Monthly Archives: March 2010

House and Senate Meet Legislative Deadline and Move More Bills Forward

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Yesterday marked the last deadline for the Washington State Legislature prior to adjournment on March 11. By end of day Friday, March 5 the House and Senate must have considered bills from the opposite chamber with the exception of initiatives and bills that are needed to implement the budget.

The action on the floor in each chamber moved several bills of interest to Evergreen forward in the process. Here is a breakdown of the most recent bills that have moved forward.

The House passed Senate Bill 6696 with a vote of 76-22. SB 6696 comprises several policy changes to K-12 to make Washington more competitive for Race to the Top dollars, including policies and structural changes in the areas of school and teacher evaluation, assessment, and preparation.

The bill passd the House with several amendments added to the final version. Of most importance to Evergreen was an amendment that striked language that was of concern to us and replaced it with language that we preferred. The language that was striked would have required the State Board for Community and Technical Colleges to select up to three community colleges to offer a BA plus teaching certificate in a subject matter shortage area.

The language that replaced this portion of the bill directs the Council of Presidents to convene an inter-institutional work group to implement plans prepared by the four-year institutions of higher education in response to a proviso in the 2009-2011 biennial budget regarding increasing the number of mathematics and science teachers. Requires the COP to report to the Education and Higher Education Committees on demonstrated progress toward achieving the outcomes identified in the plans by December 31, 2011.

Senate Bill 6696 now goes to the Senate for concurrence.

The Senate took action on four bills of interest to Evergreen – Senate Bill 6409 and House Bills 2403, 2776, and 2973.

Senate Bill 6409 creates the he Washington Opportunity Pathways Account. Beginning in state fiscal year 2011, all net revenues from in-state lottery games that are not otherwise dedicated to debt service on the Safeco Stadium and Qwest Field and Exhibition Center are dedicated to the new account.

The Washington Opportunity Pathways Account is subject to appropriation by the Legislature, and may only be used for the following programs: recruitment of entrepreneurial researchers, innovation partnership zones, and research teams; the early childhood education and assistance program (ECEAP); the State Need Grant; the State Work Study program; College Bound Scholarships; Washington Promise Scholarships; Washington Scholars; the Washington Award for Vocational Excellence (WAVE); the Passport to College Promise; the Educational Opportunity Grant; and GET Ready for Math & Science Scholarships.

The bill was amended on the Senate floor in two ways: (1) All net income from the multi-state lottery games, other than those dedicated to the Problem Gambling Account, will be deposited into the Washington Opportunity Pathways Account rather than into the General Fund and (2) Clarifies that implementation of new marketing strategies may begin prior to the required reports to the Legislature on those strategies.

Senate Bill 6409 now goes to the House for further consideration.

House Bill 2403 passed the Senate 48-0. HB 2403 expands the use of military leave to include state active duty and clarifies that military leave may only be charged for the days the person is normally scheduled to work for the state or local government.

House Bill 2403 was not amended by the House so does not need to return to the Senate for concurrence.  HB 2403 has been delivered to the Governor for her signature.

House Bill 2776 passed the Senate with a vote of 47-0. HB 2776 implements the recommendations by the Quality Education Council. Of particular interest to Evergreen the bill changes timelines, moves them up a year, for technical working groups on compensation and local finance and puts the Compensation Working Group under the lead direction of the Office of Superintendent of Public Instruction, rather than the Office of Financial Management.

House Bill 2776 now goes back to the House for concurrence.

House Bill 2973 passed with a vote of 46-0 in the Senate. HB 2973 expands the definition of resident student to include a student who resides in Washington and is on active military duty stationed in one of the nine Oregon border counties. In addition, spouses and dependents of active military members stationed in one of the border counties and living in Washington are also eligible for in-state tuition rates as long as the spouse or dependent also resides in Washington. If the person on active military duty moves from Washington or is reassigned out of one of the Oregon border counties, his or her spouse or dependent maintains resident status so long as the spouse or dependent resides in Washington and is continuously enrolled in a degree program.

House Bill 2973 was not amended in the Senate so there is no need for the House to concur on any changes. HB 2973 now goes to the Governor for her signature.

Senate Ways and Means Takes Action on Revenue Bills

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Yesterday, the Senate Ways & Means Committee held a long executive session to take action on  two revenue bills – Senate Bills 6874 and 6143. Both bills reflect the intent of the Senate’s revenue package released in February.

Substitute Senate Bill 6874, passed on a voice vote, would significantly increase the cost of tobacco products in Washington.  If enacted, the bill would increase the tax on cigarettes by $1, to a total of $3.025 per pack of 20 cigarettes. In addition, an added tax of  $1.825 per pack is included on promotions such “as buy one pack get one free” and “two packs for the price of one”.  Finally, cigarettes that are manufactured by nonparticipating members in the master settlement agreement are subject to an additional tax of 42 cents per pack.

The bill also creates the basic health plan stabilization account in which the tax revenue generated will go to  support enrollment in the basic health plan.

The revenue generated for FY11 is expected to be $85.698 million and is estimated to fund approximately 36,600 enrollments in the basic health plan.

Substitute Senate Bill 6874 nows goes to the Senate Floor for further consideration.

Substitute Senate Bill 6143 passed with a vote of 12-10. SSB 6143 includes a proposed temporary three-tenths of 1 percent sales tax increase and the implementation of the Working Families Tax Credit.  

The sales tax increase would be for three years and would include funding for the Working Families Tax Credit to dramatically reduce the impact on low income families. The Washington Department of Revenue has estimated the tax increase would cost the typical household $29.33 a year. The tax credit, provided to those eligible for the federal Earned Income Tax Credit, would provide a minimum rebate of $25.

In addition, the bill closes more than a dozen tax loopholes ( No longer among them is a sales tax exemption for used car trade-ins). Finally, the bill includes the implementation of a sales tax on bottled water (expires June 1, 2015) and the implementation of a three-year business and occupation tax surcharge on services of one-quarter of 1 percent. The latter would be teamed with an increase in the small business tax credit from $35 per month to $70 per month.

The two-bill revenue package would generate $890 million. SSB 6143 now goes to the Senate floor for further consideration.

House Passes 2010 Supplemental Operating Budget

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Late last night the House passed their proposed 2010 supplemental operating budget  (SB 6444) with a vote of 55-43.

Though the House passed their proposed 2010 supplemental operating budget from committee to the floor two weeks ago (HB 2824), it is the Senate’s proposed budget that the House voted on.

The House passed a striker, which strikes the language from the Senate’s proposed 2010 operating budget and replaces it wit the House’s proposed operating budget language (HB 2824). As a result the House effectively passed their proposed operating budget using SB 6444 as the vehicle.

The striking language passed by the House reduces state funding to Evergreen by 3%, of which $415,000 must be used to reduce compensation.  In addition, the Labor Center is transferred to South Seattle Community College (reduces state funding by $150,000) and$5.839 million is transferred from the Evergreen Capital Projects Account to the general fund. Finally, $155,000 is appropriated to the Washington State Institute for Public Policy to conduct various studies.

On the floor the House considered 61 amendments to Senate Bill 6444. Of the 61 amendments, twenty-one passed. Of these the following amendments impact Evergreen.

  • Establishes a legislative task force on four-year higher education institution affordability and access. The group will consist of one member from each caucus of both the House and Senate and will be staffed by legislative staff. The group will recommend a 10-year strategy that aligns state support, financial aid, tuition, and cost management and includes an analysis of higher education business operations and job placement and retention of graduates. The report is due to the Legislature by December 1, 2010.
  • Increases the monthly employer funding rate charged to participating employers for the Public Employees’ Benefits Board (PEBB) health and insurance benefits for fiscal year 2011 from $768 to $863 per eligible employee, and requires the PEBB not to adopt a plan for expenditures on benefits and administration that would project a total reserve level for the end of fiscal year 2011 of less than $90,000,000. The intent of the Legislature is that the Governor immediately request to commence bargaining a corresponding increase in the employee share of health premiums with the coalition of all the exclusive bargaining representatives with which health care benefit funding is bargained. Transfers $30 million from the Data Processing Revolving Fund and $13 million from the Public Works Assistance Account to the Salary/Insurance Increase Revolving Account. This amount is appropriated for agency charges due to the increased monthly employer funding rate in lieu of an appropriation from the state general fund.
  • Reduces the general fund–state appropriation at TheEvergreen State College by $14,000 and appropriates those amounts to the State Board for Community and Technical Colleges for the Labor Education and Research Center.
  • Requires that at The Evergreen State College, $119,207 of the general fund–state appropriation for FY 2011 must be spent on the Longhouse Center and $103,146 of the general fund—state appropriation for FY 2011 must be spent on the Northwest Indian Applied Research Institute.
  • Deletes the section reducing appropriations related to SSB 6503 (temporary layoffs), and directs the Office of Financial Management to develop a schedule of reduced compensation expenditures of state agencies by $48,648,000 million General Fund-State and $51,975,000 from all other funds. The reductions are to be distributed to each agency and institution of higher education proportionately based on each state agency and institution’s share of the total compensation of all state employees.

So what happens next in the legislative process.  Senate Bill 6444 now goes to the Senate for concurrence. Since the Senate’s proposed operating budget and the House’s proposed operating budget differed greatly, it is likely that the Senate will not concur with the changes made in the House. If the Senate does not concur, the bill will go to conference where a final 2010 supplemental operating budget will be developed.

House Higher Education Holds Work Session on Tuition Policy

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This morning the House Higher Education Committee held an interim planning session regarding future work on tuition policy.

In a roundtable styled discussion members of the House Higher Education Committee joined in conversation with representatives from each of the four-year public baccalaureate institutions, the Washington Student Association, the Council of Faculty Representatives, the Washington Education Association, the Council of Presidents, American Federation of Teachers, League of Education Voters, Joint Legislatiave Audit and Review Committee (JLARC) staff, and Higher Education Coordinating Board staff.

The conversation began with an overview of the upcoming JLARC study of a transparent link between revenues, expenditures, and performance outcome measures in higher education. The study, directed to the Committee through passage of ESHB 2344 last session, requires JLARC, in a nutshell, to identify the links between funding sources, performance, and the state’s strategic plan for higher education.

The objectives of the study are grouped into categories of expenditures, revenue, performance outcome measures, and linkages. A preliminary report will be presented by staff at the September 2010 JLARC meeting and the final report at the October 2010 JLARC meeting.

The summary of the upcoming JLARC study provided a foundation for further discussion by those present this morning. The conversation moved from the study to the structure or focus of ongoing discussions between now and the 2011 legislative discussion around performance agreements, funding, tuition, and financial aid.

Members of the Higher Education Committee expressed their goal of wanting to have a healthy higher education system and argued that the JLARC study will serve as a cornerstone of this discussion. In other words, legislators expressed that the state budget is not going to get easier and the pressure on higher education will likely increase with regard to funding and hopes are riding high that the study will provide new insights.

Members also expressed the need to continue a discussion that places into a single conversation policies that impact tuition, financial aid, and cost management at institutions. Representative Anderson, Ranking Minority Leader on the Committee, shared that life has to change at institutiions and life and the commitment by the state has to change not just for the immediate future but for the long haul.

Those representing four-year institutions, faculty, and students focused the conversation on the future of performance agreements in Washington. It was widely recognized that the performance agreements submitted in 2009 reflected very different times and it is unclear how new performance agreements would integrate declining funds.

Rep. Wallace, Chair of the Committee, stated that performance agreements must reflect where the state is at any given time and where the state is headed. This was echoed by some institutional representatives who agreed that a performance agreement must work both in good and bad times.

Emphasis within this conversation was placed on the notion of an “agreement”. This reflects the frustration by institutions and some policymakers that a conversation and an agreement never emerged from the initial submission of performance agreements to a state committee.  Policymakers are concerned that an agreement may make promises that are unable to be met because of the state context or because the tie the hands of future legislatures.

Institutions are concerned that future performance agreements will result in the same ending that happened with the first submission – there was no conversation with policymakers and no process to lead to an agreement between institutions and the state.

In the end the conversation did not go much beyond initial discussions of performance agreements and the role of funding, tuition, and financial aid within a performance agreement framework.

However, the conversation did serve to kick-off interim discussions regarding higher education policy in Washington and is likely to be the first of many meetings between now and January 2011.

Senate Release 2010 Proposed Capital Budget

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Early this afternoon, the Senate released their proposed 2010 supplemental capital budget.

The Senate’s proposed capital budget places greater reliance on Evergreen’s local funds, including the school trust and a portion of student tuition.

Highlights of the proposed budget are below.

Senate Capital Budget Highlights

  • Reduces appropriations for debt limit bonds by $139 million.
  • The reduction of $139 million is a combination of reducing new appropriations for the 2009-11 biennium by $73 million and the reappropriation authority for projects authorized in the prior biennia by $66 million.
  • Avoids exceeding the 9 percent constitutional debt limit.
  • Captures $48 million in savings for major higher education construction projects from competitive bids received for these projects.
  • Provides $36 million in funding for the replacement of Balmer Hall at the University of Washington.

Details of the Senate proposed 2010 capital budget can be found on the Washington State Legislative Evaluation & Accountability Program Committee Website.

Legislature Week 9: What is Happening

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The ninth week of the 2010 supplemental session- the last week of the legislation session – will be focused on closing differences between the Senate and House with regards to the operating and capital budgets as well as revenue.

As of today the proposed 2010 operating and capital budgets as well as revenue packages from the House and Senate have been released.

The floors of both chambers will be the center of legislative action from today through March 11.

The Olympia Coalition for a Fair Budget Protests Budget Cuts During National Day of Action

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Members and supporters of the Olympia Coalition for a Fair Budget, which meets weekly at the Evergreen State College, held a mock funeral for public education yesterday as part of a nationwide day of action centered in California. Students and other community members marched a coffin up the steps of the capitol building, some somber and silent, others wailing and crying. The performance was halted at the doors to the capitol, where State Troopers informed students that they could not bring the large coffin, with the words “RIP Education” written across it, into the capitol building. The group abandoned their coffin, bags and signs at the door and quietly filed into the rotunda, then the Senate gallery.

Once in the gallery the group stood, clad in black funeral garb, as the Senate debated a bill proposing changes to a constitutional bail setting issue. They began humming and then singing a parody of “Amazing Grace,” with lyrics that conveyed the gloom of the dying public higher education system. Lieutenant Governor Brad Owens attempted to silent the group by rapping the gavel and calling on the Sergeant in Arms to remove them. However, the group was permitted to finish their song and filed out peacefully at the end. Following their performance, several members of the Senate applauded, some of them standing to do so.

Following the demonstration, the group convened outside the North entrance of the capitol building to applaud themselves and make plans to testify in the Senate Ways & Means hearing, to be held at 4:30 pm, on a proposed tax of high incomes. Some dozen students were present for the hearing, with around eight testifying in support of the bill. Because the public hearing was announced a mere three hours prior, the bulk of those testifying in support of the bill were those students and community members who had participated in the demonstration and were already on campus. Those opposing the bill included lobbyists for private interest, citizens concerned with already high taxes, and a representative from the Evergreen Freedom Foundation, who highlighted the inability of concerned parties to make it to Olympia to testify in the short amount of time provided.

Full video of the gallery performance


(beginning at 1:42:30)

and alumna & student testimony in Ways & Means

(beginning at 39:15)

Senate Ways and Means Hears Income Tax Legislation

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The Senate Ways & Means Committee held a public hearing late this afternoon on income tax legislation.

The proposed Substitute Senate Bill 6250 refers a new income tax to voters at the next general election. The income tax would be imposed on:

  • An individual’s income that is over $200,000.
  • For a head of a household, income over $300,000 is taxed.
  • For a married couple, the tax applies to income over $400,000.
  • If approved a tax on income is imposed on January 1, 2011, andthe state sales tax would be reduced to 5.5 percent on July 1, 2012.

The plan,presented by some Senate Democrats, would go something like this. The Legislature would pass a temporary sales tax increase, which would go into effect immediately to help alleviate our state’s looming cash-flow problem. In addition, the Legislature would also pass a referendum to the people, giving them the opportunity in November to repeal not just that three-tenths-of-a-cent increase, but an additional half-cent off the state sales tax – taking the state rate down to 6 cents, a level not seen in thirty years. Finally, in its place would go a high earners’ income tax of 4.5 percent on all income over $200,000 for individuals, $300,000 for heads of households, and $400,000 for married couples.

As with any other public hearing on a bill, committee staff provided by an overview of the bill. What was different during this hearing was the normal procedural overview of the bill was intermixed with parliamentary procedures rarely heard. An exciting moment for any political wonk.

After clarification and at the Chair’s discretion, the public hearing moved forward. Testimony opened with an eloquent and strong statement by the sponsor of the legislation, Sen. Rosa Franklin.

Testimony was presented that both favored and challenged the proposed subsitute bill heard before the Committee. Some of those that testified in favor of the bill included students from The Evergreen State College.

The Committee did not take any action on the bill.

Baby Steps but Progress Nonetheless

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The House and Senate continued their hard work to move bills through the final stages of the legislative process.

The House passed SB 6401 with a vote of 98-0. Senate Bill 6401 establishes an alternative selection process for selecting mechanical or electrical subcontractors for general contractor/construction manager projects. Evergreen has supported Senate Bill 6401 from the beginning which offers an alternative approach and more options for the College is this area.

The House amended the bill to require the public solicitation of proposals for a mechanical or electrical contractor be provided to the Office of Minority and Women’s Business Enterprises; and includes the firm’s plan for outreach to minority and women-owned businesses as an evaluation factor for selection of the subcontractor.

Senate Bill 6401 now must go back to the Senate for concurrence.

The Senate passed House Bill 2575 with a vote of 28-19. HB 2575 expands the membership of the Capital Projects Advisory Review Board (CPARB) to

24 members to include representation from local public owners and regional transit authorities. The Evergreen State College works with CPARB in our capital project efforts.  Evergreen supports this change to the Board.

House Bill 2575 now goes to the Governor for her signature.

More Bills Trickle through Process

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As the week nears an end, the House and Senate continue to work hard to move bills through the final stages of the legislative process.

Earlier in the day, the House passed HB 3178 with a vote of 97-1.  House Bill 3178 organizes, consolidates, and, where appropriate, contracts with private providers for technology systems and resources.  In addition, the bill establishes spending restrictions for information technology for the 2009-2011 biennium.

The House passed a striker put forth by the House Ways & Means Committee which replaces the current language but maintains the intent of the bill. In addition, the final bill passed off the House floor with two amendments attached:

  • Amendment 119:  Adds the State Board for Community and Technical Colleges to the list of higher education entities exempted from provisions of the bill.
  • Amendment 118: Removes the section of the bill that changes the Data Processing Revolving Fund from a non-appropriated to an appropriated account.

House Bill 3178 now goes to the Senate for further consideration.

The Senate was also busy moving bills through the process. The Senate passed House Bill 2481 with a vote of 47-0.

HB 2481 allows the Washington Department of Natural Resources (DNR) to become a viable partner in the area of biomass and a potential partner with Evergreen in our Biomass Gasification Project. 

As passed by the House, HB 2481 will allow the DNR to do the following:

  • Allows the department to enter into contract terms up to 15 years when an entity plans and commits to a capital investment of at least 50 million dollars prior to the contract and completes that investment prior to removal of biomass under the contract.
  • Allows the department to include provisions in the agreement that are periodically adjusted for market conditions.
  • Requires the contract to include provisions that allow the department, when it is in the best interest of the trust beneficiaries, to maintain access to existing users of biomass.
  • Ensures that biomass volume conveyed under this chapter will not be counted toward the department’s sustainable harvest target, except that appraised timber sold in a conventional timber sale will count toward the target whether individual trees are ultimately used by that purchaser for timber or biomass energy.
  • Excludes wood from existing old growth forests from the definition of forest biomass

The bills now goes to the House for concurrence.