Introduction to WaTech Allocations (Allocated Rates)

Page updated 7/31/2024

Understanding WaTech revenue

Unlike other state agencies that receive funding in the Enacted Budget, WaTech is a proprietary agency. This means that all our revenue comes from billings to customers (including other state agencies).

Our revenue sources are:

  1. Fee for Service (billed on an “as-used” basis).
  2. Allocations (Allocated Rates) (billed monthly, or in one case, yearly).
  3. Agreements (billed on an “as agreed to” basis).

Allocations constitute “fixed” revenue for WaTech, while Fee for Service and Agreements are variable revenue. Allocations are effectively bundled services or services provided on behalf of the state rather than directly to client agencies. Agencies that pay into an allocation are billed regardless/independent of the utilization of these services. Agencies should consult with agency budget staff, their Office of Financial Management (OFM)-assigned budget analyst, and the OFM Central Services budget analyst directly to better understand the relationship between allocations and associated funding.

 

Rate Day

Every two years, OFM holds a “Rate Day” so that central service agencies can communicate rate changes to other agencies. This allows other agencies to build their budgets (and budget requests, aka “decision packages”) accordingly. Rate Day primarily covers changes to fee-for-service rates but may also include non-routine changes to allocations (e.g. establishing/terminating allocations or a significant change to the methodology “spread” that will impact customers).

OFM publishes the Central Service Model Allocation Methodologies and Data Sources on its public website.