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Department of Commerce

  Annual FTEs General Fund State Other Funds Total Funds
  (Dollars in Thousands)
Estimated Expenditures 288.5 141,629 433,763 575,392
2019-21 Maintenance Level 304.0 140,895 452,230 593,125
Difference from 2017-19 15.5 (734) 18,467 17,733
% Change from 2017-19 5.4% (0.5%) 4.3% 3.1%

2019-21 Policy Other Changes

Legal Support 0.0 700 0 700
State Surplus Property 1.1 348 0 348
Skilled Worker Grant Program 0.50 300 0 300
Lead Based Paint Enforcement 2.0 544 0 544
Drug & Gang Task Force 0.0 8,000 0 8,000
Buildable Lands Program 1.0 4,305 0 4,305
Rural Economic Development 1.0 2,000 0 2,000
Supporting Clean Energy Transition 9.8 4,030 0 4,030
Modern Work Environment 0.0 1,290 0 1,290
LGFN Program 2.0 0 594 594
Clean Buildings 2.0 2,300 0 2,300
Clean Electricity 4.5 430 0 430
Reduce Homelessness 0.0 12,000 0 12,000
Reduce Homelessness: Families 0.0 38,500 0 38,500
Reduce Homelessness: Youth 0.0 8,000 0 8,000
Reduce Homelessness-Rent Assistance 0.0 34,320 0 34,320
MRSC Funding 0.0 0 300 300
Statewide Broadband Office 2.0 1,200 0 1,200
State-Owned Buildings/SEEP 0.0 750 0 750
2019-21 Policy Other Changes Total 25.9 119,017 894 119,911

2019-21 Policy Comp Changes

State Public Employee Benefits Rate 0.0 15 3 18
WFSE General Government 0.0 627 1,083 1,710
State Rep Employee Benefits Rate 0.0 11 20 31
Non-Rep General Wage Increase 0.0 856 328 1,184
Non-Rep Premium Pay 0.0 164 36 200
Non-Rep Targeted Pay Increases 0.0 96 62 158
PERS & TRS Plan 1 Benefit Increase 0.0 34 32 66
Non-Rep Salary Schedule Revision 0.0 61 37 98
2019-21 Policy Comp Changes Total 0.0 1,864 1,601 3,465

2019-21 Policy Transfers Changes

Orca Transit Pass Funding Transfer 0.0 (24) (12) (36)
Health Coalition FSA Fund Transfer 0.0 (12) (2) (14)
2019-21 Policy Transfers Changes Total 0.0 (36) (14) (50)

2019-21 Policy Central Services Changes

Electric Vehicle Infrastructure 0.0 1 1 2
Archives/Records Management 0.0 1 0 1
Audit Services 0.0 3 4 7
Legal Services 0.0 21 36 57
CTS Central Services 0.0 (29) (58) (87)
DES Central Services 0.0 6 9 15
OFM Central Services 0.0 87 156 243
2019-21 Policy Central Services Changes Total 0.0 90 148 238
Total Policy Changes 25.9 120,935 2,629 123,564
2019-21 Policy Level 329.9 261,830 454,859 716,689
Difference from 2017-19 41.4 120,201 21,096 141,297
% Change from 2017-19 14.4% 84.9% 4.9% 24.6%

Policy Changes

Legal Support

Funding is provided for the agency to contract with an organization to provide legal representation and referral services for indigent persons who are in need of legal services for matters related to their immigration status. Persons eligible for assistance under this contract must be determined to be indigent under standards developed under chapter 10.101 RCW.

State Surplus Property

The 2018 Legislature enacted 3SHB 2382, which directs the department to work with several state agencies to identify and catalog property suitable for the development of affordable housing for low-income households. The department must provide these inventories of state-owned lands and buildings to parties interested in developing sites for affordable housing, and provide an annual report to the Office of Financial Management and the Legislature on its findings. One-time funding was provided to begin this work in the 2018 supplemental budget. Ongoing resources are provided.

Skilled Worker Grant Program

Chapter 43.329 RCW creates the skilled worker outreach, recruitment, and career awareness grant program. This program provides grants to raise awareness regarding access to education, training, certifications and employment through apprenticeships, community and technical college programs. Funding was provided in the 2018 supplemental budget to create this program; funding is provided to continue the program.

Lead Based Paint Enforcement

The enacted 2018 supplemental budget provided funding to expand the lead based paint enforcement activities within the department. With this additional funding, the department has been able to begin the process of conducting meaningful enforcement of lead paint rules outside of western Washington for the first time in the program's history. Funding is provided to continue the effort to increase protection to the public from lead poisoning on an ongoing basis.

Drug & Gang Task Force

Funding is provided to maintain local government drug and gang task forces, which will be multi-jurisdictional law enforcement collaborations utilizing resources from cooperating agencies. The task forces will focus law enforcement efforts on disruption of major drug trafficking operations, violent crime including gang activity, and other related criminal activities. The task force investigations of illegal drug enforcement operations will focus on major criminal trafficking operations, including organized crime, rather than small scale or low-level drug offenses.

Buildable Lands Program

Chapter 16, Laws of 2017 created a new requirement, subject to funding, that counties, cities and towns participating in the Buildable Lands program incorporate tools and policies to address affordable housing issues into their buildable lands analyses. Funding was provided in 2018 to begin this work. A continuation of funding for this effort is provided to meet the financial requirements of the legislation, ensuring that seven counties - Whatcom, Pierce, King, Snohomish, Pierce, Kitsap, Thurston and Clark - fully implement the changes to their buildable lands programs.

Rural Economic Development

Funding is provided to establish a competitive grant program targeted to local economic development organizations to provide resources for asset mapping, regional strategic planning and industrial site readiness. These grants will help communities create economic development goals and strategies to create living wage jobs. Funding will also provide resources for small and rural Associate Development Organizations to help facilitate economic development activities locally.

Supporting Clean Energy Transition

The state Energy Office within the department lacks the necessary resources to provide long-term planning, advanced analytics, emergency response support, and community technical assistance often requested by stakeholders, which include local governments, lawmakers, citizens, tribes, utilities, and other energy businesses. Funding is provided to enable the agency to better support decision makers achieve climate, energy and efficiency goals; gain better analytical modeling capabilities; improve communication with the public; and develop net-zero energy codes for buildings, among other activities.

Modern Work Environment

Based on current trends, it is anticipated that the agency will continue to grow at a rate of 3 percent per year in personnel. At this rate, by fiscal year 2021, the agency's leased facility in Olympia will no longer accommodate staffing levels. Additionally, the department’s current physical space is not flexible or responsive to the needs of a mobile work environment. In order to avoid the costs associated with moving to a new location, funding is provided for the department to acquire and install furnishings for the purpose of converting the current leased space to accommodate growth.

LGFN Program

The Local Government Fiscal Note (LGFN) program provides estimates of costs to cities, towns, and special districts of bills before the Legislature. In recent years the number of local government fiscal note requests have increased, negatively impacting the timeliness and increasing requests for revision. Funding and staff are provided for additional capacity and training, which will allow the LGFN program to meet the demand for on-time fiscal notes while maintaining high levels of quality in its data and analysis.

Clean Buildings

Legislation proposed by the Governor will direct the department to establish by rule a state energy performance standard for covered commercial buildings by July 1, 2020. The department will develop energy use intensity targets and investment criteria for conditional compliance. The bill also creates an incentive program to encourage energy efficiency in all aspects of new and existing buildings, and requires the department to report on the program's effectiveness every two years. Funding is provided to implement the department's new activities required in the bill.

Clean Electricity

Legislation proposed by the Governor will create a Washington Clean Energy Act with the goal of transitioning Washington’s electricity supply to 100 percent carbon neutral by 2030 and carbon free by 2045. Under the bill, the department must report by January 2021 and every two years thereafter on the policy, benefits and impacts to utilities; impacts to low-income customers and vulnerable populations; barriers to achieving the new standard; and policy recommendations. The bill allows the department to adopt rules to ensure the proper implementation and enforcement of the proposed law as it applies to consumer-owned utilities. Funding is provided to carry out the department's new activities required in the bill.

Reduce Homelessness

The number of homeless individuals living in Washington has grown steadily since 2013. This funding is aimed at reducing the number of new people entering into homelessness through an expansion of the Consolidated Homeless Grant Program, which helps homeless people obtain and maintain housing through a mix of interventions such as homelessness prevention, permanent supportive housing, short-term rent assistance and emergency shelter.

Reduce Homelessness: Families

The 2018 point-in-time count of homeless households in Washington found that 273 families with children are living outside or in locations unfit for human habitation. However, it is estimated that approximately four times this number of families flow in and out of homelessness during the course of a year. Funding is provided for a mix of permanent supportive housing and temporary rent assistance for over 1,000 families.

Reduce Homelessness: Youth

More than 13,000 young people ages 12 to 24 across the state are homeless, yet half of Washington’s counties have no shelter beds or housing options for youth. Funding is provided to expand housing services to youth with two approaches: expanding shelter beds, outreach and housing to unserved areas of the state and providing infrastructure to leverage the Anchor Community Initiative, a partnership with A Way Home Washington.

Reduce Homelessness-Rent Assistance

Washington has received federal approval to use Medicaid funding to provide the supportive services necessary to stably house the highest-need chronically homeless people. But since Medicaid does not pay rent, most of the people eligible to receive these services remain homeless. Funding is provided for permanent supportive housing services to bring 1,000 vulnerable people inside by leveraging the benefits offered through the Medicaid Foundational Community Supports program.

MRSC Funding

The Municipal Research and Services Center (MRSC) is a nonprofit organization that helps local governments in Washington better serve their citizens by providing technical assistance on a variety of topics. State funding is provided through the department to support the work of the MRSC. Pass-through funding is provided to maintain staffing levels that will enable the MRSC to continue to provide quality technical assistance related to audit standards, bidding and purchasing laws, public records, and cybersecurity.

Statewide Broadband Office

Legislation proposed by the Governor will create the Governor’s Statewide Broadband Office within the department to coordinate wider access to high-speed internet in unserved and underserved communities. The office will promote economic vitality and serve the needs of the state’s education, health care and public safety systems through greater broadband access. The office will work in coordination with the Public Works Board to administer a grant and loan program for broadband infrastructure. Funding is provided to carry out the department's new responsibilities.

State-Owned Buildings/SEEP

Major greenhouse gas-emitting state cabinet agencies are required, under Executive Order 18-01, to ensure that their agencies reduce building energy use and develop a portfolio of cost-effective investments to meet the goals of reduced energy use. Data and information that are relevant to developing these portfolios include information about the energy use, condition and upgrade plans for agency facilities. This information is spread across several systems and processes. This funding will enable the department's State Efficiency and Environmental Performance (SEEP) program to work with the Washington State University Energy Program to provide assistance to cabinet agencies in compiling information from various sources to develop lists of cost-effective projects that increase energy efficiency and contribute to greenhouse gas reductions.

State Public Employee Benefits Rate

Health insurance funding is provided for state employees who are not represented by a union, who are covered by a bargaining agreement that is not subject to financial feasibility determination, or who are not part of the coalition of unions for health benefits. The insurance funding rate is $977 per employee per month for fiscal year 2020 and $978 per employee per month for fiscal year 2021.

WFSE General Government

Funding is provided for a collective bargaining agreement with the Washington Federation of State Employees - General Government. The agreement includes a general wage increase of 3 percent, effective July 1, 2019; a general wage increase of 3 percent, effective July 1, 2020; premium, shift, and other special pay changes, and increases in targeted job classifications. Employee insurance included in the agreement is displayed in a separate item.

State Rep Employee Benefits Rate

This provides health insurance funding as part of the master agreements for employees who bargain for health benefits as part of a coalition of unions. The insurance funding rate is $977 per employee per month for fiscal year 2020 and $978 per employee per month for fiscal year 2021.

Non-Rep General Wage Increase

Funding is provided for wage increases for state employees who are not represented by a union or who are covered by a bargaining agreement that is not subject to financial feasibility determination. It is sufficient for a general wage increase of 3 percent, effective July 1, 2019, and a general wage increase of 3 percent, effective July 1, 2020. This item includes both general government and higher education workers.

Non-Rep Premium Pay

Funding is provided for increases in premium pay for state employees who are not represented by a union or who are covered by a bargaining agreement that is not subject to financial feasibility determination. Funding is sufficient to support changes in shift differential, call back and standby pay, as well as a 5 percent increase for employees working in King County.

Non-Rep Targeted Pay Increases

Funding is provided for classified state employees who are not represented by a union for pay increases in specific job classes in alignment with other employees.

PERS & TRS Plan 1 Benefit Increase

For eligible Public Employees' and Teachers' Retirement Systems Plan 1 members, this item provides a one-time, ongoing increase of 3 percent, up to a maximum of $62.50 per month.

Non-Rep Salary Schedule Revision

This funds a revised salary schedule for non-represented employees in information technology jobs, in alignment with other state employees.

Orca Transit Pass Funding Transfer

This moves funding for employee transit passes from agencies to WSDOT, which administers the program. The transfer includes both funding added in 2019-21 for expanded access, as well as funding that was provided in the 2017-19 budget.

Health Coalition FSA Fund Transfer

This moves funding for negotiated medical flexible spending arrangements (FSA) from individual agency budgets. It will be provided to the Health Care Authority, which will administer the benefit.

Electric Vehicle Infrastructure

Agency budgets are adjusted to reflect each agency’s estimated portion of increased fee for service charges from the Department of Enterprise Services to expand electric vehicle infrastructure for the state Motor Pool fleet.

Archives/Records Management

Agency budgets are adjusted to reflect each agency’s allocated share of charges for the state archives and state records center.

Audit Services

Agency budgets are adjusted to reflect each agency’s allocated share of charges for state government audits.

Legal Services

Agency budgets are adjusted to reflect each agency’s anticipated share of legal service charges.

CTS Central Services

Agency budgets are adjusted to reflect each agency’s allocated share of charges from the Consolidated Technology Services Agency (WaTech) for the Office of the Chief Information Officer, Office of Cyber Security, state network, security gateways, and geospatial imaging services.

DES Central Services

Agency budgets are adjusted to reflect each agency’s allocated share of charges from the Department of Enterprise Services (DES) for campus rent, utilities, parking, and contracts; a capital project surcharge; financing cost recovery; public and historic facilities; real estate services; risk management services; personnel service rates; the Perry Street child care center; and the department’s enterprise applications.

OFM Central Services

Agency budgets are adjusted to reflect each agency’s allocated share of charges from the Office of Financial Management (OFM) for the One Washington project and OFM enterprise systems.