Campaign for 20%

March 6, 2024

In Brief: The workgroup proposed by Governor Inslee was in the final, approved budget for Washington State! The workgroup is tasked with assessing the impact of contracting structures on human service organizations. Read on for the full text of the budget.

In Full: The Campaign is grateful for the support of the Governor’s office, Senator Frame, Senator Nguyen, and Representative Cortez, all of whom were instrumental in this year’s efforts to get a workgroup into the State budget.

The budget includes $500,000 and the following language regarding the purpose of the line item:

(8)(a) $500,000 of the general fund state appropriation for fiscal year 2025 is provided solely for the department to examine allowable expenses and the contracting process of human service provider contracts that have been directly contracted by the department or have been contracted by an entity that received funding by these departments for human services. The department may contract with an external consultant to consult a work group and evaluate the following issues:

(i) Assess if existing contracting structures for human service providers that utilize state funding are adequate for sustaining the human services sector;

(ii) Assess alternative contracting structures for human service providers that may exist within the United States;

(iii) Assess the viability of a lowest responsible bidder contracting structure for state human service providers contracts;

(iv) Facilitate discussions among interested parties; and

(v) Develop recommendations for necessary changes in state RCW or agency rule.

(b) The department or consultant must engage with and seek recommendations from a work group representing diverse organizations from around the state and whose membership may include:

(i) Human service provider organizations;

(ii) State government agencies that manage human service contracts;

(iii) The office of equity; and

(iv) Local governments.

(d) The department must submit a final report to the governor and the appropriate committees of the legislature by June 30, 2025. The final report must include:

(i) An evaluation of existing contracting structures for human service provider contracts that utilize state funding are creating hardship for human service providers; and

(ii) Recommendations for necessary changes in the Revised Code of Washington or agency rule to address structural hardships in human services contracting.