5998-S.E5998-S.E AMH CONN JEFS 085
ESSB 5998 - H AMD TO H AMD (H-3714.1/26) 2115
By Representative Connors |
NOT ADOPTED 02/28/2026
On page 88, line 7, increase the general fund-state appropriation in fiscal year 2027 by $250,000
On page 88, line 20, correct the total.
On page 90, after line 32, insert the following:
"(15) $250,000 of the general fund-state appropriation for fiscal year 2027 is provided solely for the implementation of House Bill No. 2746. If the bill is not enacted by June 30, 2026, the amount provided in this subsection shall lapse."
On page 173, line 11, decrease the general fund-state appropriation for fiscal year 2027 by $70,976,000
On page 174, line 3, correct the total.
On page 190, line 16, after "2026" strike all material through "are" at the end of line 17 and insert "((and $70,976,000 of the general fund—state appropriation for fiscal year 2027 are)) is"
On page 191, line 11, after "(e)" strike all material through "(g)" at the beginning of line 17
On page 191, at the beginning of line 19, strike all material through "capacity." on line 23
On page 203, line 36, decrease the general fund-state appropriation for fiscal year 2027 by $7,262,000
On page 204, line 20, correct the total.
On page 206, line 16, after "(($147,449,000))" strike "$146,616,000" and insert "$144,949,000"
Beginning on page 206, line 34, after "(b)" strike all material through "(c)" on page 207, line 1.
On page 230, line 18, after "2026" strike all material through "are" at the end of line 19 and insert "((and $5,753,000 of the general fund—state appropriation for fiscal year 2027 are)) is"
On page 231, line 11, after "(e)" strike all material through "(g)" at the beginning of line 17
On page 231, at the beginning of line 19, strike all material through "capacity." on line 23
On page 440, line 34, decrease the general fund—state appropriation for fiscal year 2027 by $81,340,000
On page 441, line 6, correct the total.
On page 447, line 37, decrease the general fund—state appropriation for fiscal year 2027 by $19,607,000
On page 448, line 26, correct the total.
On page 461, line 7, decrease the general fund—state appropriation for fiscal year 2027 by $15,627,000
On page 461, line 23, correct the total.
On page 466, line 15, decrease the general fund—state appropriation for fiscal year 2027 by $4,938,000
On page 466, line 21, correct the total.
On page 468, line 21, decrease the general fund—state appropriation for fiscal year 2027 by $6,286,000
On page 468, line 30, correct the total.
On page 471, line 1, decrease the general fund—state appropriation for fiscal year 2027 by $5,664,000
On page 471, line 9, correct the total.
On page 475, line 7, decrease the general fund—state appropriation for fiscal year 2027 by $814,000
On page 475, line 15, correct the total.
On page 507, after line 33, insert the following:
"NEW SECTION. Sec. 729. A new section is added to 2025 c 424 (uncodified) to read as follows: MIDDLE MANAGEMENT REDUCTION
General Fund—State Appropriation (FY 2027)($120,000,000)
TOTAL APPROPRIATION($120,000,000)
The appropriation in this section is subject to the following conditions and limitations: The office of financial management must reduce allotments for executive branch state agencies, legislative branch agencies, judicial branch agencies, and higher education institutions by $120,000,000 from the state general fund for fiscal year 2027 to reflect middle management reductions.
(1) Agencies and institutions with fewer than 100 full-time equivalent employees are excluded from the middle management reduction.
(2) The middle management reduction for executive branch general government agencies is intended to target a 10 percent reduction to policy staff positions, a 10 percent reduction to management staff positions, and a 15 percent reduction in consultant staff positions, as identified in the management type coding used by the office of financial management state human resources department.
(3) The middle management reduction for legislative branch agencies, judicial branch agencies, and higher education institutions that do not use the management type coding described in subsection (2) is intended to target the same percentage reductions described in (2) to the closest corollaries of the management types described in subsection (2).
NEW SECTION. Sec. 730. FOR THE OFFICE OF FINANCIAL MANAGEMENT CONTRIBUTIONS FOR STATE EMPLOYEE HEALTH INSURANCE
General Fund—State Appropriation (FY 2027) . . . . . . ($12,290,000)
General Fund—Federal Appropriation . . . . . . . . . . ($618,000)
General Fund—Private/Local Appropriation . . . . . . . ($107,000)
Other Dedicated Funds Appropriation . . . . . . . . . .($11,207,000)
TOTAL APPROPRIATION. . . . . . . . . . . . .($24,222,000)
The appropriations in this section are subject to the following conditions and limitations:
(1) The appropriations in this section are provided solely to adjust agency and institution appropriations to reflect a $16 reduction in the state employer funding rate for health insurance during fiscal year 2027, and corresponding decreased employer health insurance costs, consistent with the increasing the non-represented employee share of health benefit costs from 15 percent to 20 percent, effective January 1, 2027. Consistent with House Bill No. (H-3695/26), this increased employee cost sharing is anticipated to apply to all employees covered by the public employees' and school employees' benefits board programs beginning July 1, 2027.
(2) To facilitate the transfer of moneys from dedicated funds and accounts, the state treasurer shall transfer sufficient moneys from each dedicated fund or account to the special insurance contribution adjustment revolving account. The office of financial management shall adjust allotments for all agencies to reflect these adjusted appropriations."
On page 517, after line 10, insert the following:
"Climate Investment Account: For transfer to the
state general fund, $384,000,000 for fiscal
year 2027$384,000,000"
On page 535, after line 34, insert the following:
"NEW SECTION. Sec. 924. RCW 70A.65.250 and 2025 c 424 s 973 are each amended to read as follows:
(1)(a) The climate investment account is created in the state treasury. Except as otherwise provided in chapter 316, Laws of 2021, all receipts from the auction of allowances authorized in this chapter must be deposited into the account. Moneys in the account may be spent only after appropriation.
(b) Projects or activities funded from the account must meet high labor standards, including family sustaining wages, providing benefits including health care and employer-contributed retirement plans, career development opportunities, and maximize access to economic benefits from such projects for local workers and diverse businesses. Each contracting entity's proposal must be reviewed for equity and opportunity improvement efforts, including: (i) Employer paid sick leave programs; (ii) pay practices in relation to living wage indicators such as the federal poverty level; (iii) efforts to evaluate pay equity based on gender identity, race, and other protected status under Washington law; (iv) facilitating career development opportunities, such as apprenticeship programs, internships, job-shadowing, and on-the-job training; and (v) employment assistance and employment barriers for justice affected individuals.
(2) Moneys in the account may be used only for projects and programs that achieve the purposes of the greenhouse gas emissions cap and invest program established under this chapter and for tribal capacity grants under RCW 70A.65.305. During the 2023-2025 fiscal biennium, moneys in the account may also be used for tribal capacity grant activities supporting climate resilience and adaptation, developing tribal clean energy projects, applying for state or federal grant funding, and other related work; and for providing payments to agricultural fuel purchasers. During the 2025-2027 fiscal biennium, moneys in the account may also be used for tribal capacity grant activities supporting climate resilience and adaptation, developing tribal clean energy projects, applying for state or federal grant funding, and other related work. Moneys in the account as described in this subsection must first be appropriated for the administration of the requirements of this chapter, in an amount not to exceed five percent of the total receipt of funds from allowance auction proceeds under this chapter. Beginning July 1, 2023, and annually thereafter, the state treasurer shall distribute funds in the account that exceed the amounts appropriated for the purposes of this subsection (2) as follows:
(a) Seventy-five percent of the moneys to the climate commitment account created in RCW 70A.65.260; and
(b) Twenty-five percent of the moneys to the natural climate solutions account created in RCW 70A.65.270.
(3) The allocations specified in subsection (2)(a) and (b) of this section must be reviewed by the legislature on a biennial basis based on the changing needs of the state in meeting its clean economy and greenhouse gas reduction goals in a timely, economically advantageous, and equitable manner.
(4) During the 2023-2025 and 2025-2027 fiscal biennia, the legislature may direct the state treasurer to make transfers of moneys in the climate investment account to the carbon emissions reduction account, the climate commitment account, the state general fund, and the natural climate solutions account."
Renumber the remaining sections consecutively and correct any internal references accordingly.
| EFFECT: Assumes implementation of legislation reducing the property tax (HB 2746) which reduces fiscal year 2027-2029 NGF-O (funds subject to the outlook) resources by $2,154,000,000. For the Department of Revenue. Provides ongoing funding to the Department of Revenue for the implementation of House Bill No. 2746. For the Health Care Authority--Medical Assistance. Eliminates funding for the Health Care Authority, beginning July 1, 2026, for the Apple Health Expansion program that provides health care for Washington residents with incomes at or below 138 percent of the federal poverty level, regardless of immigration status. For the Health Care Authority--Community Behavioral Health. Removes funding in the Health Care Authority Community Behavioral Health program for treatment services to uninsured individuals who have an immigration status making them ineligible for federal Medicaid or federal subsidies through the health benefit exchange. For the Institutions of Higher Education. Decreases appropriations for institutions of higher education to reflect the ratio of nonexempt faculty to students as seen in fiscal year 2008. Middle Management Reduction. Requires the Office of Financial Management to reduce General Fund-State allotments to agencies and institutions to implement a reduction in management positions, including a 10 percent reduction to policy staff positions, 10 percent to management staff positions, and 15 percent to consultant staff positions. The ongoing reduction to middle management positions should be implemented to the closest types of positions at entities that describe their management personnel with other systems of management classification. State Employee and School Health Insurance. Reduces health benefit funding rate costs reflecting the enactment of House Bill No. 2746, which increases the share of health benefit costs paid by non-represented state employees from 15 percent to 20 percent on January 1, 2027, and for all state employees and school district employees in the 2027-29 fiscal biennium. Transfers funds from the Climate Investment Account (CIA) to General Fund-State (GF-S). Amends the CIA statute to allow transfers to GF-S.
FISCAL IMPACT:
Department of Revenue Increases General Fund - State by $200,000.
Health Care Authority--Medical Assistance Reduces General Fund - State by $70,976,000.
Health Care Authority--Community Behavioral Health Reduces General Fund - State by $7,262,000.
Institutions of Higher Education Reduces General Fund - State by $134,276,000.
State Employees Compensation Adjustment Reduces General Fund - State by $132,290,000. Reduces General Fund - Federal by $618,000. Reduces General Fund - Local by $107,000. Reduces Other Funds by $70,976,000.
Public Schools Compensation Adjustment No net change to appropriated levels.
Total Fiscal Impact: Reduces General Fund - State by $344,604,000. Reduces General Fund - Federal by $618,000. Reduces General Fund - Local by $107,000. Reduces Other Funds by $11,207,000.
FOUR-YEAR EXPENDITURE EFFECT: Reduces General Fund - State by $1,285,515,000. In the 2027-2029 fiscal biennium, decreases NGF-O (funds subject to the outlook) resources by $1,700,000,000. |
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