Budget Policy Highlights · Highlights Budget &Policy GOVERNOR CHRIS GREGOIRE Proposed 2011-13...

HighlightsBudget & Policy

GOVERNOR CHRIS GREGOIRE

Proposed 2011-13

Transforming Washington’s

Budget

OFFICE OF THE GOVERNOR

DECEMBER 2010

!"#$%%"&&"'$()#*)+,"-,#./(0#'/,$1/2/(/),3#(0/,#'"%4&)-(#/,#$5$/2$12)#/-#$2()+-$(/5)#6"+&$(,#$-'#%$-#1)#"1($/-)'#17#%"-($%(/-8#(0)#96:%)#"6#;/-$-%/$2#<$-$8)&)-(#$(#=>?@A#B@CD@E?@#"+#!!F#=>?@A#B@CD@?GBH

!"#"$%&'(%)*+#"$*%,$!!!!"#$%"!&"'#(

!"#$#%&'()*++,+-

OFFICE OF THE GOVERNOR

DECEMBER 2010

./'0&1(2(!#3456740834081%

9":;%<#"=4;0>:%84;01#;?%(

./'0&1

TABLE OF CONTENTS

1 Message from the Governor

4 Proposed Budget Expenditures

5 Washington Economic Outlook

6 2011–13 Balance Sheet

7 2011–13 Balance Sheet Detail

8 Transforming Washington’s Budget

12 Education

17 Health, Human Services and Public Safety

21 Natural Resources

23 Transportation, Capital and Economic Development

30 Government E!ciency

MESSAGE FROM THE GOVERNOR

!!"#$%!"&'()!%!*!'+!*"+,-!./"0!1"$2,3!"+4*$5"6$3!"1,+'!..!*"$")!%!..,4'"4# "+6,."-$7',+&*!"$'*"2!'7+6/"864.!"164"6$3!"&'*!).+$'*"+6$+"+6!"%64,%!."1!"#$%!"$)!"+4&76"$'*"2!$*!).6,(",."%),+,%$2/"86!5"$2.4"9'41"+6$+"4&)":!++!)"*$5."$)!"$6!$*"4# "&.";"+6$+"1!"1,22"!-!)7!".+)4'7!)<"-4)!"!#=%,!'+"$'*"-4)!"!##!%+,3!/

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

86!")!$2,+5"4# "+6,.")!%!..,4'",."+6$+",+"6$."*,.-$'+2!*"-$'5"4# "+6!"()47)$-."+6$+"><"$'*"-,22,4'."4# "4+6!).",'"+6!".+$+!<"3$2&!/"86!5"$)!"+6!"()47)$-."+6$+"()4+!%+"4&)"-4.+"3&2'!)$:2!/"I)47)$-."+6$+"()43,*!"6!$2+6"%$)!"#4)"+6!"2!.."#4)+&'$+!/"I)47)$-."+6$+"6!2("4&)".%6442."*!2,3!)"$"=).+J%2$.."!*&%$+,4'"#4)"4&)"%6,2*)!'/"I)47)$-."+6$+"()43,*!"+6!".$#!+5"$'*".!%&),+5"+6$+"E$.6,'7+4'"3$2&!./

>'"$'5"4+6!)"+,-!">"14&2*"'4+".,7'"+6,.":&*7!+/""""

>+F."*,#=%&2+"+4".&((4)+".4-!+6,'7"+6$+"74!."$7$,'.+"$22"1!"6$3!"$%%4-(2,.6!*"43!)"+6!"($.+".,D"5!$)./"K&+"+6!.!"$)!"+6!"%,)%&-.+$'%!."1!"='*"4&).!23!.",'<"$'*"1!"6$3!":!!'"2!#+"1,+6"#!1"%64,%!./""

04)+5J!,76+".+$+!."#$%!*"2$)7!".64)+#$22."#4)"+6!,)"?@@LBAA":&*7!+.<".64)+#$22."+6$+"1!)!"%$&.!*":5"+6!"2$)7!.+"*!%2,'!",'".+$+!"+$D")!3!'&!"4'")!%4)*/

E$.6,'7+4'"1$."'4+",--&'!"#)4-"+6!.!"'$+,4'$2"+)!'*./"E!"*,*"'4+".,+",*25":5";",'.+!$*"1!"+449",--!*,$+!"$%+,4'"+4"%24.!"$"MA?":,22,4'".64)+#$22"43!)"+6!"($.+"+6)!!"5!$)./"E!"%&+".+$+!".(!'*,'7":5"MN/A":,22,4'/"E!".6)$'9"+6!"(&:2,%"14)9"#4)%!":5"O<?@@"(!4(2!<",'.+,+&+!*"+!-(4)$)5"2$54## "*$5.<"#)4P!"+)$3!2"$'*"!2,-,'$+!*"4+6!)"!D(!'.!./""

>"1,.6">"%4&2*".$5"+6$+"+6,'7."6$3!",-()43!*"#4)"+6!"?@AABAC":&*7!+"(!),4*/"Q'#4)+&'$+!25<"+6!5"6$3!"14).!'!*/">+"%4'+,'&!."+4"7!+"-4)!"!D(!'.,3!"#4)"+6!".+$+!"+4"()43,*!"+6!".$-!"2!3!2"4# ".!)3,%!./"R!-$'*"#4)".+$+!".!)3,%!.",."$+",+."7)!$+!.+"16!'"+6!"!%4'4-5",."$+",+."14).+/"86!"#$%+",."+6$+",+"1,22"%4.+"&."-4)!"+6$'"M?":,22,4'"-4)!"+4"()43,*!"+6!".$-!".!)3,%!.",'"?@AABAC"$."1!"*,*",'"?@@LBAA/"E!".,-(25"6$3!"-4)!"(!4(2!"1!"-&.+".!)3!<"$'*"+6$+"%4.+."-4)!"-4'!5/"

“It’s not just about this crisis — it’s

about setting our state on a trajectory

that ensures a strong !nancial

foundation for our kids and grandkids.”

A

E6,2!"4&)"%4.+."%4'+,'&!"+4"),.!<")!3!'&!"7)41+6",.".+$7'$'+/"S&)"-4.+")!%!'+".+$+!"#4)!%$.+."1!)!"T42+,'7/">'"U!(+!-:!)"+6!".+$+!"24.+"MA/V":,22,4'<"$'*",'"W43!-:!)"+6!".+$+!"24.+"$'"$**,+,4'$2"MA/?":,22,4'/"H."1!"(2$'"4&)"?@AABAC":&*7!+<"1!"#$%!"$"MV/X":,22,4'".64)+#$22/"S'"+4("4# "+6!"%&+."1!F3!"$2)!$*5"-$*!<"4&)"4(+,4'."$)!"2,-,+!*/""

K&+"1!"-&.+"'4+"4'25"%&+<"1!"-&.+")!.+)&%+&)!<"-4*!)',P!<"(),4),+,P!"$'*"(4.,+,4'"4&)".+$+!"$."$"?A.+"%!'+&)5"743!)'-!'+/""

>+F."'4+"T&.+"$:4&+"+6,."%),.,.";",+F."$:4&+".!++,'7"4&)".+$+!"4'"$"+)$T!%+4)5"+6$+"!'.&)!."$".+)4'7"='$'%,$2"#4&'*$+,4'"#4)"4&)"9,*."$'*"7)$'*9,*./"

E!"+&)'!*"+4"+6!"(!4(2!"4# "4&)".+$+!"+4".42,%,+"+6!,)".42&+,4'."+4"+6!"%),.,.";"#)4-".+$+!"14)9!)."164".!!"-4'!5J.$3,'7",*!$."!3!)5"*$5<"+4"%,+,P!'."164F3!"-$*!"%6$'7!.",'"+6!,)"2,#!.+52!."+4"$*$(+"+4"+6!")!%!..,4'<"+4"$"7)4&("4# "%,+,P!'."164-">"$.9!*"+4".!)3!"4'"+6!"8)$'.#4)-,'7"E$.6,'7+4'F."K&*7!+"Y4--,++!!/"E!"%4'*&%+!*"+41'"6$22"-!!+,'7.",'"8$%4-$<"Z3!)!++<"U(49$'!"$'*"[$'%4&3!)/"E!"2$&'%6!*"$"1!:.,+!"$'*")!%!,3!*"-4)!"+6$'"?<@@@",*!$."$'*"AC\<@@@"34+!."4'"+64.!",*!$.<"16,%6"7!'!)$+!*"%4'.,*!)$:2!"*,$247&!/"

E!")!3$-(!*"+6!"I),4),+,!."4# "]43!)'-!'+"()4%!.."+4"#4%&."4'"!..!'+,$2"3$2&!."$'*"$.9"%),+,%$2"^&!.+,4'."+4"*!+!)-,'!"16,%6"()47)$-."1!".64&2*"%4'+,'&!"+4"#&'*<"16,%6".64&2*":!"%6$'7!*"4)"%4'.42,*$+!*<"$'*"16,%6".64&2*":!"!2,-,'$+!*/"86!.!"%),+,%$2"^&!.+,4'."6!2(!*"&."='*"()47)$-."1!"%4&2*")!^&,)!"4+6!)."+4"#&'*"$'*"+64.!"1!"%4&2*",-()43!"+6)4&76"+6!"&.!"4# "(!)#4)-$'%!",'%!'+,3!."$'*"%4'+)$%+./

86!")!.&2+",."$"?@AABAC":&*7!+"+6$+"%4'+$,'."*!3$.+$+,'7")!*&%+,4'.<":&+"$2.4"-$T4)"+)$'.#4)-$+,3!",*!$."+4"()!($)!"4&)".+$+!"#4)"$"'!1"=.%$2")!$2,+5/"

MESSAGE FROM THE GOVERNOR

NOVEMBER 2010 FORECAST DROPPED

$809 MILLION:$4.6 BILLION SHORTFALL

SEPTEMBER 2010 FORECAST DROPPED

$670 MILLION:$3.8 BILLION SHORTFALL

2011!13 FORECASTED SHORTFALL(GENERAL FUND – STATE)

-$3.1 Billion

-$3.8 Billion

-$4.6 Billion

JUNE 2010 $3.1 BILLION

FORECASTED SHORTFALL

Office of Financial ManagementDecember 2010

?

MESSAGE FROM THE GOVERNORK&+"+6!":4++4-"2,'!",."+6$+"+6!.!"%&+."1,22",-($%+"(!4(2!/"86!".$#!+5"'!+"1,22":!".+)!+%6!*"+6,'",'".4-!"(2$%!."$'*"!2,-,'$+!*"!'+,)!25",'"4+6!)"(2$%!./"04)"+6!"#&'%+,4'."+6$+"743!)'-!'+"'4"24'7!)"1,22":!"$:2!"+4"()43,*!<"1!"-&.+"+&)'"+4"'!,76:4).<"(),3$+!"%6$),+,!.<"#$,+6J:$.!*"4)7$',P$+,4'."$'*"4+6!)"24%$2"()47)$-./"S&)"%4--&',+,!.<"-4)!"+6$'"!3!)<"1,22":!"$.9!*"+4".+!("&(/"

S'!"(4,'+">"1$'+"+4"-$9!"(!)#!%+25"%2!$)_"U+$+!"!-(245!!."1,22"*4"+6!,)"($)+"+4"6!2("&."7!+"+6)4&76"+6,.")!%!..,4'/"E!"$)!"()4(4.,'7"+4"%&+"($5<"6$3!"+6!"%4.+"4# "6!$2+6"%$)!",'G$+,4'":4)'!":5"4&)"14)9!)."$'*")!#4)-".+$+!"(!'.,4'"(2$'./"K&+"1!"-&.+"%4'+,'&!"+6!",-(4)+$'+"14)9"(!)#4)-!*":5"4&)".+$+!"!-(245!!."$'*"$.9"#4)".6$)!*".$%),=%!<"'4+"*!-$'*"+6$+"+6!5".64&2*!)"+6!"1642!":&)*!'/

E!"1,22"%4-!"4&+"4# "+6,."`7)!$+")!%!..,4'<a":&+",+"1,22"+$9!"+,-!/"U+$+!")!3!'&!."+5(,%$225"2$7"$:4&+"+14"5!$).":!6,'*"+6!")!%43!)5<".4"16,2!"1!"9'41":!++!)"+,-!."$)!"$6!$*<"+6!5"1,22"'4+"$)),3!",'"+,-!"+4",-($%+"+6,.":&*7!+/""

b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

86!.!",',+,$+,3!."$)!"T&.+"+6!":!7,'','7/">"$-"%4--,++!*"+4"+)$'.#4)-,'7"+6!".+$+!":&*7!+"$'*"+)$'.#4)-,'7"+6!"1$5",'"16,%6"+6!".+$+!"14)9."#4)"E$.6,'7+4',$'./"86!".+!(.">"$-"()4(4.,'7"1,22")$*,%$225"$2+!)"+6!"2$'*.%$(!"4# ".+$+!"743!)'-!'+/"c!7,.2$+4)."6$3!"$":,7"%6$22!'7!":!#4)!"+6!-<":&+"+47!+6!)"1!"1,22"-$9!")!#4)-"6$((!'/

E!"1,22"*4"16$+"1!"6$3!"+4"*4"+4"7!+"+6)4&76"+6!.!")4&76"+,-!./"E!"1,22"2$5"+6!"#4&'*$+,4'"#4)"$"#&+&)!"+6$+"1,22"4'%!"$7$,'")!G!%+"+6!"3$2&!."4# "E$.6,'7+4',$'./"E!"6$3!"$"*,#=%&2+"T4:"+4"*4<":&+">":!2,!3!"1!"%$'"*4",+/"

U,'%!)!25<"

]43!)'4)"Y6),."])!74,)!

C

PROPOSED BUDGET EXPENDITURES

General Fund-State: OperatingDistribution of 2011–13 General Fund-State Expenditures

All Funds: Operating Plus Transportation CapitalDistribution of 2011–13 All Funds Expenditures

Public Schools42.8%

HigherEducation

8.3%

Social & Health Services17.9%

Corrections 5.3%

Bond Retirement & Interest 6.1%General Government 2.6%

Natural Resources 1.0%All Other* 1.5%

Health Care Authority

14.5%

Public Schools22.7%

HigherEducation

15.9%

Social & Health Services15.5%

Corrections 2.5%

Bond Retirement & Interest 4.6%

General Government 5.7%

Natural Resources 2.2%

All Other* 4.2%

Transportation 11.4%

Health Care Authority

15.3%

Dollars in MillionsPublic Schools $13,746Higher Education 2,677Social & Health Services 5,768Health Care Authority 4,650Corrections 1,693Bond Retirement & Interest 1,952General Government 829Natural Resources 332All Other* 477Total $32,124*All other includes Other Education, Transportation, Contributions to Retirement Systems and Other Appropriations

Dollars in MillionsPublic Schools $16,126Higher Education 11,262Social & Health Services 11,012Health Care Authority 10,860Corrections 1,768Bond Retirement & Interest 3,233General Government 4,057Natural Resources 1,530Transportation 8,117All Other* 2,959Total $70,924*All other includes Other Education, Contributions to Retirement Systems and Other Appropriations

V

WASHINGTON’S ECONOMIC OUTLOOKThe outlook for the 2011–13 budget period can be characterized as less-than-vibrant for an economy in recovery. After two years of losses in employment and real per capita income, Washington state’s economy should experience a slight upturn in !scal year 2010 and slowly accelerate over the following two years.

Washington di"ers little from the nation in job growth. Total employment here is not expected to return to its earlier peak until the second quarter of 2013 — a loss-recovery cycle of more than 60 months. Where Washington is expected to have an advantage, however, is in personal income growth. And while our rate of job growth is expected to be nearly identical to the national rate, the types of jobs will di"er measurably, particularly in terms of wages.

Historically, Washington’s per-capita income has surpassed that of the nation due to our higher-skilled work force. The state’s two largest private employers, Boeing and Microsoft, employ large numbers of highly skilled and highly paid workers. The combination of high wages and above-average job growth, particularly in !scal year 2013, will boost Washington’s personal income and help us maintain our per capita income edge. The other area in which Washington has a comparative economic advantage is in international trade. Our workers provide the traditional “hub” services of warehousing and distribution for goods from Washington, other states and overseas. These jobs typically pay well, which also gives Washington an income edge.

In the near term, Washington appears to be weighed down by the same cyclical forces a"ecting other states and the economy nationwide. The medium- and long-term economic outlooks, however, should build on Washington’s strengths. The bene!ts of those strengths are con!rmed in a recent report released by the Meredith Whitney Advisory Group LLC. The report, which examined America’s 15 largest states (measured by their gross state product) and rated their !nancial conditions, ranked Washington third best behind Texas and Virginia. ""

-4%

-2%

0%

2%

4%

6%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

PERC

ENTC

HANG

EFRO

MPR

EVIO

USYE

AR

FISCAL YEAR

PERCENT CHANGE IN NON-FARM PAYROLL EMPLOYMENTWASHINGTON STATE VS. U.S. AVERAGE

ACTUAL FORECASTWASHINGTON

U.S.

OFFICE OF FINANCIAL MANAGEMENTDECEMBER 2010

N

2011–13 BALANCE SHEETINCLUDING GOVERNOR’S PROPOSED 2011 SUPPLEMENTAL BUDGET

GENERAL FUND-STATE(DOLLARS IN MILLIONS)

RESOURCES

BEGINNING FUND BALANCE $85

NOVEMBER 2010 REVENUE FORECAST 32,605

MANDATED TRANSFER TO RAINY DAY FUND (290)

MANDATED TRANSFER TO EDUCATION CONSTRUCTION ACCOUNT* (204)

OTHER FUND TRANSFERS (INCLUDING USE OF RAINY DAY FUND) 679

BUDGET-DRIVEN REVENUE AND LEGISLATION 130

TOTAL RESOURCES (INCLUDING BEGINNING FUND BALANCE) 33,005

EXPENDITURES

GOVERNOR’S PROPOSED BUDGET 32,124

RESERVES

GENERAL FUND - STATE $881

* Chapter 27, Laws of 2010, 1st Extraordinary Session

X

BUDGET-DRIVEN REVENUE AND LEGISLATION2011–13 IMPACT OF SENATE BILL 6892 (TEMPORARY PENALTY AND INTEREST WAIVER) $(14.9)

ADJUSTMENT TO LIQUOR BOARD DISTRIBUTIONS BASED ON BUDGETED SPENDING (1.8)

(16.7)

LEGISLATION TO MOVE CERTAIN CIGARETTE TAX REVENUE TO GENERAL FUND* 146.0

FUND TRANSFERS

EXTENSION OF LIQUOR PRICE MARK-UP (LIQUOR REVOLVING ACCOUNT) 85.0SUSPEND GF-S TRANSFER TO EDUCATION CONSTRUCTION ACCOUNT 204.0NO REVERSIONS SENT TO EDUCATION SAVINGS ACCOUNT 45.0TRANSFERS TO GENERAL FUND FROM:

AQUATIC LANDS ENHANCEMENT ACCOUNT 7.0THURSTON COUNTY CAPITAL FACILITIES ACCOUNT 8.0CHARITABLE, EDUCATIONAL, PENAL AND REFORMATORY INSTITUTIONS ACCOUNT 9.0TREASURERS SERVICE ACCOUNT 20.0FLOOD CONTROL ASSISTANCE ACCOUNT 2.0WASTE REDUCTION/LITTER ACCOUNT 4.0ECONOMIC DEVELOPMENT STRATEGIC RESERVE ACCOUNT 4.2LIQUOR CONTROL BOARD CONSTRUCTION AND MAINTENANCE ACCOUNT 1.0DEPARTMENT OF RETIREMENT SYSTEMS EXPENSE ACCOUNT 0.5

389.7

USE OF BUDGET STABILIZATION (RAINY DAY) ACCOUNT 289.6

$679.3

* Under proposed Fiscal Year 2011 legislation, cigarette tax revenue now going to the Education Legacy Trust Account would go to the General Fund-State. A like amount of Education Legacy Trust Account expenditures are moved to General Fund support, so there is no net change to ending reserves.

2011–13 BALANCE SHEET — DETAILGENERAL FUND-STATE(DOLLARS IN MILLIONS)

\

TRANSFORMING WASHINGTON’S BUDGET

86!".+$+!"4# "E$.6,'7+4'<",'"$**,+,4'"+4"$2-4.+"!3!)5"4+6!)".+$+!<"6$.":!!'"'$3,7$+,'7"+6)4&76"3!)5".+4)-5":&*7!+"1$+!)."*&),'7"+6!"($.+"+6)!!"5!$)./"Z3!'":!#4)!"+6!"'$+,4'$2")!%!..,4'".+)&%9<"+6!".+$+!"#$%!*"$".,P$:2!".64)+#$22",'"?@@LBAA"*&!"+4"),.,'7"6!$2+6"%$)!",'G$+,4'<"-4)!".+&*!'+.",'"(&:2,%".%6442.<"-4)!",'%$)%!)$+!*"(),.4'!)."$'*"6,76!)".+$+!"!-(245!!"(!'.,4'"4:2,7$+,4'.<"$22"4# "16,%6"%4.+"+6!".+$+!"$'"$**,+,4'$2"MV/?":,22,4'/"86!")!%!..,4'"%4-(4&'*!*"+6,."()4:2!-"16!'".+$+!")!3!'&!"*)4((!*"M\/O":,22,4'/"d!3!'&!"*!%2,'!."1!)!"%$&.!*":5"241!)"2!3!2."4# "%4'.&-!)".(!'*,'7"$."1!22"$."(2&--!+,'7"64-!"3$2&!."$'*".$2!./"

86!"]43!)'4)"$'*"+6!"c!7,.2$+&)!"%24.!*"$"MA?":,22,4'".64)+#$22",'"+6!"?@@LBAA":&*7!+"+6)4&76_"» MN/A":,22,4'",'"%&+."$'*".$3,'7."» MC/X":,22,4'",'"#!*!)$2"#&'*."» M?/N":,22,4'",'"#&'*"+)$'.#!)."$'*"&.!"4# ")!.!)3!."» M\XA"-,22,4'",'")!3!'&!"!'6$'%!-!'+."e.4-!"4# "16,%6"!D(,)!*",'"R!%!-:!)"?@A@"*&!"+4"+6!"($..$7!"4# ">',+,$+,3!"AA@\f

g!+"+6!"()4:2!-."6$3!"'4+"74'!"$1$5/"86!"?@AABAC":&*7!+",."$2.4"%6$22!'7!*":5"),.,'7"%4.+."$'*"*)4((,'7")!3!'&!<".4-!"4# "16,%6"$)!_

@:%&3#:'%"B"b4)!"E$.6,'7+4',$'."$)!"+&)','7"+4"+6!".+$+!"#4)"6!$2+6"%$)!<".4%,$2".!)3,%!."$'*"(&:2,%"!*&%$+,4'"#4)"+6!,)"%6,2*)!'/"H**,+,4'$225<"-4)!"+6$'"C@<@@@"(!4(2!"6$3!"$2)!$*5"!D6$&.+!*"+6!,)"&'!-(245-!'+":!'!=+.<"$'*"+6!"'&-:!)"1,22"-&2+,(25",'"+6!"-4'+6."$6!$*/"b$'5"1,22"$((25"#4)"#44*".+$-(.<"(&:2,%"$..,.+$'%!"$'*"b!*,%$,*/"U4-!"4# "+64.!"1,+6"%6,2*)!'"-$5"$((25"#4)"8!-(4)$)5"H..,.+$'%!"#4)"W!!*5"0$-,2,!."e8HW0f/

!&;%4#;(5#%1%(B"h!!(,'7"&("1,+6"+6!".+$+!F."(!'.,4'"4:2,7$+,4'."1,22"%4.+"$'"$**,+,4'$2"MNOV"-,22,4'<":!#4)!",-(2!-!'+$+,4'"4# "+6!"]43!)'4)F."()4(4.!*")!#4)-./

A&'&":3(%14=/3/%(</;'%"B"d!(2$%,'7"-4'!5"1!")!%!,3!*"#)4-"+6!"#!*!)$2"743!)'-!'+",'"+6!"0,.%$2"U+$:,2,P$+,4'"I$%9$7!"1,22"%4.+"+6!".+$+!"$'"$**,+,4'$2"M?":,22,4'/

>'*!(!'*!'+"4# "+6!.!"!.%$2$+,'7"%4.+.<"+6!"!%4'4-5",.".+,22"6$-.+)&'7":5"2$77,'7"%4'.&-!)"%4'=*!'%!"+6$+"*!()!..!."$'+,%,($+!*")!3!'&!."$'*".241."64&.,'7".+$)+./"04)!%$.+!)."!D(!%+"$"%4'+,'&$+,4'"4# "+6!.!")!3!'&!J*$-(!','7"+)!'*.",'+4"+6!"'!D+":&*7!+"(!),4*/"86!"2$.+"+14"#4)!%$.+.":5"+6!"Z%4'4-,%"$'*"d!3!'&!"04)!%$.+"Y4&'%,2"6$3!"()!*,%+!*"MA/N":,22,4'",'"*!%)!$.!*")!3!'&!"#4)"+6!"'!D+":,!'',&-<"16,%6"%)!$+!."$"MV/X":,22,4'".64)+#$22"#4)"+6!"?@AABAC":&*7!+/

H'"$**,+,4'$2"%4-(2,%$+,4'",'"+6!".+$+!F.":&*7!+,'7"()4%!..",."+6!"+,76+"%4'.+)$,'+."4'"16!)!"1!"%$'"%&+/"U,D+5"(!)%!'+"4# "+6!":&*7!+",."i4## "2,-,+.F"*&!"+4"%4'.+,+&+,4'$2<"2!7$2"$'*"%4'+)$%+&$2"4:2,7$+,4'.<"$'*"#!*!)$2")!^&,)!-!'+./"86!.!"()47)$-.",'%2&*!"hJA?"!*&%$+,4'<"-$'*$+4)5"-!*,%$2"$..,.+$'%!<"*!:+".!)3,%!"$'*"(!'.,4'./"b4)!"G!D,:,2,+5",."$3$,2$:2!",'"+6!")!-$,','7"V@"(!)%!'+"+6$+",'%2&*!."%4))!%+,4'.<"!$)25"2!$)','7<"6,76!)"!*&%$+,4'<"'4'J:$.,%"hJA?"!*&%$+,4'<"'4'J-$'*$+4)5".4%,$2".!)3,%!."$'*"6!$2+6"%$)!";".!)3,%!."+6$+"4&)"%,+,P!'."3$2&!"6,7625/"

84".423!"+6,."&'()!%!*!'+!*":&*7!+"%),.,.<"]43!)'4)"])!74,)!"2$&'%6!*"$"+)$'.#4)-$+,4'$2":&*7!+,'7"()4%!../

O

TRANSFORMING WASHINGTON’S BUDGETA4"%1B(+6!"]43!)'4)")!,'#4)%!*"+6!"I),4),+,!."4# "]43!)'-!'+";"4)"IS]";":&*7!+,'7"()4%!../"U6!"#4%&.!*"IS]"4'"+6!"3$2&!."+6$+"1!"642*"$."$".+$+!_"» E!"3$2&!"14)2*J%2$.."$%6,!3!-!'+",'"!$)25"!*&%$+,4'<"!2!-!'+$)5<"-,**2!"$'*"6,76".%6442.<"$'*"(4.+.!%4'*$)5"!*&%$+,4'/"» E!"-&.+",-()43!"+6!"6!$2+6"4# "E$.6,'7+4',$'.<"$'*".&((4)+"$'*"9!!(".$#!"4&)"%6,2*)!'"$'*"$*&2+."164"$)!"&'$:2!"+4"%$)!"#4)"+6!-.!23!./"» E!"642*"+6!")!.(4'.,:,2,+5"+4"()43,*!"#4)"+6!".$#!+5"4# "(!4(2!"$'*"()4+!%+,4'"4# "()4(!)+5/"» E!"-&.+"()4+!%+"'$+&)$2")!.4&)%!."$'*"%&2+&)$2"$'*")!%)!$+,4'$2"4((4)+&',+,!./"» E!"-&.+"()4-4+!"!%4'4-,%"*!3!24(-!'+",'"$"7)41,'7"%4-(!+,+,3!"!'3,)4'-!'+/"» Z#=%,!'+".+$+!"743!)'-!'+".!)3,%!."$)!",-(4)+$'+"+4"+6!"(!4(2!"4# "4&)".+$+!/

K&+"IS]"$24'!"*4!."'4+"()43,*!".&#=%,!'+"7&,*$'%!"#4)"-$9,'7"*,#=%&2+":&*7!+"%64,%!./"86!"]43!)'4)"$.9!*"+4&76"^&!.+,4'."4)7$',P!*",'"+6)!!"+6!-!."+4"7&,*!"*!%,.,4'."4'"641"+4",'3!.+".%$)%!"*422$)."$-4'7".4"-$'5"%4-(!+,'7"*!-$'*./"86,."()4%!.."2!*"+4":!++!)"*!%,.,4'."$:4&+"641"+4"+)$'.#4)-"$":&*7!+"1,+6"#$)"2!.."-4'!5"16,2!"-!!+,'7"+6!".+$+!F."-4.+"%),+,%$2"'!!*."*&),'7"+6,."6,.+4),%")!%!..,4'/

FISCAL RESPONSIBILITY"» >."+6!"$%+,3,+5"$'"!..!'+,$2".!)3,%!j"» R4!.".+$+!"743!)'-!'+"6$3!"+4"(!)#4)-"+6!"$%+,3,+5<"4)"%$'",+":!"()43,*!*":5"4+6!).j"» Y$'"+6!"$%+,3,+5":!"!2,-,'$+!*"4)"*!2$5!*",'")!%!..,4'$)5"+,-!.j

MAJORITY OF $35 BILLION BUDGET IS PROTECTEDTIED TO STATE CONSTITUTIONAL OR FEDERAL REQUIREMENTS

K-12 BASICEDUCATION

37%DEBT SERVICE/

PENSIONS6%

MANDATORYMEDICAID/FOSTER

CARE 16%

OTHER HUMANSERVICES

17%HIGHEREDUCATION 8%

GENERAL GOVERNMENT/ OTHER 4%

OTHER K-126%

60% OF THE BUDGET IS PROTECTED

CORRECTIONS 5%

Not protected $14 billion

Protected $21 billion

JUDICIARY 1%

Office of Financial ManagementDecember 2010

L

TRANSFORMING WASHINGTON’S BUDGET"» R4!."+6!"$%+,3,+5"'!!*"+4":!"($,*"#4)"1,+6".+$+!"7!'!)$2"#&'*.j"U64&2*"&.!)."($5"$"(4)+,4'"4# "+6!"%4.+.j"» H)!"+6!)!"#!*!)$2"#&'*."4)"4+6!)"#&'*".4&)%!."$3$,2$:2!"+4".&((4)+"+6,."$%+,3,+5j

EFFICIENCY"» H)!"+6!)!"-4)!"%4.+J!##!%+,3!<"!#=%,!'+"1$5."+4"*4"+6!"$%+,3,+5j

PERFORMANCE"» Y$'"+6!"$%+,3,+5":!"+6!".&:T!%+"4# "$"(!)#4)-$'%!"%4'+)$%+j"» Y$'"+6!"$%+,3,+5":!"+6!".&:T!%+"4# "$"(!)#4)-$'%!",'%!'+,3!j

C&5#;'B"+6!"]43!)'4)"$((4,'+!*"+6!"8)$'.#4)-,'7"E$.6,'7+4'F."K&*7!+"Y4--,++!!/"86,)+5J.,D":&.,'!..<"'4'()4=+"$'*"743!)'-!'+"2!$*!)."4##!)!*"$'*"!3$2&$+!*",*!$./"04&)"+41'"6$22."%4'*&%+!*"$%)4.."+6!".+$+!"*)!1"-4)!"+6$'"A<N@@"%,+,P!'./"H"2,.+"4# ",*!$."1$.".!'+"+4"+6!"]43!)'4)"#4)"%4'.,*!)$+,4'",'"+6!":&*7!+"()4%!..<":$.!*"4'"%,+,P!'"$'*"%4--,++!!",'(&+/"b$'5"4# "+6!.!",*!$."$)!",'%2&*!*",'"+6!"]43!)'4)F.":&*7!+"()4(4.$2"$'*"6!)"(42,%5")!#4)-./

984"'B"$'",'+!)$%+,3!"1!:.,+!"1$."*!3!24(!*"+4"()43,*!"$"#4)&-"#4)"+6!"(&:2,%"+4"($)+,%,($+!"$'*"!3$2&$+!".&77!.+,4'./"b4)!"+6$'"AL<@@@"3,.,+4)."4##!)!*"AC\<@@@"34+!."4'"6&'*)!*."4# ",*!$."+4".$3!"-4'!5"$'*"4(!)$+!"743!)'-!'+"-4)!"!#=%,!'+25/"86!"]43!)'4)"$'*"*,)!%+4)"4# "+6!"S#=%!"4# "0,'$'%,$2"b$'$7!-!'+")!.(4'*!*"+4"+6!"-4.+"(4(&2$)".&77!.+,4'."+6)4&76"3,*!4."$'*"1!:"(4.+,'7."+6$+"*!.%),:!*"16$+",*!$."$)!",'"&.!<"16$+"$)!"&'*!)"%4'.,*!)$+,4'"$'*"165".4-!"$)!'F+"#!$.,:2!/

STATE EMPLOYEES86!".!)3,%!."()43,*!*":5".+$+!"743!)'-!'+"$)!",'"6,76!)"*!-$'*"*&),'7"+,-!."4# "!%4'4-,%"%),.,./""86,."-$9!."+6!"14)9"*4'!":5".+$+!"!-(245!!."!3!'"-4)!"3,+$2<"$'*",+"-$9!."+6!"'!!*"#4)"$"+$2!'+!*"14)9"#4)%!"$22"+6!"-4)!"'!%!..$)5/""

U+$+!"!-(245!!."-&.+".6$)!",'"+6!".$%),=%!"+4"%)!$+!"$":$2$'%!*":&*7!+<":&+"+6!5"%$''4+":!$)"$22"4# "+6!":&)*!'/"86)4&764&+"+6,.")!%!..,4'<"+6!".+$+!"14)9"#4)%!"6$.".6)&'9<"!-(245!!"%4-(!'.$+,4'"6$."*!%2,'!*"$'*"6!$2+6"%$)!"%4.+."6$3!",'%)!$.!*/"86!"(&:2,%"14)9"#4)%!"e,'%2&*,'7"+!$%6!).f",."()4T!%+!*"+4":!"*41'"A@<@@@"(4.,+,4'."#)4-"?@@\B@L"+4"?@AABAC/"86,.",'%2&*!."$"7)!$+!)"+6$'"L"(!)%!'+")!*&%+,4'",'"+6!"'&-:!)"4# "-$'$7!)./"

"S3!)$22"%4-(!'.$+,4'"#4)".+$+!"!-(245!!."6$."*!%2,'!*/"W4"7!'!)$2"1$7!",'%)!$.!.".,'%!"?@@O"6$3!":!!'"-$*!/"Y4-(!'.$+,4'"*!%)!$.!*"*&),'7"?@A@",'"+6!"#4)-"4# "&'($,*"+!-(4)$)5"2$54##.<"16,%6"%4.+"$'"$3!)$7!"!-(245!!"MA\O"(!)"-4'+6/"H:4&+"CN"(!)%!'+"4# "+6!"14)9"#4)%!"1$.".&:T!%+"+4"+!-(4)$)5"2$54##.<"$'*"+6!"()4T!%+!*"=.%$2"5!$)"?@AA".$3,'7."+4"+6!"]!'!)$2"0&'*JU+$+!",."MA@/C"-,22,4'"eM?@/\"-,22,4'"+4+$2"#&'*.f/"86!"]43!)'4)F.":&*7!+"$.9."#4)"$**,+,4'$2"C"(!)%!'+"%4-(!'.$+,4'")!*&%+,4'.",'"?@AABAC/"86!.!"($5"%&+."$)!"+!-(4)$)5"$'*"1,22"!D(,)!"$+"+6!"!'*"4# "+6!":,!'',&-/"86!5"1,22"'4+"$##!%+"!-(245!!"(!'.,4'":!'!=+"%$2%&2$+,4'/"86!"-$''!)",'"16,%6"+6!.!")!*&%+,4'."1,22":!"-$*!"e+!-(4)$)5"2$54##.<".64)+!'!*"14)9"64&).<"!+%/f",.".+,22":!,'7"'!74+,$+!*/"86!".$3,'7."$)!"MA\X"-,22,4'",'"]!'!)$2"0&'*JU+$+!"$'*"M?XL/V"-,22,4'"43!)$22/""

A@

TRANSFORMING WASHINGTON’S BUDGET>'"?@@LBAA<"6!$2+6"%$)!"%4.+."6$3!"),.!'",'"+6!"#4)-"4# "6,76!)"4&+J4#J(4%9!+"%4.+.".&%6"$."%4J($5."$'*"*!*&%+,:2!./"U+$)+,'7",'"?@A?<"!-(245!!."1,22":!"$.9!*"+4"($5"?N"(!)%!'+"-4)!"4# "+6!,)"6!$2+6",'.&)$'%!"()!-,&-./"H'"$3!)$7!"!-(245!!"1,22".!!"6,."4)"6!)"(4)+,4'"4# "6!$2+6"%$)!"()!-,&-."),.!"#)4-"MOX",'"?@A@"+4"MAV\",'"?@AC/

Z-(245!!."1,22"$2.4"($5"-4)!",'"(!'.,4'"%4'+),:&+,4'./"IZdU"?"-!-:!)."1,22"($5"V/NL"(!)%!'+",'"?@AABAC<"&("#)4-"C/L"(!)%!'+",'"?@@LBAA/"86,."1,22"%4.+"$'"$3!)$7!"!-(245!!"$'"!D+)$"MC?"(!)"-4'+6/"86!"]43!)'4)",."+$9,'7"$%+,4'"+4")!,'",'"(!'.,4'"%4.+.<":&+"+6!)!"$)!".+,22"G&%+&$+,4'.":$.!*"4'".+4%9"-$)9!+"(!)#4)-$'%!"$'*"4+6!)"#$%+4)./

U+$+!"!-(245!!."$)!".$%),=%,'7",'"+6!.!"%6$22!'7,'7"+,-!./"]43!)'4)"])!74,)!"$(()!%,$+!."+6!,)"3,+$2"%4'+),:&+,4'."+4"4&)".+$+!"$'*"+6!,)"6!2(",'".!!,'7"+6!".+$+!"+6)4&76"+6,."=.%$2"%),.,./

AA

EDUCATION

EARLY LEARNING

>'3!.+-!'+",'"6,76J^&$2,+5"!$)25"2!$)','7"4((4)+&',+,!."#4)"%6,2*)!'"$'*"($)!'+.",."$"24'7J.+$'*,'7"(),4),+5"#4)"]43!)'4)"])!74,)!/"U6!"9'41."+6$+"!$)25"2!$)','7",."%),+,%$2"+4"%6,2*)!'F.".&%%!..",'"9,'*!)7$)+!'"+6)4&76"A?+6"7)$*!"$'*"+6!"2$&'%6,'7"($*"#4)".&%%!..#&2"%$)!!)."$'*"#&2=22,'7"2,3!./"86!"R!($)+-!'+"4# "Z$)25"c!$)','7"()43,*!."$".+)4'7".+$+!"#4%&."4'"!*&%$+,4'"#4)"4&)"54&'7!.+"%,+,P!'."$'*"()43,*!.".&((4)+"#4)"($)!'+."$."+6!,)"%6,2*)!'F."=).+"$'*"-4.+",-(4)+$'+"+!$%6!)./">'"+6,.")!%!..,4'<"641!3!)<"+6!"]43!)'4)"#$%!."+4&76"*!%,.,4'.",'"()!.!)3,'7"+6!"-4.+"!..!'+,$2"()47)$-."$'*".%$2,'7":$%9"4+6!)./

What We Invest In86!"Z$)25"Y6,2*644*"Z*&%$+,4'"$'*"H..,.+$'%!"I)47)$-"*!2,3!)."6,76J^&$2,+5<"()!J9,'*!)7$)+!'"()47)$-./"0&'*,'7",."()43,*!*"#4)"\<CX?"()!.%6442".24+."#4)"VJ5!$)J42*."$+"$'"$3!)$7!")$+!"4# "MX<XX?/""!"#$%&'()**)+,'-.,./0*'12,345606.7'"8$%$'()**)+,'9::+/62,)6;'<06=>0;?'@AA+2,6B

Y6,2*"%$)!"2,%!'.!)."!'.&)!"+6$+"-4)!"+6$'"\<V@@"%6,2*"%$)!"%!'+!)."$'*"#$-,25"64-!"%6,2*"%$)!"()43,*!)."+6)4&764&+"E$.6,'7+4'"#42241")!^&,)!-!'+.".!+":5"+6!".+$+!".4"%6,2*)!'"$)!",'".$#!<"6!$2+65"$'*"'&)+&),'7"(2$%!./""!"#C%$'()**)+,'-.,./0*'12,341.3./0*B

86!"Z$)25"U!)3,%!."#4)">'#$'+."$'*"84**2!)."I)47)$-"()43,*!.".!)3,%!."+4"%6,2*)!'":,)+6"+4"$7!"C"164"6$3!"*,.$:,2,+,!."$'*k4)"

*!3!24(-!'+$2"*!2$5./"b4)!"+6$'"AO<@@@"!2,7,:2!",'#$'+."$'*"+4**2!)."$'*"+6!,)"#$-,2,!.")!%!,3!",'*,3,*&$2,P!*"!$)25",'+!)3!'+,4'".!)3,%!./"""!"D8%&'()**)+,'-141B"

How We Achieve Savings04%&."2,-,+!*".+$+!"()!.%6442"4((4)+&',+,!."4'"VJ5!$)J42*./"86!":&*7!+"()43,*!."$"V"(!)%!'+",'%)!$.!",'"()!.%6442".24+."#4)"VJ5!$)J42*"%6,2*)!'":5")!*&%,'7".+$+!J#&'*!*"()!.%6442".!)3,%!."+4"CJ5!$)J42*./"H*-,',.+)$+,3!".$3,'7."$)!"$2.4"$%6,!3!*",'"+6!"Z$)25"Y6,2*644*"Z*&%$+,4'"$'*"H..,.+$'%!"I)47)$-/"!"E%$'()**)+,'-145B

Z2,-,'$+!"+6!"Y$)!!)"$'*"E$7!"c$**!)"I,24+"I)47)$-<"16,%6"%)!$+!.",'%!'+,3!."#4)"%6,2*"%$)!"+!$%6!)."+4"$*3$'%!"+6!,)"!*&%$+,4'"$'*"()4#!..,4'$2"*!3!24(-!'+/""!"F%$'()**)+,'-145B

d!*&%!".!$.4'$2"%6,2*"%$)!"$*-,',.+)$+,4'/"U+$+!"#&'*."+4"$*-,',.+!)"%6,2*"%$)!".&:.,*,!."+4".!$.4'$2"$7),%&2+&)$2"14)9!)."+6)4&76"'4'()4=+"4)7$',P$+,4'."$)!"!2,-,'$+!*/"U!$.4'$2"%6,2*"%$)!".&:.,*,!."$)!"'4+"$##!%+!*<":&+"1,22":!"$*-,',.+!)!*":5"+6!"R!($)+-!'+"4# "U4%,$2"$'*"l!$2+6"U!)3,%!.",'"+6!".$-!"-$''!)"$."E4)9,'7"Y4''!%+,4'."Y6,2*"Y$)!".&:.,*,!./""!"#%$'()**)+,'-145B

K"12 EDUCATION

S'!"-,22,4'".+&*!'+."$++!'*"(&:2,%".%6442.",'"E$.6,'7+4'/"86!,)"!*&%$+,4'",."]43!)'4)"])!74,)!F."6,76!.+"(),4),+5"$'*"+6!"($)$-4&'+"*&+5"4# "+6!".+$+!"&'*!)"4&)"

ProposedSpending

$52.3 million

ProposedReduction

$14.7 million

ProposedSpending

$13.8 billion

ProposedReduction

$2.2 billion

A?

Y4'.+,+&+,4'/"U(!'*,'7"4'"!*&%$+,4'"#)4-"9,'*!)7$)+!'"+6)4&76"+6!"A?+6"7)$*!",."+6!".,'72!"2$)7!.+"%4-(4'!'+"4# "+6!".+$+!":&*7!+/"U4"16!'"+,-!."$)!"6$)*<"hJA?"#&'*,'7"-&.+"#4%&."4'"+6!":$.,%./"86!"]43!)'4)F.":&*7!+"()4+!%+.".+$+!":$.,%"!*&%$+,4'"#&'*,'7"+4".%6442.<")!*&%!."4)"!2,-,'$+!."#&'*,'7"#4)"-$'5"3$2&$:2!"()47)$-."+6$+"74":!54'*":$.,%"!*&%$+,4'<"$'*"*!2$5."(6$.,'7",'"$**,+,4'$2"#&'*,'7"#4)":$.,%"!*&%$+,4'"()47)$-./"

K!%$&.!"+!$%6!)"^&$2,+5"$'*"(),'%,($2"2!$*!).6,("$)!"#&'*$-!'+$2"+4".+&*!'+".&%%!..<"+6!"]43!)'4)"()4(4.!."$'",'%!'+,3!"()47)$-"+4")!1$)*".%6442"*,.+),%+."+6$+"14)9"1,+6"+!$%6!)"$'*"(),'%,($2"!-(245!!"7)4&(."+4",-()43!"+!$%6!)"$'*"(),'%,($2"!3$2&$+,4'".5.+!-./"b$,'+$,','7"()47)!.."4'"+6,."-&%6J'!!*!*")!#4)-",.",-(4)+$'+"+4"+6!"24'7J+!)-".&%%!.."4# "4&)"!*&%$+4)."$'*".+&*!'+./

What We Invest InD,+)(E:%45(&'/5:14#;(%&"F45&%(GH+)IJ(E4334#;(K&;&":3(A/;',C1:1&LB(4;53/'4;0M

"» Y4)!"#&'*,'7"#4)":$.,%"+!$%6,'7"$'*"4(!)$+,4'"4# ".%6442./"""!"D$%G'H)**)+,'-145f"» U(!%,$2"!*&%$+,4'".!)3,%!.<",'%2&*,'7"+64.!"#4)"!$)25"2!$)','7/"""!"D%C'H)**)+,'-145'0,3'I32A06)+,'J.K0A;'L/2?6'@AA+2,6B'"» I&(,2"+)$'.(4)+$+,4'<"16,%6",'%2&*!."$'",'%)!$.!"4# "ML@"-,22,4'"#4)"+6!".+$+!F."'!1"+)$'.(4)+$+,4'"#&'*,'7"#4)-&2$/""!"&#M%$'()**)+,'-145B"» 8)$'.,+,4'$2"K,2,'7&$2">'.+)&%+,4'"I)47)$-/""!"DMG%$'()**)+,'-145B"» c!$)','7"H..,.+$'%!"I)47)$-/""!"#GF%C'()**)+,'-145B'

N:O#"($"#0":=%(#/1%4'&(18&(D,+)(E:%45(&'/5:14#;(:"&:B(4;53/'4;0M

"» c!35"!^&$2,P$+,4'<"16,%6"()43,*!."!D+)$".&((4)+"+4".%6442"*,.+),%+."1,+6"6,76!)J+6$'J$3!)$7!"()4(!)+5"+$D")$+!."e+64.!"*,.+),%+."

$)!"-4)!"i()4(!)+5"(44)Ff/"04)"%$2!'*$)"5!$)."?@A?"$'*"?@AC<"+4+$2".+$+!1,*!"$224%$+,4'."#4)"2!35"!^&$2,P$+,4'"$)!")!*&%!*":5"X/C"(!)%!'+/"84"()4+!%+"#&'*,'7"#4)"+6!"-4.+"()4(!)+5J(44)"*,.+),%+.<"+6!"2!35"!^&$2,P$+,4'"()47)$-",.")!.+)&%+&)!*/">+"1,22"%4-(),.!"#4&)"+,!)."4# "*,.+),%+.<"1,+6"+6!"-4.+"()4(!)+5J(44)"*,.+),%+.")!%!,3,'7"+6!".-$22!.+")!*&%+,4'",'".+$+!"#&'*./""!"G88%C'()**)+,'-145B"» I)!.!)3!"$*-,',.+)$+,4'"4# ".+$+!"$..!..-!'+."4# ".+&*!'+"2!$)','7<",'%2&*,'7"*!3!24(-!'+"4# "!'*J4#J%4&).!"$..!..-!'+.",'"6,76".%6442J2!3!2".%,!'%!"$'*"-$+6!-$+,%./""!"D$G%$'()**)+,'-145'0,3'I32A06)+,'J.K0A;'L/2?6'@AA+2,6B"» H22J*$5"9,'*!)7$)+!'"#4)"+6!"241!.+",'%4-!".%6442./""!"88%G'()**)+,'I32A06)+,'J.K0A;'L/2?6'@AA+2,6B""» I)43,*!".(!%,$2,P!*",'.+)&%+,4'$2".!)3,%!."$+"+6!"U%6442"#4)"+6!"K2,'*"$'*"Y!'+!)"#4)"Y6,2*644*"R!$#'!.."$'*"l!$),'7"c4../"0&'*,'7"#4)"+6!".%6442.",'"+6!".!%4'*"5!$)"4# "+6!":,!'',&-"1,22":!")!.+)&%+&)!*"+4",'%2&*!"$'"4(!)$+,4'."$224%$+,4'"$'*"$"(!)J(&(,2"#&'*,'7"$224%$+,4'":$.!*"4'".+&*!'+"!')422-!'+/""!"F$%$'()**)+,'-145N'"#%G'()**)+,'-14</)O06.PJ+A0*B''

K":;1(:;'(1&58;45:3(:%%4%1:;5&($"#0":=%B(4;53/'4;0(18#%&(18:1M

"» U&((4)+".+&*!'+"2!$)','7"$'*"1!22J:!,'7"+6)4&76".%6442":)!$9#$.+"$'*"2&'%6"()47)$-."#4)"241J,'%4-!".+&*!'+./""!"#$%#'()**)+,'-145B"» I)43,*!",'%!'+,3!"7)$'+."#4)".%6442"*,.+),%+."+6$+"!D!%&+!"$7)!!-!'+."1,+6"+!$%6!)"$'*"(),'%,($2"7)4&(."+4",-(2!-!'+"'!1"$'*",-()43!*"+!$%6!)"$'*"(),'%,($2"!3$2&$+,4'".5.+!-./""!"DG%$'()**)+,'-145B"» R!3!24(".+$+!"+!$%6!)"$'*"(),'%,($2"!3$2&$+,4'"-4*!2."$'*"()4#!..,4'$2"*!3!24(-!'+"+442./"'!"&%G'()**)+,'-145B

EDUCATION

AC

U&.(!'*"!-(245!!".$2$)5",'%)!$.!."&'*!)">',+,$+,3!"\C?"#4)"+!$%6!)."$'*"4+6!)"hJA?"!-(245!!./""!"#GF%F'()**)+,'-145B"

U&.(!'*"$''&$2":4'&.!."#4)"W$+,4'$2"K4$)*"%!)+,=!*"+!$%6!)./"H**,+,4'$2":4'&.!."()43,*!*"#4)"W$+,4'$2"K4$)*"%!)+,=!*"+!$%6!)."!-(245!*",'"%6$22!'7,'7".%6442."$)!"$2.4".&.(!'*!*/""!"EE%G'()**)+,'-145B

U&.(!'*"+6!"(2$''!*",'%)!$.!"4# "%$($%,+5",'"$22J*$5"9,'*!)7$)+!'"+6$+"14&2*"6$3!".!)3!*"+64&.$'*."-4)!".+&*!'+./"U%6442."1,22"%4'+,'&!"+4"()43,*!"#&22J*$5"9,'*!)7$)+!'"4'"$"($)!'+J($5":$.,./""!"GM%$'()**)+,'-145B

U&.(!'*"$''&$2",'%)!-!'+".$2$)5",'%)!$.!."#4)"+!$%6!)./"U%6442"*,.+),%+.")!%!,3!"#&'*."#4)"+!$%6!)".$2$)5",'%)!-!'+."#4)",'%)!$.!.",'"+!$%6,'7"!D(!),!'%!"$'*"!$)'!*"%4'+,'&,'7"!*&%$+,4'"%)!*,+./""!"G&%F'()**)+,'-145B

Y6$'7!".+$+!"#&'*,'7"#4)".%6442":&.")!(2$%!-!'+"#)4-"$"*!()!%,$+,4'".%6!*&2!"#&'*!*"43!)"+6!"2,#!"4# "$".%6442":&."+4"$".,'72!".+$+!"$224%$+,4'<"($,*"#4)"$+"+6!"!'*"4# "+6!":&."2,#!"%5%2!/""!"EG%&'()**)+,'-145B

HIGHER EDUCATION

l,76!)"!*&%$+,4'",."+6!"!'7,'!"+6$+"*),3!."$"(!).4'F."!-(245-!'+"$'*",'%4-!"$."1!22"$."+6!".+$+!F."!%4'4-5"$'*"4&)")!%43!)5/"U+&*!'+."1,+6"%!)+,=%$+!."4)"*!7)!!."!$)'"-4)!"43!)"+6!,)"2,#!+,-!."$'*")!(4)+"14)9,'7",'"-4)!"#&2=22,'7"T4:./"E,+6"A@O<@@@".+&*!'+.",'"+6!"#4&)J5!$)"%422!7!".5.+!-"$'*"?@V<@@@",'"+6!"%4--&',+5"$'*"+!%6',%$2"

EDUCATION"» U&((4)+".+&*!'+"6!$2+6"$'*".$#!+5"+6)4&76"+6!".%6442"'&).!"%4)(."$'*"+)$,','7"#4)".%6442".$#!+5"(!).4''!2/""!"G%G'()**)+,'-145B

How We Achieve SavingsZ2,-,'$+!"hJV"%2$..".,P!")!*&%+,4'"#&'*."()43,*!*"+4".%6442"*,.+),%+."$:43!"+6!".+$+!F.":$.,%"!*&%$+,4'"$224%$+,4'."#4)"+!$%6!)./"0&'*,'7",.".&#=%,!'+"+4")!*&%!"%2$..".,P!":5"A/O".+&*!'+."(!)"+!$%6!)"$:43!"+6!".+$+!F.":$.,%"!*&%$+,4'"$224%$+,4'/"'!"#D&%$'()**)+,'-145B

Z2,-,'$+!"+6!"l,7625"Y$($:2!<"4)"],#+!*"I)47)$-<"16,%6"()43,*!."#&'*,'7"+4".%6442"*,.+),%+."#4)"!*&%$+,4'$2"4((4)+&',+,!."*!.,7'!*"+4"%6$22!'7!"6,7625"%$($:2!".+&*!'+./"86!"()47)$-".!)3!."&("+4"?"(!)%!'+"4# "+6!".+&*!'+.",'"!$%6".%6442"*,.+),%+/""!"D8%&'()**)+,'-145B'

Z2,-,'$+!"4)")!*&%!".-$22!)"()47)$-.<"7)$'+."$'*"$224%$+,4'.<",'%2&*,'7"-&2+,J5!$)"(,24+"()47)$-."$'*".(!%,$2,P!*"()47)$-."+6$+"$)!"'4+"%!'+)$2"+4".%6442"4(!)$+,4'./"I)47)$-"!2,-,'$+,4'.",'%2&*!"+6!"K!7,'','7"8!$%6!)"I,24+"b!'+4),'7"I)47)$-<"04%&.!*"H..,.+$'%!"I)47)$-<"U&(!),'+!'*!'+"$'*"I),'%,($2">'+!)'.6,("I)47)$-<"-,**2!"$'*"6,76".%6442"$((2,!*"-$+6"7)$'+.<"c!$*!).6,("H%$*!-5<"%$)!!)"$'*"+!%6',%$2"!*&%$+,4'"()47)$-".+$)+J&("7)$'+.<"d!$*,'!.."+4"c!$)'"I)47)$-"$'*"E$.6,'7+4'"d!$*,'7"Y4)(./"d!*&%+,4'."4# "X"+4"A@"(!)%!'+"$)!"-$*!"+4".!3!)$2"4+6!)".+$+!"()47)$-./""!"FM%D'()**)+,'-145B'

d!*&%!":5"A@"(!)%!'+"+6!"E$.6,'7+4'"H%6,!3!)."$'*"Y422!7!"K4&'*".%642$).6,(."$'*".+&*!'+"4&+)!$%6"()47)$-./""!"MC#7$$$'-145B

U&.(!'*"+6!"U+&*!'+"H%6,!3!-!'+"I)47)$-"&'*!)">',+,$+,3!"\?O<"16,%6"()43,*!.".-$22!)"%2$..".,P!.<"!D+!'*!*"2!$)','7"+,-!"#4)".+&*!'+."$'*"()4#!..,4'$2"*!3!24(-!'+"#4)"+!$%6!)./""!"8&$%#'()**)+,'-145B"

ProposedSpending

$2.7 billion

ProposedReduction

$630.7 million

AV

EDUCATION%422!7!".5.+!-<"*!-$'*"#4)"!')422-!'+."%4'+,'&!."+4".+)$,'".+$+!"$'*",'.+,+&+,4'")!.4&)%!./"

],3!'"+4*$5F."=.%$2"!'3,)4'-!'+<"]43!)'4)"])!74,)!F.":&*7!+"*41'.%$2!.".+$+!".&((4)+"#4)"(&:2,%"%422!7!."$'*"&',3!).,+,!.<"5!+"()43,*!."#4)"$'",'%)!$.!",'"+&,+,4'"+4"-$,'+$,'"+6!"^&$2,+5"4# "4&)",'.+,+&+,4'."1,+64&+")!*&%,'7"$%%!.."+4".+&*!'+./">'"+6!.!"2!$'"+,-!.<".+&*!'+."164":!'!=+".4"7)!$+25"#)4-"6,76!)"!*&%$+,4'"-&.+"%4'+),:&+!"-4)!"+41$)*",+."%4.+/"U+&*!'+"='$'%,$2"$,*"1,22"),.!"+4"6!2("9!!("+&,+,4'"$##4)*$:2!"#4)"'!!*5".+&*!'+./"

What We Invest InS3!)$22"#&'*,'7"#4)"+6!"%4--&',+5"$'*"+!%6',%$2"%422!7!".5.+!-",."-$,'+$,'!*/"86,.".5.+!-".!)3!."-4)!"+6$'"?@V<@@@".+&*!'+.<"-$'5"4# "164-"!')422"+4"&(7)$*!"+6!,)"T4:.".9,22."4)"^&,%925")!+442"#4)"$"'!1"%$)!!)/"""!"D%#'H)**)+,'-145N'"&FC'()**)+,'62)6)+,B

S3!)$22"#&'*,'7"#4)"+14")!.!$)%6"&',3!).,+,!."$'*"#4&)"%4-()!6!'.,3!"&',3!).,+,!."$'*"%422!7!",."-$,'+$,'!*/"b4)!"+6$'"A@O<@@@".+&*!'+."164".!!9"$":$%%$2$&)!$+!<"7)$*&$+!"4)"()4#!..,4'$2"*!7)!!"$)!".!)3!*"$+"+6!".+$+!F."(&:2,%"%422!7!"$'*"&',3!).,+,!./"84"!'%4&)$7!",'.+,+&+,4'."+4",-()43!".+&*!'+"*!7)!!"%4-(2!+,4'")$+!."$'*"+,-!"+4"!$)'"$"*!7)!!<"$"%6$'7!",."-$*!",'":$.!".+$+!"#&'*,'7"#)4-"$224%$+,4'.":$.!*"4'"!')422!*".+&*!'+."+4"$224%$+,4'.":$.!*"4'"+6!"'&-:!)."4# "*!7)!!."!$)'!*/""!"D%$'H)**)+,'-145N'"D%M'H)**)+,'62)6)+,B

86!"U+$+!"W!!*"])$'+"()47)$-"1,22":!",'%)!$.!*"+4"-$+%6"6,76!)"+&,+,4'")$+!./"""!"ED%&'()**)+,'-145B'

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

What We Authorize86!"743!)','7":4$)*."4# "+6!".+$+!"%422!7!"$'*"&',3!).,+,!."$)!"$&+64),P!*"+4")$,.!"+&,+,4'"#4)")!.,*!'+"&'*!)7)$*&$+!".+&*!'+.":5"+6!"#42241,'7"$-4&'+._""!"FF$'()**)+,'62)6)+,B

FY 2012 FY 2013University of WA/ WA State University $940 $1,050Western WA University $670 $740Eastern WA University $545 $595Central WA University $560 $605The Evergreen State College $550 $600State Board for Community and Technical Colleges $280 $305

How We Achieve Savingsd!*&%!".+$+!".&((4)+"4# "6,76!)"!*&%$+,4'",'.+,+&+,4'."$'*"4##.!+"+64.!")!*&%+,4'."1,+6"+&,+,4'",'%)!$.!."$'*"='$'%,$2"$,*"+4"()!.!)3!",'.+,+&+,4'$2"^&$2,+5"$'*".+&*!'+"$%%!../""!"FCC%M'()**)+,'-145B

AN

EDUCATIONd!*&%!".+$+!".&((4)+"4# "6,76!)"!*&%$+,4'",'.+,+&+,4'.":5"$'"$3!)$7!"4# "V/?"(!)%!'+/"86,."(4)+,4'"4# ")!*&%+,4'.",."'4+":$%9=22!*"1,+6"+&,+,4'"$&+64),+5/">'.+,+&+,4'."$)!"7,3!'"G!D,:,2,+5"+4"*!+!)-,'!"641":!.+"+4",-(2!-!'+"+6,.")!*&%+,4'/"Z##!%+."%4&2*",'%2&*!"#!1!)"%4&).!"4##!),'7.<"2$)7!)"%2$..".,P!.<"#!1!)"#$%&2+5"(4.,+,4'."$'*"#!1!)".&((4)+".!)3,%!."#4)".+&*!'+.",# "!#=%,!'%,!."$)!"'4+"#4&'*",'".!)3,%!"*!2,3!)5"4)",'"$*-,',.+)$+,3!"4)"4+6!)"%4.+./""!"D$#%#'()**)+,'-145B

U&.(!'*"!-(245!!".$2$)5",'%)!$.!."&'*!)">',+,$+,3!"\C?"#4)"#$%&2+5"$'*".+$## ",'"+6!"%4--&',+5"$'*"+!%6',%$2"%422!7!./""!"#M%D'()**)+,'-145B'

U&.(!'*".-$22".%642$).6,("()47)$-.".&%6"$."E$.6,'7+4'"U%642$)."$'*"+6!"l!$2+6"I)4#!..,4'."%4'*,+,4'$2".%642$).6,(<"-$+%6,'7"7)$'+."$'*"24$'")!($5-!'+"()47)$-./""!"DG%&'()**)+,'-145B

d!*&%!"+6!"U+$+!"E4)9"U+&*5"I)47)$-"+4".!)3!"?<O@@"#!1!)"'!!*5".+&*!'+./""!"#$%8'()**)+,'-145B

c,-,+".+$+!J.&((4)+!*"!-(245!)"%4'+),:&+,4'."+4"6,76!)"!*&%$+,4'"(!'.,4'"(2$'."+4"X"(!)%!'+"4# ".$2$)5/""!"GM%D'()**)+,'-145B

OTHER EDUCATION AGENCIES

How We Achieve SavingsY24.!"+6!".+$+!"6,.+4),%$2"-&.!&-.",'"8$%4-$"$'*"U(49$'!<"$'*"!2,-,'$+!".+$+!J#&'*!*"!*&%$+,4'$2"()47)$-."$'*"4&+)!$%6"$%+,3,+,!."+6)4&76"+6!".+$+!"6,.+4),%$2".4%,!+,!./"d!+$,'".9!2!+4'".+$#='7"+4"-$,'+$,'"#$%,2,+,!."$'*".!%&)!"%422!%+,4'./"'!"G%#'()**)+,'-145B

Z2,-,'$+!"+6!"E$.6,'7+4'"U+$+!"H)+."Y4--,..,4'/"E4)9"1,22"+)$'.#!)"+4"+6!"R!($)+-!'+"4# "Y4--!)%!"+4"%$))5"4&+"%4)!"#&'%+,4'.".&%6"$."%4'.!)3$+,4'"4# "+6!".+$+!F."$)+"%422!%+,4'."$'*"+4".!!9"7)$'+."$'*"4+6!)"'4'J.+$+!".4&)%!."4# "#&'*,'7/""!"#%G'()**)+,'-145'?0O),K?N'"G$$7$$$'-145'),O.?6.3'6+'*.O./0K.'"D%$'()**)+,'-141N'"D%$'()**)+,'</)O06.PJ+A0*'12,3?B

AX

HEALTH, HUMAN SERVICES AND PUBLIC SAFETY

HEALTH AND HUMAN SERVICES

86!"*!-$'*"#4)"6!$2+6"%$)!"$'*".!)3,%!."+4"3&2'!)$:2!"%6,2*)!'"$'*"$*&2+."%4'+,'&!."+4",'%)!$.!/"b$'5"4# "+6!"6!$2+6"%$)!"$'*".4%,$2".!)3,%!"()47)$-."+6$+".+$+!"743!)'-!'+"()43,*!."$)!"#&'*!*"1,+6"$"%4-:,'$+,4'"4# ".+$+!"$'*"#!*!)$2"-4'!5/"H."$")!.&2+<"1!"-&.+"-!!+"#!*!)$2")!^&,)!-!'+."#4)"+64.!"164")!%!,3!".!)3,%!.<"641"-&%6"1!"($5"#4)"+64.!".!)3,%!.<"$'*"16,%6".!)3,%!."1!"-&.+"()43,*!/"R&!"+4"+6!.!")!^&,)!-!'+.<"+6!"'&-:!)"4# ",'*,3,*&$2."164")!%!,3!".+$+!J()43,*!*"6!$2+6"%$)!",."()4T!%+!*"+4",'%)!$.!":5"A\X<@@@"#)4-"?@A@"+4"?@AC/""

]43!)'4)"])!74,)!"%4'+,'&!."6!)"14)9"+4"()4+!%+"4&)"-4.+"3&2'!)$:2!"%,+,P!'./"U!)3,%!."#4)"(&:2,%"$'*"%2,!'+".$#!+5")!-$,'"6!)"6,76!.+"(),4),+5/"E!"1,22"%4'+,'&!"+4")!.(4'*"+4")!(4)+."4# "$:&.!"$'*"'!72!%+"4# "%6,2*)!'"$'*"$*&2+.<".!)3!"%6,2*)!'",'"+6!"#4.+!)"%$)!".5.+!-<"()43,*!",'J64-!"$'*")!.,*!'+,$2".!)3,%!."+4"+6!"!2*!)25"$'*"*,.$:2!*<"$'*"()43,*!"-!'+$2"6!$2+6"$'*"%6!-,%$2"*!(!'*!'%5"+)!$+-!'+"+4"+64.!"164"-4.+"'!!*",+/""

E6!'!3!)"(4..,:2!<"$**,+,4'$2"#!*!)$2"$'*"24%$2"#&'*."$)!"&.!*"+4"-$,'+$,'"%4)!".!)3,%!./"E!"1,22"$.9"()43,*!)."4# ".&%6".!)3,%!."$."$*&2+"$'*"#$-,25":4$)*,'7"64-!."+4"($5"+6!"#&22"%4.+"+4"+6!".+$+!"#4)"2,%!'.,'7"$'*"43!).,76+/"86,.":&*7!+")!^&,)!*"*,#=%&2+"*!%,.,4'./"H%%4)*,'725<".!)3,%!."+6$+"1!"%$'"'4"24'7!)"$##4)*"1!)!")!*&%!*"4)"!2,-,'$+!*/"

What We Invest Inb4)!"+6$'"A"-,22,4'"E$.6,'7+4'"%,+,P!'.")!%!,3!"b!*,%$,*"$'*"4+6!)"6!$2+6"%$)!".!)3,%!.<"$+"$"+4+$2"%4.+"4# "'!$)25"MA?/@":,22,4'"(!)":,!'',&-<"4# "16,%6"MV/O":,22,4'",."]!'!)$2"0&'*JU+$+!/"86,."#&'*,'7"*!2,3!).<"$-4'7"$"'&-:!)"4# ",+!-._"» >'J64-!".&((4)+."+4"N@<@@@",'*,3,*&$2."164"$)!"!2*!)25"4)"6$3!"*!3!24(-!'+$2"*,.$:,2,+,!./"'!"D%$'H)**)+,'-145B'"» b!'+$2"6!$2+6".!)3,%!."#4)"A?N<@@@",'*,3,*&$2.",'"4&)"%4--&',+,!."$'*"A<?@@",'*,3,*&$2.",'".+$+!"-!'+$2",'.+,+&+,4'./""!"E$F%$'()**)+,'-145B""» 8!-(4)$)5"%$.6"$..,.+$'%!"#4)":$.,%"2,3,'7"!D(!'.!."#4)"X\<@@@"#$-,2,!./""!"CM$%$'()**)+,'-145B'"» 04.+!)"64-!."#4)"\<N@@"%6,2*)!'"!$%6"-4'+6"164"%$'"'4"24'7!)"2,3!".$#!25",'"+6!,)"64-!./""!"DG$%G'()**)+,'-145B'"» U!)3,%!."+4"()4+!%+"\N<@@@"%6,2*)!'"$'*"AN<@@@"!2*!)25"$*&2+."164"$)!"3,%+,-."4# "$:&.!"$'*"'!72!%+/""!"D$C%8'()**)+,'-145B""» Y4--&',+5")!.,*!'+,$2"(2$%!-!'+."#4)"$'"$**,+,4'$2"NO",'*,3,*&$2."1,+6"*!3!24(-!'+$2"*,.$:,2,+,!."164"1,22"'!!*")!.,*!'+,$2"%$)!"$."+6!5"-43!"#)4-"#4.+!)"%$)!<"T&3!',2!")!6$:,2,+$+,4'"#$%,2,+,!.<"-!'+$2"6!$2+6",'.+,+&+,4'."$'*"R!($)+-!'+"4# "Y4))!%+,4'.F"#$%,2,+,!./"'!"G%G'()**)+,'-145B"» H**,+,4'$2".+$## "+4",-()43!"+6!"=.%$2",'+!7),+5"4# "+6!"b!*,%$,*"()47)$-"164"$)!"!D(!%+!*"+4"241!)"6!$2+6"%$)!"%4.+./"""!"FE%8'()**)+,'-145B'"» Y$($%,+5",'"!-(245-!'+"()47)$-."#4)"%2,!'+."1,+6"*!3!24(-!'+$2"*,.$:,2,+,!.<"16,%6",.",'%)!$.!*":5"AXN/"86!.!".!)3,%!."6!2("b!*,%$,*J1$,3!)"%2,!'+."$#+!)"+6!5"7)$*&$+!"#)4-"6,76".%6442"+4")!-$,'"$%+,3!",'"+6!,)"%4--&',+,!./"'!"8FG7$$$'-145B

ProposedSpending

$10.5 billion

ProposedReduction

$1.4 billion

A\

HEALTH, HUMAN SERVICES AND PUBLIC SAFETYI&:2,%"6!$2+6"#&'*,'7"()4+!%+.",'*,3,*&$2."$'*"%4--&',+,!."+6)4&76"()!3!'+,4'"$'*"%4'+)42"4# "%4--&',%$:2!"*,.!$.!."$'*")!.(4'.!"+4"4&+:)!$9.".&%6"$.".1,'!"G&/""!"&$%G'()**)+,'-145B'How We Achieve SavingsZ2,-,'$+!"+6!"K$.,%"l!$2+6"I2$'/"86!".+$+!"1,22"'4"24'7!)"4##!)".&:.,*,P!*"6!$2+6",'.&)$'%!"+4"XX<@@@",'*,3,*&$2."+6)4&76"+6!"K$.,%"l!$2+6"()47)$-/"U+$## "(4.,+,4'."$..4%,$+!*"1,+6"+6!"()47)$-"1,22"$2.4":!"!2,-,'$+!*/"H"'4'J.&:.,*,P!*"K$.,%"l!$2+6"I)47)$-"1,22"%4'+,'&!"+4":!"4##!)!*/""!"#F$%#'()**)+,'-145N'"DDM%F'()**)+,'-.,./0*'12,341.3./0*B

Z2,-,'$+!"+6!"R,.$:,2,+5"c,#!2,'!"7)$'+"#4)"+6!"+!-(4)$),25"&'!-(245$:2!/"86!"7)$'+"1,22"%4'+,'&!"$+"$")!*&%!*"2!3!2"4# "M?NO"(!)"-4'+6"#4)",'*,3,*&$2."1,+6"(!'*,'7"$((2,%$+,4'."#4)"0!*!)$2"U&((2!-!'+$2"U!%&),+5">'%4-!"$'*",'*,3,*&$2."4'"+6!"$7!*<":2,'*"4)"*,.$:2!*"()47)$-/"86,."()47)$-".!)3!."?O<@@@",'*,3,*&$2."!$%6"-4'+6/""!"D8$%D'()**)+,'-145B

Z2,-,'$+!"+6!"R,.$:,2,+5"c,#!2,'!"b!*,%$2"I)47)$-<"16,%6".!)3!."?A<@@@"%2,!'+."!$%6"5!$)"164"6$3!"$"+!-(4)$)5"*,.$:,2,+5"$'*"$)!"&'$:2!"+4"14)9/""!"DCM%#'()**)+,'-145f

Z2,-,'$+!"+6!"Y6,2*)!'F."l!$2+6"I)47)$-<"16,%6"()43,*!."-!*,%$2"%43!)$7!"#4)"?\<@@@"%6,2*)!'"164.!"%,+,P!'.6,("6$."'4+":!!'"*4%&-!'+!*/""!"GE%$'()**)+,'-145B"

Z2,-,'$+!"+6!"U+$+!"044*"H..,.+$'%!"I)47)$-<":&+"()43,*!"#&'*,'7",'"+6!"R!($)+-!'+"4# "H7),%&2+&)!":&*7!+"+4"(&)%6$.!"%4--4*,+,!."#4)"#44*":$'9./""!"CG%&'()**)+,'-145'Q,.6RB"

Z2,-,'$+!"+6!"%6,2*".&((4)+"`($.."+6)4&76<a"16,%6"$2241."&("+4"M?@@"4# "%6,2*".&((4)+"+4"74"*,)!%+25"+4"#$-,2,!.",'"+6!"8!-(4)$)5"H..,.+$'%!"#4)"W!!*5"0$-,2,!."()47)$-/""!"D8%8'()**)+,'-145B

Z2,-,'$+!"+6!"b!*,%$)!"I$)+"R"%4J($5-!'+".&:.,*5/"86!".+$+!"1,22"'4"24'7!)")!,-:&).!"^&$2,#5,'7"b!*,%$,*"%2,!'+."#4)"%4J($5-!'+.")!2$+!*"+4"b!*,%$)!"I$)+"R"*)&7"(&)%6$.!./""!"D&%C'()**)+,'-145B

Z2,-,'$+!".%6442J:$.!*"-!*,%$2".!)3,%!")!,-:&).!-!'+./"E$.6,'7+4'".%6442"*,.+),%+."1,22"'4"24'7!)":!")!,-:&).!*"#4)"-!*,%$2".!)3,%!."+4"b!*,%$,*J!2,7,:2!"%6,2*)!'")!^&,)!*"$."($)+"4# "+6!,)",'*,3,*&$2"!*&%$+,4'$2"(2$'/""!"DD%$'()**)+,'-145B

Z2,-,'$+!"-!*,%$2",'+!)()!+!)".!)3,%!.<"16,%6".&:.,*,P!"+6!"%4.+"4# ",'+!)()!+!)".!)3,%!."+4"$..,.+"-!*,%$2"()43,*!).",'"%4--&',%$+,'7"1,+6"b!*,%$,*"%2,!'+./""!"DD%$'()**)+,'-'145B

Z2,-,'$+!".+$+!"#&'*,'7"#4)"!-(245-!'+".!)3,%!."+4"$:4&+"ON@")!#&7!!./"Z-(245-!'+"(2$%!-!'+"$..,.+$'%!<"Z'72,.6J$.J$JU!%4'*"c$'7&$7!"+)$,','7"$'*"4+6!)".!)3,%!."1,22":!"()43,*!*"4'25"+4"+6!"!D+!'+"#!*!)$2"#&'*."$)!"$3$,2$:2!/""!"D$%$'()**)+,'-145B

Z2,-,'$+!".+$+!"#&'*,'7"#4)"#$-,25"(2$'','7"7)$'+./"86!"R!($)+-!'+"4# "l!$2+6"1,22"*,)!%+"#!*!)$2"7)$'+."+4")&)$2"$)!$."+4"-$,'+$,'"7!47)$(6,%$225"$%%!..,:2!<"%4.+J!##!%+,3!"#$-,25"(2$'','7".!)3,%!./""!"E%$'()**)+,'-145B'

Z2,-,'$+!".+$+!"#&'*,'7"#4)"'$+&)$2,P$+,4'".!)3,%!."+6$+"()!($)!"241J,'%4-!")!#&7!!."$'*"2!7$2",--,7)$'+."#4)"Q/U/"%,+,P!'.6,("+!.+,'7/"H:4&+"V<?@@"%2,!'+."$)!".!)3!*"(!)"5!$)"1,+6"+6,."()47)$-/"'!"G%&'()**)+,'-145B

d!*&%!",'J64-!"b!*,%$,*"(!).4'$2"%$)!"64&)."+4"VN<@@@",'*,3,*&$2./"H'"$3!)$7!J64&)")!*&%+,4'"4# "A@"(!)%!'+"1,22":!":$.!*"4'"+6!"$%&,+5"4# "+6!(%2,!'+/"Y2,!'+."1,22".!!"+6!,)"64&).")!*&%!*":5"V"+4"??"64&)."!$%6"-4'+6"#4)"$..,.+$'%!"1,+6":$+6,'7<"-!*,%$+,4'"-$'$7!-!'+<"*)!..,'7"$'*"4+6!)"$%+,3,+,!./"!"EM%G'()**)+,'-145B

AO

HEALTH, HUMAN SERVICES AND PUBLIC SAFETYd!*&%!"4(+,4'$2"b!*,%$,*".!)3,%!./"U!)3,%!."#4)"'4'J!-!)7!'%5"*!'+$2"$'*"-$+!)',+5"%$)!"+4"6,76J),.9"-4+6!)."$'*"%6,2*)!'"1,22":!")!*&%!*":&+"'4+"!2,-,'$+!*/""!"C8%#'()**)+,'-145B"

d!*&%!"#&'*,'7"#4)"?X<@@@"%2,!'+."4# "%4--&',+5"-!'+$2"6!$2+6".!)3,%!."*!2,3!)!*"+6)4&76"+6!")!7,4'$2".&((4)+"'!+14)9./"U!)3,%!.",'%2&*!"%),.,.")!.(4'.!<"!3$2&$+,4'"$'*"+)!$+-!'+/""!"DM%C'()**)+,'-145B"

d!*&%!")!.,*!'+,$2"$'*"4&+($+,!'+"%6!-,%$2"*!(!'*!'%5".!)3,%!."#4)"?<O@@"%2,!'+./""!"DC%D'()**)+,'-145B''

d!*&%!"7)$'+.":5"N@"(!)%!'+"+4"%4--&',+5"6!$2+6"%2,',%."$1$)*!*"+6)4&76"+6!"l!$2+6"Y$)!"H&+64),+5"#4)".!)3,%!."+4"241J,'%4-!"%2,!'+./""!"D#%8'()**)+,'-145B

d!*&%!"$*-,',.+)$+,3!".+$## "$'*"$..4%,$+!*"%4.+."$+"+6!"R!($)+-!'+"4# "U4%,$2"$'*"l!$2+6"U!)3,%!."+6)4&76".!3!)$2"$%+,4'.<",'%2&*,'7"%4'.42,*$+,4'"4# ".,D".!)3,%!")!7,4'.",'+4"+6)!!/"86!"*!($)+-!'+",."*!3!24(,'7"$"(2$'"+4")!*&%!"$7!'%5".($'"4# "%4'+)42/""!"8%$'()**)+,'-145B

d!*&%!"24%$2"(&:2,%"6!$2+6"#&'*,'7":5"AA"(!)%!'+/"U!)3,%!."$##!%+!*",'%2&*!")!.(4'*,'7"+4"#44*J:4)'!",22'!..!."$'*"!(,*!-,%.<"$'*"64-!"3,.,+$+,4'.":5"(&:2,%"6!$2+6"'&).!./""!"M%G'()**)+,'-145B'

U&.(!'*"-$'*$+4)5"+)$,','7"#4)"64-!J%$)!"14)9!)./"86,."1,22"*!2$5",-(2!-!'+$+,4'"4# "$**,+,4'$2"+)$,','7")!^&,)!-!'+."#4)"24'7J+!)-"%$)!"14)9!)."&'+,2"?@ACBAN/"W4"%2,!'+."1,22"24.!".!)3,%!."$."$")!.&2+"4# "+6!"*!2$5/""!"#E%D'()**)+,'-145B

b4*,#5"641"1!"($5"#!*!)$225"^&$2,=!*"6!$2+6"%!'+!)./"86!".+$+!"1,22")!*&%!"+6!"$-4&'+"($,*"+4"16$+",."-,',-$225")!^&,)!*":5"+6!"Y!'+!)"#4)"b!*,%$,*"U!)3,%!./""!"8G%D'()**)+,'-145B'

Y$(+&)!"$*-,',.+)$+,3!"$'*"4(!)$+,4'$2".$3,'7."+6)4&76"!#=%,!'%,!.",'".+$+!",'.+,+&+,4'.<",'%2&*,'7"+64.!"#4)",'*,3,*&$2."1,+6"*!3!24(-!'+$2"*,.$:,2,+,!."$'*"-!'+$2",22'!../""!"#$%$'()**)+,'-145B

d!%43!)"+6!"%4.+."4# "2,%!'.,'7"$'*"%!)+,=%$+,4'"#4)":4$)*,'7"64-!.<"'&).,'7"64-!.<"$*&2+"#$-,25"64-!.<"-!'+$2"6!$2+6"#$%,2,+,!."$'*"%6!-,%$2"*!(!'*!'%5"#$%,2,+,!./""!"DG%C'()**)+,'-145B

PUBLIC SAFETY

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

What We Invest In

Y4'=','7"AL<?@@"4##!'*!).",'"A?".+$+!",'.+,+&+,4'."$'*".&(!)3,.,'7"AO<O@@"4##!'*!).",'"+6!"%4--&',+5/""!"D%M'H)**)+,'-.,./0*'12,345606.B

Y4'=','7"XVN"T&3!',2!"4##!'*!).",'".+$+!",'.+,+&+,4'."$'*"7)4&("64-!./""!"D8#%$'()**)+,'-145B''

ProposedSpending

$2.0 billion

ProposedReduction

$143.2 million

AL

HEALTH, HUMAN SERVICES AND PUBLIC SAFETYU&(!)3,.,'7"?LC".!D&$225"3,42!'+"()!*$+4)."%,3,225"%4--,++!*"$+"+6!"U(!%,$2"Y4--,+-!'+"Y!'+!)"4'"b%W!,2">.2$'*/""!"DFF%$'()**)+,''-145B

h!!(,'7"6,761$5.".$#!"$'*"()4%!..,'7"RWH"$'*"%),-!".%!'!"!3,*!'%!"$+"+6!".+$+!"%),-!"2$:4)$+4),!."1,+6"#&'*,'7"+4"+6!"E$.6,'7+4'"U+$+!"I$+)42/""!"ME%$'()**)+,'-145N'"GF%$'()**)+,'0**"S2,3?B

S(!)$+,'7"+6!"2$1"!'#4)%!-!'+"+)$,','7"()47)$-"+6)4&76"+6!"Y),-,'$2"m&.+,%!"8)$,','7"Y4--,..,4'"#4)"AO@"2$1"!'#4)%!-!'+"4#=%!)./""!"CE%E'()**)+,'-145B

0&'*,'7"+4"+6!"R!($)+-!'+"4# "U4%,$2"$'*"l!$2+6"U!)3,%!."$'*"+6!"S#=%!"4# "+6!"H++4)'!5"]!'!)$2"#4)"2!7$2"!D(!'.!./(86!"E$.6,'7+4'"U+$+!"U&()!-!"Y4&)+")!%!'+25")&2!*",'"+6!"%$.!"T,'/.'U.6.,6)+,'+S 'U0O)3'L%'VAW2)?6+,"+6$+".!D&$225"3,42!'+"()!*$+4)."6$3!"$".&:.+$'+,3!"*&!"()4%!.."),76+"+4"$"'!1"+),$2",# "+6!)!",."$'5"%6$'7!",'"+6!"%4'*,+,4'"+6$+"-$5"!'$:2!"$")!.,*!'+"+4":!")!2!$.!*"#)4-"+6!"U(!%,$2"Y4--,+-!'+"Y!'+!)"()47)$-/""!"CG%$'()**)+,'-145B

How We Achieve SavingsY24.!"b%W!,2">.2$'*"Y4))!%+,4'."Y!'+!)":5"H(),2"?@AA"$'*"+)$'.#!)",.2$'*"4(!)$+,4'")!.(4'.,:,2,+,!."+4"+6!"R!($)+-!'+"4# "U4%,$2"$'*"l!$2+6"U!)3,%!."B"U(!%,$2"Y4--,+-!'+"Y!'+!)/"W4"4##!'*!)."1,22":!".!+"#)!!"(),4)"+4"+6!"!$)'!*")!2!$.!"*$+!"16,2!"+6!"(),.4'",."%24.!*/""!"DM%&'()**)+,'-145B

Y24.!"b$(2!"c$'!"U%6442",'"d4%6!.+!)":5"m&'!"C@<"?@AA<"$."T&3!',2!"4##!'*!)"%$.!24$*."$)!"*)4((,'7/""'!"F%F'()**)+,'-145B

Z2,-,'$+!"i+422,'7F"#4)"4##!'*!)."4'"%4--&',+5".&(!)3,.,4'/"86!"2!'7+6"4# "$'"4##!'*!)F."%4--&',+5".&(!)3,.,4'"1,22")&'"%4'+,'&4&.25")!7$)*2!.."4# "16!+6!)"$'"4##!'*!)",."

,'%$)%!)$+!*"$+"$'5"+,-!"*&),'7"+6!"%4--&',+5".&(!)3,.,4'".!'+!'%!/""!"&%$'()**)+,'-145B

Z2,-,'$+!"+6!"H&+4"86!#+"8$.9"04)%!",'"+6!"E$.6,'7+4'"U+$+!"I$+)42/"""!"F%&'()**)+,7'5606.'<06/+*'X)K=>0;'@AA+2,6B

d!*&%!".+$## "$'*"()47)$-.",'"+6!"R!($)+-!'+"4# "Y4))!%+,4'.",'"6!$*^&$)+!)."$'*"(),.4'.<"$'*",'"%4--&',+5".&(!)3,.,4'/"'!"GD%&'()**)+,'-145B

d!*&%!"($)42!".!)3,%!."()43,*!*"+4"T&3!',2!"4##!'*!).":5"+6!"m&3!',2!"d!6$:,2,+$+,4'"H*-,',.+)$+,4'",'"+6!"R!($)+-!'+"4# "U4%,$2"$'*"l!$2+6"U!)3,%!.":5"?@"(!)%!'+/""!"G%$'()**)+,'-145B

d!*&%!"#&'*,'7"+4"T&3!',2!"%4&)+."+6$+"()43,*!"!3,*!'%!J:$.!*"()47)$--,'7"$'*"*,.(4.,+,4'"$2+!)'$+,3!."+4"T&3!',2!"4##!'*!)./""!"#%F'()**)+,'-145B

d!*&%!"+6!"'&-:!)"4# "E$.6,'7+4'"U+$+!"I$+)42"!-(245!!."164"()43,*!"!2!%+)4',%"$%%!.."+4"%),-,'$2")!%4)*./"'!"D%$'()**)+,7'-145B

b!)7!"+6!"U!'+!'%,'7"]&,*!2,'!."Y4--,..,4'"1,+6"+6!"R!($)+-!'+"4# "Y4))!%+,4'."16,2!"!2,-,'$+,'7"+6!"(42,%5"#&'%+,4'."4# "+6!"%4--,..,4'"$'*"+6!"U!D"S##!'*!)"I42,%5"K4$)*/""!"D%F'()**)+,'-145B

b!)7!"+6!">'*!+!)-,'$+!"U!'+!'%,'7"d!3,!1"K4$)*"1,+6"+6!"R!($)+-!'+"4# "Y4))!%+,4'."1,+64&+"%6$'7,'7"+6!",'*!(!'*!'+"*!%,.,4'J-$9,'7"$&+64),+5"4# "+6!":4$)*/""!"&F$7$$$'-145B

R!(4)+"$22"'4'J%,+,P!'"*)&7"$'*"()4(!)+5"4##!'*!)."'41",'%$)%!)$+!*/"W!125".!'+!'%!*"'4'J%,+,P!'"4##!'*!)."$)!"'41"()4%!..!*"#4)"*!(4)+$+,4'"&(4'"$)),3$2"$+"+6!".+$+!"(),.4'".5.+!-/""!"#%G'()**)+,'-145N'"F%D'()**)+,'-141B

?@

NATURAL RESOURCES

]43!)'4)"])!74,)!"6$.".!+"+6!".+$+!"4'"$"($+6"+4"!'.&)!"$"6!$2+6,!)"'$+&)$2"!'3,)4'-!'+"+6)4&76"7)!$+!)"1$+!)"^&$2,+5"()4+!%+,4'<"6$:,+$+")!.+4)$+,4'"$'*"%2,-$+!"%6$'7!"-,+,7$+,4'/"d!%47',P,'7":&*7!+")!$2,+,!."!3,*!'+"2$.+"5!$)<"+6!"]43!)'4)"#4%&.!*"6!)"!##4)+."4'"*,)!%+,'7"'$+&)$2")!.4&)%!"$7!'%,!."+4"14)9"+47!+6!)"+4":!"-4)!"!#=%,!'+<")!*&%!"%4.+."$'*"*!2,3!)":!++!)"%&.+4-!)".!)3,%!<"$22"1,+64&+".$%),=%,'7"!'3,)4'-!'+$2"()4+!%+,4'/"86,.",'%2&*!*".,-(2,#5,'7"+6!"!'3,)4'-!'+$2"$((!$2."()4%!..":5")!*&%,'7"=3!"!'3,)4'-!'+$2"6!$),'7.":4$)*."+4"+14<"$'*"+6)!!"7)41+6"-$'$7!-!'+"6!$),'7.":4$)*."+4"4'!n"$'*"%)!$+,'7"+6!"4'2,'!".!)3,%!"`S'!"0)4'+"R44)"+4"E$.6,'7+4'F."S&+*44).a"+4"7,3!"%,+,P!'."$'*":&.,'!..!."!$.,!)"$%%!.."+4"'$+&)$2")!.4&)%!".!)3,%!./"86!.!"$%+,4'."2$,*"+6!"7)4&'*14)9"#4)"-4)!")!#4)-.",'"?@AA/

>'"%4'.,*!),'7"+6!".%4(!"4# ".+$+!"743!)'-!'+"4(!)$+,4'.<"+6!"8)$'.#4)-,'7"E$.6,'7+4'F."K&*7!+"Y4--,++!!"%4'%2&*!*"+6$+"$**,+,4'$2"'$+&)$2")!.4&)%!"$7!'%5"%4'.42,*$+,4'",."'!!*!*/"86!":&*7!+")!G!%+."!D!%&+,3!")!^&!.+"2!7,.2$+,4'"+4"%4'.42,*$+!"AA"$7!'%,!.",'+4"=3!"$."+6!"]43!)'4)"$,-."+4"%2$),#5"#&'%+,4'."$'*"!'.&)!"$%%4&'+$:,2,+5/""What We Invest InS(!)$+,'7"#&'*."#4)"+6!"%2!$'&("$'*"-4',+4),'7"4# "I&7!+"U4&'*",'".&%6"$)!$."$.".+4)-"1$+!)"-$'$7!-!'+n"$'*".64)!2,'!<"1$+!).6!*"$'*"#4)!.+"()$%+,%!"(2$'",-(2!-!'+$+,4'/">'"$**,+,4'<"+6!":&*7!+"2!3!)$7!."'!1"#!*!)$2"#&'*,'7"+4"

)!-43!"=.6":$)),!).<"()!3!'+"(422&+,4'"$+"+6!".4&)%!"$'*"!D!%&+!"+6!"I&7!+"U4&'*"H%+,4'"H7!'*$/">'"+6!"%$(,+$2":&*7!+<"1!",'3!.+",'")!.+4)$+,4'"!##4)+."+6)4&764&+"+6!":$.,'/""!"#EM%$'()**)+,'6+60*7'(2*6):*.'S2,3'?+2/A.?Y'"DEG%$'()**)+,'+:./06),KN'"D$#%$'()**)+,'O0/)+2?'A0:)60*'0AA+2,6?B

Y4'+,'&!*".&((4)+"#4)"24%$2".64)!2,'!"-$.+!)"(2$'','7"&(*$+!./""!"F%&'()**)+,'5606.'0,3'J+A0*'L+Z)A?'W+,6/+*'@AA+2,6?B

d!.+4)$+,4'"4# "$%+,3,+,!."+4",'%)!$.!"+6!"()4*&%+,3,+5"4# ".+$+!"+)&.+"2$'*.<"16,%6<",'"+&)'<":44.+."+,-:!)")!3!'&!"+4"+6!"%4--4'".%6442."$'*"(&:2,%"&',3!).,+,!./""!"F%#'()**)+,'[.?+2/A.'V0,0K.(.,6'W+?6'@AA+2,6N'"D%8'()**)+,'5606.'1+/.?6'\2/?./;'[.O+*O),K'@AA+2,6B

0&22",-(2!-!'+$+,4'"4# "+6!".+$+!F."'!1"-!)%&)5J%4'+$,','7"2,76+.")!%5%2,'7"()47)$-/""!"#%#'()**)+,'</+32A6'56.>0/3?=):'</+K/0(?'@AA+2,6N'"D87$$$'5606.'L+Z)A?'W+,6/+*'@AA+2,6B

>'%)!$.!*"-$,'+!'$'%!"14)9"4'"#4)!.+")4$*."+4"-!!+"+6!".+$+!F."4:2,7$+,4'"&'*!)"+6!"04)!.+"$'*"0,.6"l$:,+$+"Y4'.!)3$+,4'"I2$'/"'!"D%&'()**)+,'@AA.??'[+03'[.O+*O),K'@AA+2,6B

>'%)!$.!*"%$($%,+5"+4"-!!+"#!*!)$2"$,)"^&$2,+5".+$'*$)*./""!"##C7$$$'-.,./0*'12,341.3./0*N'"D%F'()**)+,'5606.'L+Z)A?'W+,6/+*'@AA+2,6B

How We Achieve Savings>',+,$+!"!##4)+.":5"+6!"U+$+!"I$)9."$'*"d!%)!$+,4'"Y4--,..,4'"+4"-$9!"+6!".+$+!"($)9".5.+!-"-4)!".!2#J.&.+$,','7/""!"CM%$'()**)+,'-.,./0*'12,345606.B

P=$#%&(5#%1,"&5#F&"6(<&&%(<#"M

"» E$+!)"),76+."$((2,%$+,4'./""!?=)S6'"G%&'()**)+,'S/+('-145'6+']06./'[)K=6?'</+A.??),K'@AA+2,6B'

ProposedSpending

$331.7 million

ProposedReduction

$122.5 million

?A

NATURAL RESOURCES"» Y4--!)%,$2"=.6,'7"2,%!'.!./""!?=)S6'"D%D'()**)+,'S/+('-145'6+'5606.'])*3*)S.'@AA+2,6B'"» l5*)$&2,%"()4T!%+"$(()43$2./"86!"R!($)+-!'+"4# "0,.6"$'*"E,2*2,#!"1,22"()4(4.!"2!7,.2$+,4'"+4"%)!$+!"#!!."+4"4##.!+"]!'!)$2"0&'*JU+$+!"#&'*,'7"$'*".+)!$-2,'!"+6!"$((2,%$+,4'"()4%!../"!?=)S6'"F%8'()**)+,'S/+('-145'6+'X;3/02*)A'</+^.A6'@::/+O0*'@AA+2,6B'"» U,23,%&2+&)!":&)','7"(!)-,+./"86!"R!($)+-!'+"4# "W$+&)$2"d!.4&)%!.",."*,)!%+!*"+4"%6$)7!"#!!."+6$+"7!'!)$+!")!3!'&!"+4"%43!)"()47)$-"%4.+./""!?=)S6'"MG$7$$$'-145'6+'@)/'<+**26)+,'W+,6/+*'@AA+2,6B

d!*&%!".(!'*,'7"$+"+6!"R!($)+-!'+"4# "Z%42475"#4)"$%+,3,+,!."+6$+"%$'":!"*!2$5!*"4)"(!)#4)-!*"2!.."#)!^&!'+25<",'%2&*,'7"1$+!)"),76+."()4%!..,'7<"2,++!)"(,%9&(<"$'*"G44*"%4'+)42"$'*"1$+!).6!*"(2$'','7"7)$'+./""!"G%F'()**)+,'-145N'"C%$'()**)+,'J)66./'@AA+2,6N'"#%$'()**)+,'1*++3'W+,6/+*'@??)?60,A.'@AA+2,6B

d!*&%!".+$#='7<"64&)."4# "4(!)$+,4'"$'*"4+6!)"$*-,',.+)$+,3!"%4.+."$+".-$22"$7!'%,!./""!"#%F'()**)+,'-145N'"GDE7$$$'+6=./'S2,3?B

d!*&%!"#&'*,'7"#4)"$7),%&2+&)$2"#$,).<"16,%6"1,22")!.&2+",'".-$22!)"$'*"#!1!)"%4&'+5"#$,)./""!"F%$'()**)+,'10)/'12,3B

d!*&%!"!D(!'.!."#4)"=)!"%4'+)42<".&%6"$."*,.%)!+,4'$)5"+)$,','7"#4)"=)!=76+!).<"$'*"#)!!P!"1$7!."#4)"!D!-(+"=)!=76+!)./"'!"D%&'()**)+,'-145B

d!*&%!"]!'!)$2"0&'*JU+$+!".&((4)+"4# "+6!"R!($)+-!'+"4# "W$+&)$2"d!.4&)%!.F"W$+&)$2"l!),+$7!"I)47)$-<"16,%6"1,22"2!$*"+4"#!1!)"&(*$+!."+4",'#4)-$+,4'"4'"'$+,3!"(2$'+"$'*"$',-$2".(!%,!."$'*"!%4.5.+!-./"'!"GFM7$$$'-145B

d!*&%!"7)$'+."+4"%4'.!)3$+,4'"*,.+),%+."$'*"!'%4&)$7!"!#=%,!'%,!.".&%6"$."-!)7,'7/""!"C$$7$$$'-145B

U6,#+"ML/N"-,22,4'"4# ":$.!"#&'*,'7"#4)"!'3,)4'-!'+$2"()47)$-."$+"+6!"R!($)+-!'+"4# "Z%42475"#)4-"]!'!)$2"0&'*JU+$+!"+4"*!*,%$+!*"$%%4&'+./""!S/+('-145'6+'5606.'0,3'J+A0*'L+Z)A?'W+,6/+*'@AA+2,6?B

U6,#+"#&'*,'7"+4"$%6,!3!"(!)-$'!'+<".+$:2!".&((4)+"#4)"4,2".(,22"()!3!'+,4'"$'*"()!($)!*'!../"'!"G%$'()**)+,'S/+('9)*'5:)**'</.O.,6)+,'@AA+2,6'6+'5606.'L+Z)A?'W+,6/+*'@AA+2,6B

Y)!$+!"+6!"`ZD(24)!"E$.6,'7+4'a"($.."+4"4##.!+"+6!"]!'!)$2"0&'*JU+$+!")!*&%+,4'.",'"+6!"R!($)+-!'+"4# "W$+&)$2"d!.4&)%!."$'*"R!($)+-!'+"4# "0,.6"$'*"E,2*2,#!/"'!?=)S6'"D%&'()**)+,'-145'6+'5606.'])*3*)S.'@AA+2,6B

??

TRANSPORTATION , CAPITAL AND ECONOMIC DEVELOPMENT

TRANSPORTATION

]43!)'4)"])!74,)!",."%4--,++!*"+4"()43,*,'7"$".$#!<"!#=%,!'+"+)$'.(4)+$+,4'".5.+!-"#4)"E$.6,'7+4'"+)$3!2!)."$'*"744*.<"()!.!)3,'7"$'*"-$,'+$,','7"%&))!'+",'#)$.+)&%+&)!<"$'*"9!!(,'7"E$.6,'7+4'"14)9!)."4'"+6!"T4:/"86!"]43!)'4)F.":&*7!+"6!2(."+4"$%6,!3!"+6!.!"74$2."16,2!"9!!(,'7"%$)!#&2"1$+%6"4# "%6$22!'7!."4'"+6!"64),P4'_"""» 86!")!%!'+"$*4(+,4'"4# "$"-4)!")!$2,.+,%"#&!2"#4)!%$.+,'7"-!+64*")!*&%!."+)$'.(4)+$+,4'")!3!'&!":5"MXV?"-,22,4'"43!)"+6!"'!D+"A@"5!$)./""» E$.6,'7+4'",."'!$),'7"%4-(2!+,4'"4# "+6!"MAN/N":,22,4'"()47)$-"#&'*!*":5"+6!"?@@C"W,%9!2"$'*"?@@N"8)$'.(4)+$+,4'"I$)+'!).6,("34+!)J$(()43!*"7$."+$D!./"H."%4'.+)&%+,4'".(!'*,'7"*!%2,'!."#)4-"M?/V":,22,4'"+4"MV??"-,22,4'"43!)"+6!"'!D+"#4&)"5!$).<"#!1!)"!'7,'!!),'7"$'*"4+6!)"+!%6',%$2".+$## "1,22":!"'!!*!*/"86!"R!($)+-!'+"4# "8)$'.(4)+$+,4'"1,22":!")!*&%!*":5"O@@"!'7,'!!),'7"$'*"+!%6',%$2"#&22J+,-!"!^&,3$2!'+".+$##<"4)"08Z.<":5"m&'!"C@<"?@AN/""

86!"*!($)+-!'+",."9!!(,'7"+6!"2$)7!.+"%4'.+)&%+,4'"()47)$-",'".+$+!"6,.+4)5"4'"+,-!"$'*"1,+6,'":&*7!+/"S# "V?A"()4T!%+."#&'*!*"+6)4&76"+6!"?@@C"$'*"?@@N")!3!'&!"($%9$7!.<"?O?"()4T!%+."3$2&!*"$+"MC/O":,22,4'"1!)!"%4-(2!+!*":5"U!(+!-:!)"?@A@/"0,#+5"()4T!%+."3$2&!*"$+"ML/O":,22,4'"$)!"'41"&'*!)"%4'.+)&%+,4'/"H'*"?C"()4T!%+."3$2&!*"$+"MC\O"-,22,4'"$)!"!D(!%+!*"+4"74"+4"$*3!)+,.!-!'+":5"b$)%6"?@AA/"86!")!-$,','7"XX"()4T!%+.".64&2*"74"+4"$*3!)+,.!-!'+",'"+6!"#&+&)!/"S3!)"+6!"'!D+"+14"5!$).<"+)$'.(4)+$+,4'"%4'.+)&%+,4'"()4T!%+."1,22"%)!$+!"4)".&.+$,'"$:4&+"??<?@@"T4:."$."($)+"4# "$"+4+$2"%4'.+)&%+,4'":&*7!+"4# "MN/V":,22,4'/"

Programs We ContinueQ3:%R:;(>:6(S4:'/51E!"-$,'+$,'"+6!"%4--,+-!'+"4# "M?/V":,22,4'",'"#&'*,'7/"Q("+4"MV@@"-,22,4'",'"+422."-$5":!"7!'!)$+!*",# "$&+64),P!*":5"+6!"c!7,.2$+&)!<"#4)"+4+$2"()4T!%+"#&'*,'7"4# "M?/O":,22,4'/"86!"%4'+)$%+"#4)"+6!"+&''!2<"16,%6",."4'".%6!*&2!"+4":!"4(!'"+4"+)$#=%",'"?@AN<"1,22":!".,7'!*",'"m$'&$)5"?@AA/"86,."()4T!%+"1,22"%)!$+!"4)".&.+$,'"V<V@@"T4:./""!L+60*'?2::+/6'+O./'6)(.Y'"#%8'H)**)+,'(2*6):*.'S2,3'?+2/A.?N'#$DD_DF'A+(()6(.,6Y'"88#'()**)+,B

C1:1&(T#/1&(U)*(VF&"0"&&;(A3#:14;0(."4'0&("&$3:5&=&;186!"*!($)+-!'+"6$."!'+!)!*",'+4"+14"%4'+)$%+."+4":&,2*"(4'+44'."$'*"()43,*!",-()43!-!'+."4'"+6!"Z$.+.,*!<"$'*",."(4,.!*"+4"!'+!)",'+4"$"+6,)*"%4'+)$%+"+4")!(2$%!"+6!"G4$+,'7":),*7!/"86!"'!1":),*7!",."4'".%6!*&2!"+4"4(!'",'"?@AV/"8422,'7"4'"+6!"%&))!'+"Ud"N?@"Z3!)7)!!'"024$+,'7"K),*7!"1,22":!7,'",'".(),'7"?@AA/"K&,2*,'7"+6!"'!1":),*7!"$'*"(4'+44'."1,22"%)!$+!"4)".&.+$,'"X<@@@"T4:./"'!L+60*':/+^.A6'A+?6',+6'6+'.ZA..3'"C%&'H)**)+,N'#$DD_DF'S2,3),KY'"D%#'H)**)+,'(2*6):*.'S2,3'?+2/A.?B

P;1&"%1:1&(U(9:5#=:(8408,#55/$:;56(F&8453&(3:;&%Y4'.+)&%+,4'"%4'+,'&!."4'"+6!"6,76J4%%&($'%5"+422"2$'!.":!+1!!'"I4)+2$'*"H3!'&!"+4"I4)+"4# "8$%4-$"d4$*"$'*"l,761$5"AX"$'*"+6!"W$22!5"[$22!5/"b4.+"4# "+6!"%4'.+)&%+,4'"1,22":!"%4-(2!+!*",'"?@A\/"86!"()4T!%+"1,22"%)!$+!"4)".&.+$,'"A<X@@"T4:./""!L+60*':/+^.A6'A+?6'+O./'6)(.Y'"D%G'H)**)+,'(2*6):*.'S2,3'?+2/A.?N'#$DD_DF'A+(()6(.,6Y'"F$G%$'()**)+,B

P;1&"%1:1&(W*U(5#""4'#"(4=$"#F&=&;1%Y4'7!.+,4'"1,22":!")!2,!3!*",'"+6!":&.,!.+"%4--&+!")4&+!",'"+6!".+$+!":5"1,*!','7">JV@N"#)4-"h,)92$'*"+4"K!22!3&!"$'*"#)4-">JN"+4"d!'+4'":5"?@AN/"86!"()4T!%+"1,22"%)!$+!"4)"

?C


.&.+$,'"A<V@@"T4:./""!L+60*':/+^.A6'A+?6Y'"D%G'H)**)+,'(2*6):*.'S2,3'?+2/A.?N'#$DD_DF'A+(()6(.,6Y'"#&C%$'()**)+,B

X#"18(C$#R:;&(@#""4'#"0&'*,'7"%4'+,'&!."+4"%)!$+!"$"&.$:2!".!7-!'+"4# "+6!"W4)+6"U(49$'!"Y4)),*4)"$'*",-()43!"%4'7!.+,4'":!+1!!'"+6!"E$'*!)-!)!"$'*"+6!"0)$'%,.k0)!5">'+!)%6$'7!"$'*"+4"(&)%6$.!"),76+J4#J1$5"()4(!)+5"+4"%4-(2!+!"+6!"W4)+6"U(49$'!"Y4)),*4)/"86!"()4T!%+"1,22"%)!$+!"4)".&.+$,'"X@@"T4:./""!L+60*':/+^.A6'A+?6Y'"&$G%$'()**)+,'(2*6):*.'S2,3'?+2/A.?N'#$DD_DF'A+(()6(.,6Y'"M#%$'()**)+,B

P;1&"%1:1&(J*(C;#Y/:3=4&(!:%%E4)9"4'">JL@"!$.+"4# "U'4^&$2-,!"I$..",'%2&*!."%4'.+)&%+,'7"$".'41".6!*"+4"2,-,+"%24.&)!."%$&.!*":5"$3$2$'%6!.<"1,*!','7">JL@"$'*")!(2$%,'7"%4'%)!+!"($3!-!'+"43!)*&!"#4)")!(2$%!-!'+/"86!"()4T!%+"1,22"%)!$+!"4)".&.+$,'"O@@"T4:./""!L+60*':/+^.A6'A+?6Y'"GGD%$'()**)+,'L/0,?:+/606)+,'<0/6,./?=):'@AA+2,6N'#$DD_DF'A+(()6(.,6Y'"DCM%G'()**)+,B

>:%84;01#;(C1:1&(A&""4&%86!"E$.6,'7+4'"U+$+!"0!)),!."1,22"+$9!"*!2,3!)5"4# "+6!"2$.+"4# "+6)!!"'!1"h1$J*,"8$:,2"%2$.."#!)),!.<"+6!"b["h!''!1,%9<",'"m$'&$)5"?@A?/""!L+60*':/+^.A6'A+?6Y'"#DF%$'()**)+,'(2*6):*.'S2,3'?+2/A.?N'#$DD_DF'S2,3),KY'"FC%D'()**)+,B

7408,%$&&'(":43E$.6,'7+4'"6$.".!%&)!*"M\O?"-,22,4'",'"6,76J.(!!*")$,2"7)$'+."#4)",-()43!-!'+.",'"+6!"W4)+61!.+"%4)),*4)/"86,.",'%2&*!."MNL@"-,22,4'"()!3,4&.25"$1$)*!*"+4"+6!".+$+!"+6)4&76"+6!"H-!),%$'"d!%43!)5"$'*"d!,'3!.+-!'+"H%+"#4)"+6!"H-+)$9"Y$.%$*!.")4&+!<"MAXA"-,22,4'",'")!J*,.+),:&+!*"#!*!)$2"6,76J.(!!*")$,2"#&'*."$'*"MCA"-,22,4'",'"$**,+,4'$2"$1$)*./""!#$DD_DF'S2,3),KY'"F&$%$'()**)+,'(2*6):*.'S2,3'?+2/A.?B

>:%84;01#;(C1:1&(!:1"#30&'*,'7",."()43,*!*"#4)"#!*!)$225")!^&,)!*")$*,4",'#)$.+)&%+&)!"$'*"!^&,(-!'+"+6$+"#$%,2,+$+!."

.+$+!"+)44(!)"%4--&',%$+,4'/""!#$DD_DF'S2,3),KY'"#G%#'()**)+,']0?=),K6+,'5606.'<06/+*'@AA+2,6B

0&'*,'7",."()43,*!*"#4)"-4:,2!"4#=%!"(2$+#4)-."+6$+"7,3!"+)44(!)."$%%!.."+4"!2!%+)4',%"3!6,%2!"$'*"*),3!)"*$+$:$.!."#)4-"+6!,)"3!6,%2!.<"$'*"#4)"$**,'7"*,7,+$2"3,*!4"%$-!)$."+4"+6!,)"3!6,%2!./"86!.!"+442."1,22",'%)!$.!"4#=%!)"$'*"(&:2,%".$#!+5/""!#$DD_DF'S2,3),KY'"M%F'()**)+,']0?=),K6+,'5606.'<06/+*'@AA+2,6B

Z&$:"1=&;1(#< ([45&;%4;00&'*,'7"#4)"$'"4'2,'!"#&!2"+$D".5.+!-"1,22"$2241"#4)"!$.,!)"+$D"=2,'7":5"%&.+4-!).<"16,%6"1,22")!*&%!"!))4).<",'%)!$.!"+$D")!%4'%,2,$+,4'"!#=%,!'%5"$'*"7!'!)$+!".$3,'7./""!#$DD_DF'S2,3),KY'"M%C'()**)+,'V+6+/' .̀=)A*.'@AA+2,6B

How We Achieve Savings8)$'.(4)+$+,4'"$7!'%,!."%&+"-4)!"+6$'"MV@"-,22,4'",'"+6!"()!3,4&."+14"5!$)."$'*"1,22"%24.!"$"M?\?"-,22,4'"*!=%,+"43!)"+6!"'!D+"+14"5!$)."+6)4&76"$%+,4'."+6$+",'%2&*!"+6!.!")!*&%+,4'."$'*".$3,'7._"» MC?"-,22,4'"$'*"VL"08Z."$%)4.."-&2+,(2!"()47)$-."» MO\"-,22,4'"$'*"?@@"08Z.",'"%$(,+$2";"4)"%4'.+)&%+,4'";"()4T!%+."» MVV"-,22,4'",'"?@@LBAA".$3,'7."#)4-"()4T!%+."+6$+"1!)!"*!2,3!)!*"&'*!)":&*7!+"4)")!$(()4(),$+!*""

E$.6,'7+4'"U+$+!"0!)),!."24.+"?@"(!)%!'+"4# ",+."4(!)$+,'7".&((4)+"$'*"\N"(!)%!'+"4# ",+."*!*,%$+!*"%$(,+$2"#&'*,'7"16!'"34+!)."$(()43!*">',+,$+,3!"XLN",'"ALLL/"U,'%!"+6!'<"+6!"*!=%,+"6$.":!!'".&:.,*,P!*"1,+6".64)+J+!)-"+)$'.#!)."#)4-"'4'J#!))5"+)$'.(4)+$+,4'".4&)%!./"86,."$(()4$%6",."'4+".&.+$,'$:2!/""

H".64)+#$22"4# "MOXN"-,22,4'",'"+6!"#!))5"%$(,+$2"()47)$-"$'*"MAO@"-,22,4'",'",+."4(!)$+,'7"()47)$-"43!)"+6!"'!D+"A@"5!$)."6$.":!!'"

?V


()4T!%+!*/"0&'*,'7"7$(."4# "+6,."-$7',+&*!"1,22":!"$**)!..!*"+6)4&76".&%6"$%+,4'."$._"» Q'=4;4%1":14F&(5/1%M("0!)),!."$*-,',.+)$+,3!"$'*"4(!)$+,4'.".&((4)+",.")!*&%!*":5"M?/O"-,22,4'"$'*"A@"08Z./"86,.",.",'"$**,+,4'"+4"M?\/\"-,22,4'",'"$*-,',.+)$+,3!"$'*"%$(,+$2"%4.+")!*&%+,4'."+$9!'",'"+6!"($.+"+14"5!$)./""» [:E#"(%:F4;0%M("86!"S#=%!"4# "0,'$'%,$2"b$'$7!-!'+")!%!'+25"*!+!)-,'!*"+6$+"2$:4)".!++2!-!'+."$'*"$):,+)$+,4'")&2,'7."#4)"?@AABAC"$)!"'4+"='$'%,$225"#!$.,:2!/""» 9":;%<&"%M""H"+)$'.#!)"4# "MVV"-,22,4'",'+4"+6!"0!))5"S(!)$+,'7"H%%4&'+",."-$*!":5")!*&%,'7"4+6!)"+)$'.(4)+$+,4'"()47)$-."$'*"()4T!%+./""» A:"&%M""H'",'%)!$.!"4# "\/N"(!)%!'+$7!"(4,'+."$:43!"+6!"(2$''!*"?/N"(!)%!'+",."$..&-!*<"#4)"$"A@"(!)%!'+",'%)!$.!",'"+6!"=).+"5!$)"4# "+6!":,!'',&-<".&:T!%+"+4"8)$'.(4)+$+,4'"Y4--,..,4'"$(()43$2/">'"$**,+,4'<"1!")!%4--!'*"+6$+"+6!"Y4--,..,4'"$*4(+"$"#&!2".&)%6$)7!"+4"()43,*!"$**,+,4'$2")!3!'&!.".64&2*"#&!2"%4.+."),.!"$:43!":&*7!+!*"2!3!2./""» C&"F45&(5/1%M("Z3!'"1,+6"+6!"$%+,4'."*!+$,2!*"$:43!<"#&'*,'7",.",'.&#=%,!'+"+4"-$,'+$,'".!)3,%!"2!3!2.",'"?@AABAC/">'"-$9,'7"+6!"#42241,'7")!*&%+,4'.<"(),4),+5"1$."(2$%!*"4'"'4+"%&++,'7"$'"!'+,)!")4&+!<"'4+"!2,-,'$+,'7".!)3,%!"+6$+"14&2*"2!$3!"%4--&+!)."1,+6"'4"*),3!J$)4&'*"4(+,4'"$'*".()!$*,'7")!*&%+,4'."+6)4&764&+"+6!".5.+!-".4"'4"4'!"$)!$",."*,.()4(4)+,4'$+!25"$##!%+!*_""o d!*&%,'7"V@"1!!9."4# ".!)3,%!":!+1!!'"H'$%4)+!.kU,*'!5"+4"??"1!!9./

"o d!*&%,'7".!)3,%!"64&)."4'"+6!"H'$%4)+!.kU$'"m&$'">.2$'*")4&+!"#4)"AO"1!!9.",'"+6!"#$22"$'*".(),'7<"$'*")!*&%,'7"%$($%,+5":5"?@"%$)".($%!."4'"4'!"3!..!2",'"+6!".&--!)"(!),4*/

"o d!*&%,'7"U$'"m&$'",'+!)J,.2$'*".!)3,%!"64&).",'"+6!"#$22"$'*".(),'7<"$'*")!*&%,'7"

%$($%,+5":5"?C"%$)".($%!."(!)".$,2,'7/"o d!*&%,'7"%$($%,+5"4# "4'!"4# "+6!"0$&'+2!)45k[$.64'kU4&+614)+6"3!..!2.":5"C\"%$)".($%!./"

"o W4+")!.+4),'7"+6!".!%4'*"3!..!2"4'"+6!"I4)+"841'.!'*kY4&(!3,22!")4&+!/"

"o Z2,-,'$+,'7"+6!"2$.+")4&'*J+),("',76+".!)3,%!"4'"+6!"Y2,'+4'kb&9,2+!4")4&+!/

"o Z2,-,'$+,'7"4'!"1!!9*$5<"-,*J*$5")4&'*"+),("4'"+6!"K)!-!)+4'kU!$++2!")4&+!<"!2,-,'$+,'7"',76+".!)3,%!"$#+!)"+6!"L_@N".$,2,'7"$'*")!*&%,'7"%$($%,+5":5"?@"%$)."4'"4'!"3!..!2/

"o Z2,-,'$+,'7"4'!"!$)25"$#+!)'44'"$'*"4'!"2$+!"!3!','7")4&'*"+),("4'"+6!"I4,'+"R!=$'%!k8$62!^&$6")4&+!/

>'"+4+$2<"+6!.!"$%+,4'."1,22")!*&%!"$3!)$7!"*$,25".$,2,'7."#)4-"N@N"+4"V\\",'"+6!"'!D+":,!'',&-/

CAPITAL CONSTRUCTION AND LOCAL ASSISTANCE

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

InvestmentsCOMMUNITY PROJECTS

7#/%4;0(Q%%4%1:;5&B(>&:18&"4\:14#;(:;'(Q<<#"':E3&(7#/%4;0(9"/%1(A/;'(G%1:1&]4'&LH**"#&'*."+4"+6,."()47)$-"+6$+"6!2(."%4--&',+,!."='$'%!"'!1"64&.,'7"$'*"()!.!)3!"

?N


64&.,'7".+4%9"#4)"241J,'%4-!",'*,3,*&$2./"I),4),+5",."7,3!'"+4"()4T!%+.")!$*5"#4)"%4'.+)&%+,4'"+6,.":,!'',&-/""!"C$%8'()**)+,'H+,3?B

Z&$:"1=&;1(#< (K&;&":3(Q'=4;4%1":14#;(E/43'4;0('&=#3414#;(G^36=$4:LR!-42,.6"+6!"]!'!)$2"H*-,',.+)$+,4'"4#=%!":&,2*,'7"$'*"($)9,'7"7$)$7!"$.",+"'4+"!%4'4-,%$225"#!$.,:2!"+4")!'43$+!"+6!-/"U+$## "-!-:!)."1,22"+$9!"4#=%!."3$%$+!*":5".+$+!"$7!'%,!."+6$+"-43!"+4"+6!"'!1"E6!!2!)"K&,2*,'7/"'!"&%F'()**)+,'H+,3?B

@#==/;416(V5#;#=45(T&F41:34\:14#;(.#:"'(G%1:1&]4'&L>'%)!$.!"24$'."+4")!.(4'*"+4":&.,'!..".,+,'7"$'*"!D($'.,4'"'!!*.<":&,2*",'*&.+),$2".,+!."#4)":&.,'!.."*!3!24(-!'+<"+$)7!+"!D($'.,4'.",'"9!5":&.,'!..".!%+4).<"$'*".(&)"%)!$+,4'"$'*")!+!'+,4'"4# "6,76!)J1$7!"T4:./""!"G%$'()**)+,'<2H*)A'10A)*)6;'W+,?6/2A6)+,'J+0,'[.O+*O),K'@AA+2,6B

74331#$(7&:318(@&;1&"(G9:5#=:LU+$)+"*!.,7'"#4)"$"-!*,%$2"$'*"*!'+$2"#$%,2,+5"#4)"AN<?@@"241J,'%4-!"$'*"&'*!).!)3!*"($+,!'+."+4"()!3!'+"&''!!*!*"3,.,+."+4"!-!)7!'%5")44-./""!"#%$'()**)+,'H+,3?B

C&5#;'(7:"F&%1(<##'(E:;R(GC$#R:;&Ld!'43$+!"$'*"&(7)$*!"$"#44*":$'9"1$)!64&.!"+4"!D($'*"%$($%,+5"+4"6$'*2!"2$)7!"*4'$+,4'."$'*",-()43!"!#=%,!'%5/"'!"D%F'()**)+,'H+,3?B

Q=&"45:;([:R&(F&1&":;?%(0#3< (5#/"%&(G[:R&]##'LH**"','!"642!."+4"+6,."742# "%4&).!"+6$+".!)3!."3!+!)$'."$'*"14&'*!*"-!-:!)."4# "+6!"-,2,+$)5/""!"D%$'()**)+,'H+,3?B

./43'4;0(@#==/;414&%(A/;'(0":;1%(G%1:1&]4'&LI)43,*!"'4'()4=+"4)7$',P$+,4'."1,+6"+!%6',%$2"$..,.+$'%!"$'*"#&'*,'7"#4)".4%,$2".!)3,%!"$'*"-&2+,(&)(4.!"%4--&',+5"%!'+!)./"86,.",."$"%4-(!+,+,3!"7)$'+"()47)$-/"'!"D%$'()**)+,'H+,3?B

CR:041(S:33&6(7#%$41:3(GN#/;1(S&";#;Ld!-4*!2".($%!"#4)"$"2$)7!)",'($+,!'+":!6$3,4)$2"6!$2+6"%!'+!)"+4"-4)!"$(()4(),$+!25".!)3!"($+,!'+./""!"8$$7$$$'H+,3?B

PUBLIC SAFETY >:%84;01#;(C1:1&(!&;41&;14:"6(G>:33:(>:33:LY4'.+)&%+"4'!"'!1"ALOJ:!*<"%24.!J%&.+4*5"64&.,'7"&',+<"4'!"'!1"?NXJ:!*<"-!*,&-J%&.+4*5"64&.,'7"&',+"$'*"$"9,+%6!'"!D($'.,4'"$+"+6!"E$.6,'7+4'"U+$+!"I!',+!'+,$)5/""!"CE%E'()**)+,'H+,3?B

>:%84;01#;(C1:1&(!:1"#3(G%1:1&]4'&LU&((25"!^&,(-!'+"+4"%4'3!)+")$*,4"%4--&',%$+,4'"#4)"!-!)7!'%5"(!).4''!2"#)4-"1,*!:$'*"$'$247"+4"'$))41:$'*<"16,%6"1,22"()43,*!"$"-4)!")!2,$:2!"%4--&',%$+,4'".5.+!-/""!"DG%$'()**)+,'H+,3?B'

X&]($"4%#;("&5&$14#;(5&;1&"(G]&%1%4'&(#< (%1:1&Lb43!"$6!$*"4'"+6,."()4T!%+"+6$+",'%2&*!."2$'*"$%^&,.,+,4'<"#$%,2,+5"*!.,7'"$'*"%4'.+)&%+,4'/"c$.+"5!$)<"+6!"c!7,.2$+&)!"()43,*!*"$&+64),P$+,4'"+4".,+!"$"'!1"1!.+.,*!"%4))!%+,4'$2"#$%,2,+5"$+"$"24%$+,4'"+4":!"*!+!)-,'!*/""!"DC%M'()**)+,'H+,3?B

>:%84;01#;(@#""&514#;%(@&;1&"(GC8&31#;LK!7,'"+6!"*!.,7'"(6$.!"#4)"+6!"%4'.+)&%+,4'"4# "$"C@@":!*"-!'F."-,',-&-J%&.+4*5"#$%,2,+5"$+"+6!"E$.6,'7+4'"Y4))!%+,4'."Y!'+!)"#$%,2,+5/""!"F%8'()**)+,'H+,3?B

EDUCATION

V:%1&";(>:%84;01#;(_;4F&"%416(`(!:11&"%#;(7:33("&=#'&3(Y4-(2!+!")!'43$+,4'"4# "+6!")!-$,','7"\\<C\V".^&$)!"#!!+"4# "+6!":&,2*,'7<"16,%6"=',.6!."+6!"()4T!%+/""!"F8%&'()**)+,'H+,3?B

VF&"&11(@#==/;416(@#33&0&(`(P;'&a(7:33("&$3:5&=&;1d!(2$%!"+6!">'*!D"l$22"%4-(2!D"1,+6"+6,."XL<CN@".^&$)!J#44+"#$%,2,+5<"16,%6"1,22"()43,*!"

?X


,'.+)&%+,4'$2".($%!"#4)"'&).,'7"$'*"$22,!*"6!$2+6"()47)$-."$'*"$%%4--4*$+!"$'"$**,+,4'$2"VA?".+&*!'+./""!"FM%&'()**)+,'H+,3?B

[#]&"(@#3/=E4:(@#33&0&(`(7&:318(:;'(C54&;5&(./43'4;0Y4'.+)&%+"$"\@<@@@".^&$)!"#44+":&,2*,'7"+4")!(2$%!"4&+*$+!*"#$%,2,+,!."+4"64&.!".%,!'%!"$'*"$22,!*"6!$2+6"()47)$-."$'*"2$:4)$+4)5/"""!"FG%D'()**)+,'H+,3?N'"#%&'()**)+,'W+((2,)6;PL.A=,)A0*'W+**.K.'W0:)60*'</+^.A6?'@AA+2,645606.B

>:%84;01#;(C1:1&(_;4F&"%416(`(Z&%40;(Z4%54$34;&%(A:543416("&;#F:14#;H*$(+,3!25")!J&.!":&,2*,'7"#4)"+14"$%$*!-,%"*!($)+-!'+."#)4-"#4)-!)"&.!"$."U+&*!'+."K449"Y4)(4)$+,4'/""!"D8%$'()**)+,'H+,3?B

98&(VF&"0"&&;(C1:1&(@#33&0&(`(@#==/;45:14#;%([:E#":1#"6(./43'4;0("&;#F:14#;(d!'43$+!"43!)"L@<@@@"7)4..".^&$)!"#!!+"4# "+6,."-$T4)"$%$*!-,%"#$%,2,+5"4'"+6!"%422!7!F."S25-(,$"%$-(&./""!"D$%8'()**)+,'H+,3?B

C58##3("&$:4"%(G%1:1&]4'&LZD($'*"+6!"U-$22"d!($,)"])$'+"I)47)$-<"16,%6"6!2(.".%6442."1,+6"&)7!'+"'!!*.<".&%6"$."$"2!$95")44# "4)"$'"4&+J4#J*$+!"=)!".&(()!..,4'".5.+!-<"+4"!'.&)!"+6!"6!$2+6"$'*".$#!+5"4# ".+&*!'+./"])$'+."4# "&("+4"MA@@<@@@"$)!"4##!)!*/"86,.")!^&!.+"%4'+,'&!."+6!"()47)$-"16,%6"6$.":!!'",'"(2$%!".,'%!"?@@?"$'*"+$)7!+."*,.+),%+."+6$+".+)&772!"+4"($.."24%$2"2!3,!./""!"D$%$'()**)+,'H+,3?B

_;4F&"%416(#< (>:%84;01#;(`(7#/%&(#< (D;#]3&'0&([#;08#/%&(Y4-(2!+!"*!.,7'"$'*":!7,'"%4'.+)&%+,4'"4# "+6!"l4&.!"4# "h'412!*7!<"$"Y4$.+"U$2,.6"24'764&.!J.+52!<"AO<O@@".^&$)!J#44+":&,2*,'7/"86,."()4T!%+",."$"($)+'!).6,("$-4'7"W$+,3!"H-!),%$'"+),:!.<"+6!".+$+!"4# "E$.6,'7+4'"$'*"+6!"Q',3!).,+5"4# "E$.6,'7+4'/""!"#%M'()**)+,'a,)O./?)6;'+S ']0?=),K6+,'b2)*3),K'@AA+2,6B

QF4:14#;(7408(C58##3(GC&:113&LY4'.+)&%+"$"(!)-$'!'+"#$%,2,+5"4'"()4(!)+5"$*T$%!'+"+4"+6!"b&.!&-"4# "02,76+F."$,)($)9"#4)"+6,."6,76".%6442"+6$+".!)3!."V?@".+&*!'+.",'+!)!.+!*",'"%$)!!).")!2$+!*"+4"+6!"G,76+",'*&.+)5"1,+6"$"%&)),%&2&-"+6$+".+)!..!."-$+6<".%,!'%!"$'*"!'7,'!!),'7/""!"#%$'()**)+,'H+,3?B

ENVIRONMENT

Z"4;R4;0(>:1&"(Q%%4%1:;5&(!"#0":=(G%1:1&]4'&Lb$9!"24$'."+4"24%$2"743!)'-!'+.<"$'*"(&:2,%"$'*"(),3$+!"1$+!)".5.+!-.<"#4)"()4T!%+."+4"()4+!%+"+6!".+$+!F."*),'9,'7"1$+!)"#$%,2,+,!."$'*")!.4&)%!./""!"C8%$'()**)+,'U/),c),K']06./'@??)?60,A.'@AA+2,6B

!/0&1(C#/;'("&%1#":14#;(:;'(%:3=#;("&5#F&"6(0":;1%(G!/0&1(C#/;'LH1$)*"7)$'+."+4"()4+!%+"$'*")!.+4)!"+6!"I&7!+"U4&'*"'!$)J.64)!<".$2-4'"6$:,+$+"$'*"4+6!)")!.4&)%!./"H22"()4T!%+."6$3!":!!'",*!'+,=!*"$."6,76J(),4),+5":5"+6!"I&7!+"U4&'*"I$)+'!).6,(F."H%+,4'"H7!'*$"$'*"U$2-4'"d!%43!)5"I2$'<"$)!")!$*5"#4)"%4'.+)&%+,4'"$'*"1,22"%)!$+!"T4:./""!"G$%$'()**)+,'H+,3?N'"D#%$'()**)+,'5606.'L+Z)A?'W+,6/+*'@AA+2,6B""

C1#"=(]:1&"(=4140:14#;(G%1:1&]4'&L0&'*"7)$'+."+4"24%$2"743!)'-!'+."+4"%4'.+)&%+"'!1"4)")!+)4=+",'$*!^&$+!".+4)-"1$+!)",'#)$.+)&%+&)!/""!"C$%$'()**)+,'J+A0*'L+Z)A?'W+,6/+*'@AA+2,6B''

K"&&;(T4F&"(b##'(3&F&&(4=$"#F&=&;1%(GD4;0(@#/;16LI)43,*!"#&'*."+4"+6!"h,'7"Y4&'+5"0244*"Y4'+)42"R,.+),%+"+4"%4'.+)&%+",-()43!-!'+."+4"+6!"d!**,'7+4'<"l$12!5"d4$*"$'*"+6!"K4!,'7"2!3!!.",'"+6!"c41!)"])!!'"d,3!)"[$22!5/"86!.!",-()43!-!'+."1,22"6!2("()4+!%+"+64&.$'*."4# "64-!."$'*":&.,'!..!.",'"+6!"3$22!5"#)4-"G44*,'7/""!"&%#'()**)+,'H+,3?B

?\


9/3:34$(]:1&"($4$&34;&(G9/3:34$(P;'4:;(T&%&"F:14#;LY4'.+)&%+".!7-!'+."C"$'*"V"eU'464-,.6"d,3!)"$'*"U-,+6">.2$'*f"4# "+6!"8&2$2,("1$+!)"(,(!2,'!<"16,%6"1,22".&((25"1$+!)"#)4-"+6!"%,+5"4# "Z3!)!++"+4"+6!")!.!)3$+,4'/"""!"F%$'()**)+,'H+,3?B

@8&8:34%(T4F&"(b##'(=4140:14#;($"#0":=(G98/"%1#;B([&]4%(:;'(K":6%(7:"E#"(5#/;14&%LY43!)"+6!"'4'#!*!)$2"%4.+."#4)"+6!"Q/U/"H)-5"Y4)(."4# "Z'7,'!!).F"G44*"6$P$)*"-,+,7$+,4'"()4T!%+."#4)"+6!"Y6!6$2,."d,3!)":$.,'/"0&'*,'7",."$2.4"()43,*!*"#4)"+6!"Y6!6$2,."d,3!)"K$.,'"0244*"H&+64),+5"+4"!.+$:2,.6"24%$2"G44*"*,.+),%+.<"%4-(2!+!"=.6".+&*,!."+4"!3$2&$+!"&(),3!)"1$+!)")!+!'+,4'<"$'*"%4-(2!+!"+6!"Y6!6$2,."d,3!)"65*)$&2,%"-4*!2",'"86&).+4'"$'*"])$5."l$):4)"%4&'+,!./""!"#%F'()**)+,'H+,3?B

ECONOMIC DEVELOPMENT

86!")!%!..,4'"6$.":!!'"!.(!%,$225"6$)*"4'"E$.6,'7+4'F."14)9!)."$'*"#$-,2,!./"]43!)'4)"])!74,)!"6$."%4--,++!*"+4"7!++,'7"E$.6,'7+4',$'.":$%9"+4"14)9"+6)4&76"!%4'4-,%"*!3!24(-!'+".+)$+!7,!."+6$+"%)!$+!"T4:./"84"+6$+"!'*<".6!".&((4)+."()47)$-."+6$+"()4+!%+"14)9!).<",'%)!$.!"T4:"4((4)+&',+,!."$'*".(&)",''43$+,4'/"g!+",'")!%47',+,4'"4# "+6!"'!!*"+4"(),4),+,P!")!.4&)%!."$%)4..".+$+!"743!)'-!'+<"6!)":&*7!+".6),'9."$"'&-:!)"4# "()47)$-."+6$+"6$3!"()4-4+!*"!-(245-!'+"4((4)+&',+,!.",'"+6!"($.+/"86!"]43!)'4)"()4(4.!."+4".&:.+$'+,$225"()!.!)3!"#&'*,'7"#4)"$"()47)$-"+6$+"*!2,3!)."6$'*.J4'".!)3,%!."+4":&.,'!..!."%4'.,*!),'7"24%$+,'7",'"E$.6,'7+4'<"$."*!.%),:!*":!241/

What We Invest In86!"K&.,'!.."U!)3,%!."R!3!24(-!'+"()47)$-",'"+6!"R!($)+-!'+"4# "Y4--!)%!")!%)&,+."(4+!'+,$2":&.,'!..!."+4"24%$+!",'"E$.6,'7+4'/">+"*!2,3!).".&((4)+"+4"$..4%,$+!"*!3!24(-!'+"4)7$',P$+,4'"'!+14)9."+6)4&76"-$)9!+,'7"+442.<"!%4'4-,%"*$+$<"$%%!.."+4"%$(,+$2"$'*"4((4)+&',+,!."#4)"%4-($',!."+4"*!3!24("$'*"()4-4+!"+6!,)"()4*&%+."$'*".!)3,%!./">'"$**,+,4'<",+"4##!)."!*&%$+,4'"+4"'$+,4'$2".,+!".!2!%+4)."4'"+6!":!'!=+."4# "*4,'7":&.,'!..",'"E$.6,'7+4'".+$+!/"b,'4)")!*&%+,4'."1!)!"-$*!",'"+6!"()47)$-F.":&*7!+",'"2,76+"4# ",+."9!5")42!",'"()4-4+,'7"!%4'4-,%"*!3!24(-!'+/"'!"DG%&'()**)+,'-.,./0*'12,345606.B

How We Achieve SavingsZ2,-,'$+!"$22"]!'!)$2"0&'*JU+$+!"#&'*,'7":5"+6!"!'*"4# "=.%$2"5!$)"?@AA"#4)"+6!"E$.6,'7+4'"U+$+!"84&),.-"S#=%!",'"+6!"R!($)+-!'+"4# "Y4--!)%!/"86!"*!($)+-!'+",."!'7$7!*"1,+6".+$9!642*!)."+4"#4)-"$"'!1<"-4)!".+$:2!"+4&),.-"*!3!24(-!'+"$'*"='$'%!"-4*!2/"""!"C%$'()**)+,'-145N'"D%$'()**)+,'L+2/)?('U.O.*+:(.,6'0,3'</+(+6)+,'@AA+2,645606.N'"8%$'()**)+,'L+2/)?('I,6./:/)?.'@AA+2,64\+,0::/+:/)06.3B

Z2,-,'$+!"]!'!)$2"0&'*JU+$+!"#&'*,'7"#4)"+6!"c4%$2"]43!)'-!'+"0,.%$2"W4+!"()47)$-",'"+6!"R!($)+-!'+"4# "Y4--!)%!/"86,."()47)$-"1,22":!"#&'*!*"#)4-"+6!"Y4&'+5"d!.!$)%6"U!)3,%!."H%%4&'+"$'*"Y,+5"$'*"841'"d!.!$)%6"U!)3,%!."H%%4&'+/"'!"CEF7$$$'-145B

d!*&%!"($..J+6)4&76"#&'*,'7"#4)"+6!">''43$+,3!"d!.!$)%6"8!$-."eZ'+)!()!'!&),$2"U+$).f"()47)$-",'"+6!"R!($)+-!'+"4# "Y4--!)%!<"16,%6")!%)&,+."$'*")!+$,'."6,76J2!3!2")!.!$)%6!)."#4)"4&)"(&:2,%")!.!$)%6"&',3!).,+,!./""!"CFE7$$$'-145B

ProposedSpending

$71.1 million

ProposedReduction

$13.1 million

?O


d!*&%!"#&'*,'7"#4)".+$+!"%4'+)$%+."1,+6"+6!"E$.6,'7+4'"8!%6'42475"Y!'+!)<"16,%6"#$%,2,+$+!."($)+'!).6,(."$-4'7"&',3!).,+,!.<"(),3$+!",'*&.+)5"$'*"743!)'-!'+"+6$+".+,-&2$+!"+6!"!%4'4-5"+6)4&76")!3!'&!"7!'!)$+,4'<"'!1"%4-($',!."$'*"-4)!"T4:./"'!"F$$7$$$'-145B

d!*&%!"($..J+6)4&76"#&'*,'7"#4)"+6!"U(49$'!">'+!)%422!7,$+!"d!.!$)%6"$'*"8!%6'42475">'.+,+&+!<"4)"U>d8><"16,%6"*!2,3!)."!'+)!()!'!&),$2"%4$%6,'7<"'4J"4)"241J%4.+":&.,'!..".!)3,%!.<"$%%!.."+4"%$(,+$2"$'*"2!7$2".!)3,%!./"U>d8>",."!'%4&)$7!*"+4")$,.!"24%$2"#&'*."+4"4##.!+"+6!")!*&%+,4'/""!"#$$7$$$'-145B

d!*&%!"#&'*,'7"#4)"+6!"E$.6,'7+4'"U+$+!"Z%4'4-,%"R!3!24(-!'+"Y4--,..,4'",'"+6!"R!($)+-!'+"4# "Y4--!)%!<"16,%6"()43,*!."(2$'','7<"!3$2&$+,4'<"-4',+4),'7"$'*"(42,%5"$'$25.,."#4)"+6!".+$+!F."!%4'4-,%"*!3!24(-!'+".5.+!-/"'!"DDF7$$$'-145B'

?L

GOVERNMENT EFFICIENCY

Y,+,P!'."!D(!%+".+$+!"743!)'-!'+"+4":!")!.(4'.,3!<"!##!%+,3!"$'*"2!$'/"84&76"!%4'4-,%"+,-!."*!-$'*"+6$+".+$+!"$7!'%,!."2449"%$)!#&225"#4)"!3!)5"4((4)+&',+5"+4",-()43!".!)3,%!."$'*"%&+"%4.+./"]43!)'4)"])!74,)!",."+$9,'7"$*3$'+$7!"4# "+6!")!%!..,4'"+4"%),+,%$225"!D$-,'!"!3!)5"($)+"4# ".+$+!"743!)'-!'+"+4"!'.&)!"+6$+"!..!'+,$2".!)3,%!."$)!"*!2,3!)!*"$."!#=%,!'+25"$."(4..,:2!/"l!)":&*7!+"1,22".$3!"MXX/O"-,22,4'":5")!*&%,'7"+6!")$+!."$'*"$%6,!3,'7"4+6!)"%4.+".$3,'7."+6$+".+$+!"$7!'%,!."%6$)7!"4+6!)".+$+!"$7!'%,!."#4)"3$),4&."$*-,',.+)$+,3!".!)3,%!.<".!3!)$2"4# "16,%6"$)!"*!.%),:!*":!241/

86!"]43!)'4)"()4(4.!."+4"%4'.42,*$+!".!3!)$2"$7!'%,!."+6$+"()43,*!"`:$%9"4#=%!a".!)3,%!."+4"4+6!)".+$+!"$7!'%,!./"86!"R!($)+-!'+"4# "]!'!)$2"H*-,',.+)$+,4'"$'*"U+$+!"I),'+!)<"$'*"(4)+,4'."4# "+6!"*!($)+-!'+."4# "I!).4''!2<">'#4)-$+,4'"U!)3,%!."$'*"S#=%!"4# "0,'$'%,$2"b$'$7!-!'+<"1,22":!"%4'.42,*$+!*",'"+6!"'!1"R!($)+-!'+"4# "Z'+!)(),.!"U!)3,%!./"86,."-!)7!)"1,22".$3!"M?/O"-,22,4'",'"+6!".!%4'*"5!$)"4# "+6!":,!'',&-"$'*"()4-4+!"-4)!"!#=%,!'+"743!)'-!'+/"E!"!D(!%+"#&+&)!".$3,'7."+6)4&76"!%4'4-,!."4# ".%$2!/""

>'"$**,+,4'<"+6!"]43!)'4)"()4(4.!."+4"%4'.42,*$+!"+6!"l&-$'"d,76+."Y4--,..,4'<"S#=%!"4# "E4-!'F."$'*"b,'4),+5"K&.,'!.."Z'+!)(),.!.<"Y4--,..,4'"4'"H.,$'"I$%,=%"H-!),%$'"H##$,).<"Y4--,..,4'"4'"l,.($',%"

H##$,)."$'*"Y4--,..,4'"4'"H#),%$'"H-!),%$'"H##$,).",'+4"+6!"'!1"S#=%!"4# "Y,3,2"d,76+./"86)4&76"+6,."($)+'!).6,("$7!'%5<"1!"1,22"%4'+,'&!"4&)",-(4)+$'+"14)9"+4"#4.+!)"4((4)+&',+5<"()4+!%+"%,3,2"),76+."$'*"-$,'+$,'"$"%4--,+-!'+"+4"*,3!).,+5/"86,."%4'.42,*$+,4'"1,22".$3!"M?LV<@@@"43!)"+6!":,!'',&-/

What We Invest In

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

86!"()4(4.!*"R!($)+-!'+"4# "Z'+!)(),.!"U!)3,%!."1,22"2$&'%6"$"#4&)J:,!'',&-"()4T!%+"+4")!J!'7,'!!)"+6!".+$+!F."%4)!"='$'%,$2"$'*"$*-,',.+)$+,3!"()4%!..!./"Q(*$+!*".5.+!-."1,22"%&+"%4.+."$'*"+,-!".(!'+"4'".+$+!1,*!"='$'%,$2"$'*"$*-,',.+)$+,3!"()4%!..!.<".,7',=%$'+25")!*&%!".5.+!-."*&(2,%$+,4'<",-()43!"$%%!.."+4"-4)!")!$2J+,-!"='$'%,$2"$'*"()4%!..",'#4)-$+,4'<"$'*"-$9!"743!)'-!'+"-4)!"+)$'.($)!'+"#4)"%,+,P!'./""!"D8%&'()**)+,'+6=./'S2,3'?+2/A.?B

ProposedSpending

$2.8 billion

ProposedReduction

$227.4 million

C@


86!"R!($)+-!'+"4# "0,'$'%,$2">'.+,+&+,4'F."b4)+7$7!"c!'*,'7"0)$&*"I)4.!%&+,4'"()47)$-<"16,%6".&((4)+."+6!"#)$7,2!"64&.,'7"-$)9!+":5"()4+!%+,'7"64-!:&5!).<"1,22":!"%4'+,'&!*/"'!"D%$'()**)+,'V+/6K0K.'J.,3),K'1/023'</+?.A26)+,'@AA+2,645606.B

How We Achieve Savings

Z2,-,'$+!"?A"#&22J+,-!"!^&,3$2!'+"!-(245!!.<"4)"08Z.<"164"14)9",'"+6!"R!($)+-!'+"4# "]!'!)$2"H*-,',.+)$+,4'"4'"%4'+)$%+,'7"$'*"()4%&)!-!'+<"()4T!%+"-$'$7!-!'+<"7)4&'*.<"%&.+4*,$2<"$..!+"-$'$7!-!'+<")!$2"!.+$+!<"+)$*!."$'*"$*-,',.+)$+,3!".!)3,%!./""!"G%C'()**)+,'+6=./'S2,3'?+2/A.?B

Z2,-,'$+!"!,76+"(4.,+,4'.n")!*&%!".+$## ")!.4&)%!."#4)",'+!)'$2"+!%6',%$2"$..,.+$'%!<")!.(4'.!."+4"4&+.,*!"*$+$",'^&,),!."$'*"$*"64%":&*7!+"*$+$"$'$25.,.n"$'*"-$,'+$,'"3$%$'%,!.",'"+6!"S#=%!"4# "0,'$'%,$2"b$'$7!-!'+/""!"C%D'()**)+,'-145B'

Z2,-,'$+!".!3!'"$*-,',.+)$+,3!"2$1"T&*7!."$'*"+6)!!".&((4)+".+$## ",'"+6!"S#=%!"4# "H*-,',.+)$+,3!"l!$),'7./"H."!$%6"T&*7!"%4-(2!+!."$:4&+"?O"%$.!."(!)"1!!9<"ALX"#!1!)"%$.!."1,22":!"%4-(2!+!*"!$%6"1!!9/""!"#%$'()**)+,'@3(),)?6/06)O.'X.0/),K?'[.O+*O),K45606.B

d!*&%!"%6$)7!.":5"+6!"R!($)+-!'+"4# ">'#4)-$+,4'"U!)3,%!."+4"4+6!)"$7!'%,!."#4)"-$,'#)$-!".!)3,%!.<"2!$.,'7"$'*":)49!)$7!".&((4)+<"$)%6,3$2".+4)$7!"$'*"4+6!)".!)3,%!./""!"G%#'()**)+,'U060'</+A.??),K'[.O+*O),K'@AA+2,64@::/+:/)06.3N'"&%&'()**)+,'U060'</+A.??),K'[.O+*O),K'@AA+2,64\+,0::/+:/)06.3B

d!*&%!".!3!'"08Z.",'".+$+!1,*!">8"(42,%5"$'*"()4T!%+"43!).,76+",'"+6!"I42,%5"d!7&2$+,4'"R,3,.,4'"4# "+6!"R!($)+-!'+"4# ">'#4)-$+,4'"U!)3,%!./"86,.".+$+!1,*!"#&'%+,4'"1,22"-43!"

+4"+6!"S#=%!"4# "0,'$'%,$2"b$'$7!-!'+/">'"$**,+,4'<"+6!"*!($)+-!'+"1,22")!*&%!"NV/N"08Z."#)4-"!#=%,!'%,!."+6$+"1,22")!.&2+"#)4-".+$#='7"+6!"'!1"U+$+!"R$+$"Y!'+!)"$'*"+6!"()4(4.!*"R!($)+-!'+"4# "Z'+!)(),.!"U!)3,%!./""!"#%$'()**)+,'U060'</+A.??),K'[.O+*O),K'@AA+2,64@::/+:/)06.3N'"D$%&'()**)+,'U060'</+A.??),K'[.O+*O),K'@AA+2,64\+,0::/+:/)06.3B

d!*&%!"+6!"Y4'.&-!)"I)4+!%+,4'"R,3,.,4'<"l4-,%,*!">'3!.+,7$+,4'"8)$%9,'7"U5.+!-"$'*"Y),-,'$2">'3!.+,7$+,4'"$'*"I)4.!%&+,4'"&',+.",'"+6!"S#=%!"4# "+6!"H++4)'!5"]!'!)$2/"86!"H++4)'!5"]!'!)$2F."S#=%!"1,22"$2.4",'.+,+&+!":!.+"-$'$7!-!'+"()$%+,%!."#4)".+$+!"$7!'%5"&.!"4# ",+.".!)3,%!."$'*"%&+"$7!'%5"43!)6!$*"+4")!G!%+"241!)"2!3!2."4# ".!)3,%!"+4"%2,!'+"$7!'%,!./""!"D%8'()**)+,'-145N'"#8%8'()**)+,'J.K0*'5./O)A.?'[.O+*O),K'@AA+2,645606.B

U&.(!'*"+6!".+$+!"()!.,*!'+,$2"(),-$)5/"Z3!)5"#4&)"5!$).<"+6!".+$+!"4# "E$.6,'7+4'",.")!^&,)!*":5"2$1"+4"%4'*&%+"$"()!.,*!'+,$2"(),-$)5"$'*")!,-:&).!"%4&'+,!."#4)"+6!".+$+!F.".6$)!"4# "!2!%+,4'"%4.+."#4)"+6!"(),-$)5/"E6,2!"+6!"'!D+"()!.,*!'+,$2"(),-$)5",.".%6!*&2!*",'"?@A?<"+6!"U!%)!+$)5"4# "U+$+!"1,22",'+)4*&%!"2!7,.2$+,4'"+4".&.(!'*",+/""!"D$%$'()**)+,'-145B

Y24.!"+6!"R!($)+-!'+"4# "I!).4''!2F."Z-(245!!"H..,.+$'%!"I)47)$-"4#=%!",'"U!$++2!"$'*".&.(!'*"+6!"I!)#4)-$'%!"Y4'=)-$+,4'"I)47)$-<"16,%6"$7!'%,!."&.!"+4")!%47',P!"$'*")!1$)*"6,76"(!)#4)-!)./"H."$"($)+"4# "+6!"%4'.42,*$+,4'",'+4"$"%!'+)$2".!)3,%!."$7!'%5<"+6!"*!($)+-!'+"1,22"!2,-,'$+!".!3!)$2")!*&'*$'+"$*-,',.+)$+,3!"$'*"#$%,2,+,!."(4.,+,4'."$'*")!*&%!"+6!"l&-$'"d!.4&)%!"b$'$7!-!'+">'#4)-$+,4'"U5.+!-"+!$-/""!"F%#'()**)+,'U060'</+A.??),K'[.O+*O),K'@AA+2,6N'"#%$'()**)+,'U.:0/6(.,6'+S '<./?+,,.*'5./O)A.'@AA+2,6B

CA


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

U+)!$-2,'!"()4%!..!."$+"+6!"K4$)*"4# ">'*&.+),$2">'.&)$'%!"H((!$2."+4".6$)(!'"#4%&."4'",+."%4)!"-,..,4'."4# "6!$),'7."$'*"-!*,$+,4'/""!"D%F'()**)+,'@AA)3.,6'@AA+2,645606.'0,3'V.3)A0*'@)3'@AA+2,645606.B

Z2,-,'$+!":!'!=+.<")!*&%!"$7!'%5"43!)6!$*"$'*"-$D,-,P!"#!*!)$2"#&'*.",'"+6!"Y),-!"[,%+,-."Y4-(!'.$+,4'"I)47)$-",'"+6!"R!($)+-!'+"4# "c$:4)"$'*">'*&.+),!./""!"C%D'()**)+,'-145B

C?

!"#$%&'()&*#("(+*),,%-+*),*,%&"&-%".*/"&"'+/+&(%&#01"&-+*20%.3%&'*!*4)*2)5*67887

).9/4%":*!"**;<=>6?7887*!*@7A>B*;>C?>===*!*,"5*@7A>B*AA6?C<7C

Budget Policy Highlights · Highlights Budget &Policy GOVERNOR CHRIS GREGOIRE Proposed 2011-13...

Documents

Transcript of Budget Policy Highlights · Highlights Budget &Policy GOVERNOR CHRIS GREGOIRE Proposed 2011-13...