bill that makes net reductions in general fund and related funds appropriations and is enacted between July 1st and February 15th of any fiscal year.
     (4) Subsections (1) and (2) of this section do not apply to an appropriations bill that is enacted by a favorable vote of three-fifths of the members of each house of the legislature.
     (5) Subsection (2) of this section does not apply in a fiscal biennium in which money is appropriated from the budget stabilization account.
     (6) "Related funds," as used in this section, means the Washington opportunity pathways account, the education legacy trust account, and such other funds and accounts as deemed appropriate by the economic and revenue forecast council under RCW 82.33.010.

Sec. 2   RCW 82.33.010 and 1990 c 229 s 1 are each amended to read as follows:
     (1) The economic and revenue forecast council is hereby created. The council shall consist of two individuals appointed by the governor and four individuals, one of whom is appointed by the chairperson of each of the two largest political caucuses in the senate and house of representatives. The chair of the council shall be selected from among the four caucus appointees. The council may select such other officers as the members deem necessary.
     (2) The council shall employ an economic and revenue forecast supervisor to supervise the preparation of all economic and revenue forecasts and state budget outlooks. As used in this chapter, "supervisor" means the economic and revenue forecast supervisor. Approval by an affirmative vote of at least five members of the council is required for any decisions regarding employment of the supervisor. Employment of the supervisor shall terminate after each term of three years. At the end of the first year of each three-year term the council shall consider extension of the supervisor's term by one year. The council may fix the compensation of the supervisor. The supervisor shall employ staff sufficient to accomplish the purposes of this section.
     (3) The economic and revenue forecast council shall oversee the preparation of and approve, by an affirmative vote of at least four members, the official, optimistic, and pessimistic state economic and revenue forecasts prepared under RCW 82.33.020. If the council is unable to approve a forecast before a date required in RCW 82.33.020, the supervisor shall submit the forecast without approval and the forecast shall have the same effect as if approved by the council.
     (4) The economic and revenue forecast council shall oversee the preparation of and approve, by an affirmative vote of at least four members, the state budget outlook prepared under section 3 of this act. If the council is unable to approve a state budget outlook before a date required in section 3 of this act, the supervisor shall submit the outlook without approval and the outlook shall have the same effect as if approved by the council.
     (5) A councilmember who does not cast an affirmative vote for approval of the official economic and revenue forecast or the state budget outlook may request, and the supervisor shall provide, an alternative economic and revenue forecast or state budget outlook based on assumptions specified by the member.
     (((5))) (6) Members of the economic and revenue forecast council shall serve without additional compensation but shall be reimbursed for travel expenses in accordance with RCW 44.04.120 while attending sessions of the council or on official business authorized by the council. Nonlegislative members of the council shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.33 RCW to read as follows:
     (1) To facilitate compliance with, and subject to the terms of, section 1 of this act, four times each year the supervisor shall prepare, subject to the approval of the economic and revenue forecast council under RCW 82.33.010, an official state budget outlook for state revenues and expenditures for the general fund and related funds. In odd-numbered years, the period covered by the November state budget outlook shall be the current fiscal biennium and the next ensuing fiscal biennium. In even-numbered years, the period covered by the November budget outlook shall be the next two ensuing fiscal biennia. The revenue and caseload projections used in the outlook must reflect the most recent official forecasts adopted by the economic and revenue forecast council and the caseload forecast council for the years for which those forecasts are available. The outlook shall clearly state the assumptions used in the baseline expenditure estimates and any adjustments made to those estimates. The outlook shall clearly state the assumptions used in the baseline revenue estimates and any adjustments to those estimates. The outlook must include the impact of previously enacted legislation with a future implementation date.
     (2) The supervisor shall submit state budget outlooks prepared under this section, along with any unofficial state budget outlooks provided under RCW 82.33.010, to the governor and the members of the committees on ways and means of the senate and house of representatives, including one copy to the staff of each of the committees, on or before the dates specified in RCW 82.33.020(2).
     (3) Each January, the supervisor shall also prepare, subject to the approval of the economic and revenue forecast council, a state budget outlook for state revenues and expenditures that reflects the governor's proposed budget document submitted to the legislature under chapter 43.88 RCW. Within thirty days following enactment of an operating budget by the legislature, the supervisor shall prepare, subject to the approval of the economic and revenue forecast council, a state budget outlook for state revenues and expenditures that reflects the enacted budget.
     (4) All agencies of state government shall provide to the supervisor immediate access to all information relating to state budget outlooks.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.33 RCW to read as follows:
     (1) To promote the free flow of information and to promote legislative input in the preparation of the state budget outlook, immediate access to all information relating to the state budget outlook shall be available to the state budget outlook work group, hereby created. The state budget outlook work group shall consist of one staff member selected by the executive head or chairperson of each of the following agencies or committees:
     (a) Office of financial management;
     (b) Legislative evaluation and accountability program committee;
     (c) Office of the state treasurer;
     (d) Office of the state actuary;
     (e) Ways and means committee of the senate; and
     (f) Ways and means committee of the house of representatives.
     (2) The state budget outlook work group shall provide technical support to the economic and revenue forecast council. Meetings of the state budget outlook work group may be called by any member of the group for the purpose of assisting the economic and revenue forecast council, reviewing the state budget outlook, or for any other purpose which may assist the economic and revenue forecast council.

NEW SECTION.  Sec. 5   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.