Opinion ID: 2519474
Heading Depth: 2
Heading Rank: 2

Heading: The fiscal years 2005 and 2006 expenditure limits

Text: ¶ 14 In its 2005 regular session, the legislature took action to raise the expenditure limits for fiscal years 2005 and 2006 by $250 million. Section 1701 of Engrossed Substitute Senate Bill (ESSB) 6090 transfer[red] $250 million [17] from the health services account into the state general fund for fiscal year 2005, explicitly providing that the state expenditure limit shall be increased by the amount of the transfer. [18] LAWS OF 2005, ch. 518, § 1701. As discussed above, former RCW 43.135.035(5) provides that a transfer of funds to the general fund from other funds or accounts during a fiscal year increases the state expenditure limit for that year. ¶ 15 Section 1607 of ESSB 6090 made an appropriationan expenditureof $250 million from the state general fund to the violence reduction and drug enforcement account (VRDEA), directing that the money was solely for deposit. LAWS OF 2005, ch. 518, § 1607. As discussed above, former RCW 43.135.025(6) directs that the expenditure limit be adjusted based on actual expenditures before projecting the expenditure limits for subsequent fiscal years. Finally, ESSB 6090, section 1701 also transfer[red] $250 million from VRDEA to the health services account. LAWS OF 2005, ch. 518, § 1701. ¶ 16 In November 2005, pursuant to former RCW 43.135.025(6), the ELC finalized the state expenditure limit for fiscal year 2005 and projected limits for fiscal year 2006 (the then-current fiscal year) and fiscal year 2007. As directed by the TPA, the ELC increased the fiscal year 2005 expenditure limit by the $250 million transfer into the general fund. Laws of 2005, ch. 518, § 1701; see also former RCW 43.135.035(5) (increase limit for transfer into general fund). Also as directed by the TPA, the ELC rebased the fiscal year 2005 actual expenditures to reflect the $250 million appropriation from the general fund, thereby using the additional expenditure limit capacity created by the transfer into the general fund from the health services account. LAWS OF 2005, ch. 518, § 1607; see also former RCW 43.135.025(6) (rebase for actual expenditures). The ELC then projected the fiscal year 2006 and 2007 expenditure limits from the rebased fiscal year 2005 expenditure limit, appropriately increased by the fiscal growth factor.