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On April 23, 2005, the Legislature passed the 2005-07 biennial budget. About half of Ecology’s funding is for agency operations (operating budget) and the other half is for grants to local governments for environmental projects and activities (capital budget). Together the Operating and Capital budgets for next biennium total about $785 million. This is a substantial investment in the environment, especially given the $1.6 billion shortfall in the General Fund Operating budget. Like Governor Gregoire’s proposal, the final legislative budget relies mostly on a mix of fund transfers, cuts, and savings, with about $313 million of the shortfall covered by new revenue from tax changes.
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