January 23, 2024

Dear Friends and Neighbors,

The Legislature continues its 2024 session in Olympia and is in the middle of its third week. Within the next several days, we will cross over the halfway point of the session, which is expected to adjourn on March 7. The session's primary focus is to update the state’s current two-year budgets. Since budget updates are a significant focus, I thought it would be helpful to review the existing budgets.

All three budgets authorize spending throughout the two years, from July 1, 2023, to June 30, 2025. The operating budget ($69.8 billion), transportation budget ($13.5 billion), and capital budget ($9 billion) will be finalized after legislative updates and negotiation. Development of each budget update depends largely on the estimated state revenues over the remaining months of the biennium. This newsletter provides an overview of each of the three state budgets.

The Washington State Legislature is approaching the halfway point of its 60-day session in Olympia. In addition to operating, transportation, and capital budget updates, committees will conduct hearings, and the Legislature will debate and update various laws.

Pictured above is the Capitol Campus: Capitol Building (center), Supreme Court (top right near the lake), House and Senate offices (left, two buildings), and Governor’s Mansion (red home).

Many people drive down Interstate 5 and recognize the Capitol’s dome, but fewer people can tour the inside. This photo shows the Capitol interior, under the dome. The chandelier and the state seal below serve as centerpieces for the Capitol “rotunda,” where people often meet during sessions. The rotunda often hosts special events, such as performances from visiting school choirs, which makes for fun times during the busy legislative session.

Operating budget ($69.8 billion for 2023-2025)

The operating budget ($69.8 billion) funds the day-to-day operations of the state for two years, including early learning, K-12 education, higher education, health and human services, criminal justice, natural resources, courts, and other areas. Despite the COVID pandemic and national economic uncertainty, state revenues remain somewhat positive, with more dollars flowing into the state than originally projected. It remains uncertain how economic factors, such as federal interest rates, gas prices, home values, and past inflation, will affect state revenues over the next two and four years.

Some economists have forecasted revenues to flatten over these years. I have concerns about the sustainability of the overall state budget if future revenues flatten or decline. I prefer that the state set aside more reserve funds to weather any reduced revenue situations. More robust state reserves would help mitigate against any tax increases or spending reductions. For more information about the operating budget, click here.

The 2023-25 operating budget of $69.8 billion funds the day-to-day operations of state government for the two-year period ending Jun 30, 2025. The operating budget will be updated this session to reflect adjustments in state revenues and spending.

Transportation budget ($13.5 billion for 2023-2025)

The transportation budget funds the construction and maintenance of the state transportation system, including the maintenance and preservation of roads, bridges, and ferries. This budget also funds the state agencies and commissions that serve our transportation system, including the Washington State Patrol, Department of Licensing, Department of Transportation, Washington Traffic Safety Commission, County Road Administration Board, Transportation Improvement Board, Transportation Commission, and Freight Mobility Strategic Investment Board.

The budget also funds numerous previously approved road projects based on their construction schedules. Many of these projects have experienced cost escalations over the past year due to various factors. During the 2022 legislative session, the Legislature approved a new 16-year, $16.9 billion “Move Ahead Washington” transportation investment package, primarily for preserving and maintaining the existing system and completing large-scale transportation projects. (This is separate from the supplemental transportation budget but factors into future spending plans). For more information about the $13.5 billion transportation budget, click here.

Wenatchee’s Confluence Parkway Project

Plans for Confluence Parkway include a much-needed second bridge across the Wenatchee River, a widened pedestrian bridge, and a roadway with a direct connection to the U.S. 97A/US 2. The project was awarded $49 million in federal grants in 2021 and $85 million in state funding in 2023. Those funds are allocated from 2023 – 2029. Many transportation projects in the state are experiencing cost escalations. Click here for a Confluence Parkway aerial image.

Transportation Priorities

• State Route 522 (Monroe): The SR 522 proposal includes widening the distance between Monroe and Maltby and adding an interchange at Paradise Lake Road and Maltby Road. Over $30 million has been appropriated to the project for design, engineering, and right-of-way acquisition through 2027. Construction could cost $260 million or more and is not yet funded.
• Hwy 2 Improvements (Gold Bar - Sultan): Local leaders have identified a corridor improvement plan that includes several project components, which will be completed as funding is acquired, including replacing the Wagley Creek Bridge and fish culvert, adding a two-lane roundabout at Sultan Basin Road and Highway 2 and Old Owen Road and Main Street, and expanding the highway to four lanes. 
• Hwy 18 Widening (North Bend): A new interchange at I-90 and SR 18 will improve safety and traffic flow near North Bend. The projects include widening two miles of SR 18 to Issaquah/Hobart Road and five miles of SR 18 from Issaquah/Hobart Road to Deep Creek over Tiger Mountain. It is funded at $665 million and under construction.
• Confluence Parkway (Wenatchee): Plans for Confluence Parkway include a much-needed second bridge across the Wenatchee River, a widened pedestrian bridge, and a roadway with a direct connection to the U.S. 97A/US 2 Interchange and Odabashian Bridge.The Confluence Parkway project was awarded $49 million in federal grants in 2021 and $85 million in state funding in 2023. 
• State Route 202/203 (Fall City - Carnation): SR 202 through Fall City and SR 203 between Fall City and Monroe receive significant usage and need safety and traffic flow improvements, including a roundabout near Carnation.  I look forward to continuing discussions to identify possible transportation solutions.

Highway 2 improvements near Sultan

City of Sultan leaders have identified a preferred corridor improvement plan that includes several project components, which will be completed as funding is acquired. Currently, the city is working to secure funding to replace the Wagley Creek Bridge and fish culvert and add a two-lane roundabout at Sultan Basin Road and Highway 2. The design also includes other elements, such as roundabouts at Old Owen Road and Main Street and expanding the highway to four lanes. Click to view an enlarged version of this Highway 2 proposal near Sultan.

Capital budget ($9.0 billion for 2023-2025)

The state capital budget funds the construction and maintenance of state buildings, public school matching grants, higher education facilities, public lands, parks, and other assets. Most sections of the capital budget include grant programs where local governments apply for funding based on specific qualifications and submission of matching funds. Other elements of the capital budget are more subjective.

In recent years, the 12th District team has been able to generate big wins for our district through this budget, including the replacement of critical infrastructure following tragic wildfires, the expansion of outdoor recreation opportunities that improve our economy and quality of life, and enhancements to crucial community response systems. Our legislative team will evaluate the various requests submitted to the Legislature when developing the 2023-25 supplemental capital budget. However, the next capital budget could be strained due to the rising costs and inflationary factors associated with public works projects in recent years. For more information about the capital budget, click here.

Working together for capital improvements

Similar to transportation projects, capital budget items can take several years to finalize. Following this 2017 meeting with the Chelan-Douglas Land Trust, we secured key funding for Wenatchee’s Saddle Rock trails during the 2018 session. The City of Wenatchee has now completed its initial soil work, and follow-up enhancements are being designed.

I’m proud to support community capital projects, including improving public lands like the Saddle Rock trail system. The initial phase of the project I supported in 2018 (group photo above) was recently completed, allowing for future planned trail improvements. This photo shows me in between the saddle rocks overlooking the Wenatchee Valley. To learn more about hiking Saddle Rock, click here.

Thank you for the opportunity to serve

I hope this email newsletter provides you a good review of the state budgets. If you have any questions about the budgets or legislation being considered, please call our Legislative Hotline at 1-800-562-6000. To learn more about my legislative efforts on your behalf, please visit my website, senatorbradhawkins.org. Also, my office has been actively working to share information about my Facebook page. You can like and follow me on Facebook @SenatorBradHawkins for my latest updates. 

Thank you for the opportunity to serve as your state senator.

Sincerely,

Brad Hawkins

State Senator Brad Hawkins
12th Legislative District

Website: senatorbradhawkins.org

P.O. Box 40412 | Olympia, WA 98504-0412
(360) 786-7622 or Toll-free: (800) 562-6000