Special Session Enters Second Week

Next week marks the second week of the first special session of 2011.  Scheduled for a maximum of thirty days, the Legislature has until May 25 to act on a biennial operating and capital budget as well as several policy bills (approximately 48)  necessary to implement the budget. 

This past week the House met in caucus most of Tuesday. While most of the members returned to their districts for the week, House leadership remained in Olympia to continue budget negotiations with the Senate. The House is expected to return for a morning caucus on Monday and then floor session in the afternoon to consider legislation.

The Senate convened on Tuesday afternoon and continued floor sessions intermixed with Ways & Means Committee hearings and executive sessions through Thursday. The Senate is expected to return on Tuesday and continue a similar pattern of floor sessions and committee hearings this coming week.

Throughout the past week and into the next couple of weeks the House and Senate will continue to work towards a compromise budget. Yesterday House leadership delivered a compromise offer to the Senate. The Senate is now working to send back a response.

Overall the Senate budget cuts $4.8 billion compared to $4.4 billion in the House. The two budgets are reasonably close with only about $330 million separating the two budgets.  However the chambers face strong differences with regard to a handful of policy proposals including salary reductions for K-12 employees, leasing of state liquor operations to a private company, sending the State Motor Pool and real-estate contracts management to the private sector, and furloughs for state employees making more than $50,000.

 

Special Session Kicks Off

The first special session of 2011 began this morning. Over the next thirty days lawmakers are expected to pass a biennial operating and capital budget plus an estimated sixty policy bills necessary to implement the budgets. Many bills from the regular session will need to be reintroduced during the special session. In special sessions, all bills lawmakers had advanced to the opposite chamber go back to their House of origin.

The House will convene primarily leadership and top budget leaders during the next couple of weeks in Olympia, while the majority of members  remain in district until budget negotiations are nearly completed.

The Senate will convene on the floor at 1:00 p.m.  The entire Senate is expected to be in Olympia today and at least through the next two weeks moving legislation forward to implement the budget. This work will begin this afternoon when the Senate Ways & Means Committee meets at 2:30 to hear the following four bills.

  • SB 5912 – Expanding family planning services to two hundred fifty percent of the federal poverty level.
  • SB 5935 – Addressing adoption support payments for hard to place children.
  • SB 5941 – Concerning judicial branch funding.
  • SB 5472 – Changing the apportionment schedule to educational service districts and school districts for the 2010-11 school year
  • The Special Session Takes Shape

    Yesterday the Legislature adjourned – sine die- around 4:00 p.m. without resolving either the operating or the capital budgets.

    Both the House and Senate will return for the first special session of 2011 on Tuesday. The special session could run up to thirty days.

    The House and Senate may approach the special session in a different way. The Senate plans to work next week already scheduling the first of many Ways & Means Committee hearings on Tuesday at 2:30.

    The House is still considering a rolling recess which would bring some members back for a pro forma session but does not require all House members to be present for the session. Neither body can be out of session for more than three days without mutual agreement.

    Gregoire said her intention was to limit the topics to the budget and the policy bills that are necessary to implement the budget. However, the governor can’t limit what the legislature discusses, so anything could be on the table.

    It appears, thought, that  legislative leaders have agreed to narrow their special-session work to the budget, related bills and issues such as workers’ compensation reform, consolidation of agencies, changes to the Guaranteed Education Tuition program and higher-education bills.

    Finding a compromise with regard to the budget will be a big task.  The House and Senate are within $250 million of each other on a $32 billion spending plan.  However, there are  major differences to overcome with regard to the budget.

    Among the large issues separating the two chambers is  a Senate proposal to reduce K-12 salaries by 3%, tuition in the colleges and universities, the disability lifeline, and whether to adopt new revenues to bridge the shortfall.

    In addition, the Senate’s proposal to send a constitutional amendment to the voters to lower the debt limit from 9% to 7% is a big sticking point. The Senate has said it won’t move the capital budget without the constitutional amendment; the House has said it won’t do the capital budget until the bond bill passes.

    What is Next for the Legislature…

    As of this afternoon there is still no word about when the Governor will call the Legislature back to Olympia to finalize their work.

    Though an announcement is expected either later today or tomorrow it remains unclear whether Governor Gregoire will call policymakers back immediately or give them some time away.  Word on the street is that the Senate prefers to convene next week, while House leadership is sending signals that waiting until all involved are closer to an agreement may be the preferred method. An option to both is to call a 30-day session early next week and put the session into a rolling recess that lets most lawmakers stay in district and rejoin in Olympia when the deals are agreed on either in May or June.

    So where does this leave everything as the regular session comes to an end this week – most likely tomorrow (April 22).

    Operating Budget
    Both the House and Senate have passed a biennial operating budget.  Since the proposals are different a conference committee will be established. It is expcted that the budget conferees will include Senators Murray, Kilmer, Zarelli and Representatives Hunter, Sullivan,  and Alexander.

    Capital Budget
    The House Capital Budget (now comprised of two bills HB 1497 (building fees) and HB 2020 (state bonds)) is on the floor for consideration. The Senate Captial Budget is in the Ways & Means Committee awaiting executive action.

    Neither budget is moving because of differences with regard to the state debt limit. The capital budget discussion is being framed within the context of Senate Joint Resolution 8215 which would seek a constitutional amendment to phase down the debt limit from 9 to 7 percent in half-percent increments. The action would begin in Fiscal Year 2016 and continue through FY  22.  In addition the resolution would shift the state’s bond model from a three-year rolling average to a ten-year rolling average. 

    SJR 8215 passed the Senate unanimously last week and the sponsors of the constitutional amendment will not negotiate on the capital budget unless the House approves the amendment.

    Policy Bills
    The Legislature still has more than 60 bills to pass that are necessary to implement the budgets. Of particular interest to higher education are bills that would impact how institutions offset tuition increases and report on performance, how institutions implement a 3% salary reducation, and potential changes to higher education pensions.

    House Higher Education Discusses the Interim

    Yesterday the House Higher Education committee held a work session on interm planning.

    Several members of the committee shared potential ideas and discussion points for the interim. Among those mentioned by members include the need to fully understand the budgetary impacts on students and the institutions, to re-examine remedial education, and to engage in the public with regard to higher education.

    In addition Chair Seaquist proposed a series of meetings across the state – at each of the four-year, public campuses – with the intention  of getting to know higher education in Washington better and to discuss issues impacting higher education in an effort to develop a 2012 legislative agenda.

    Washington Senate Passes Operating Budget

    The Senate passed the biennial operating budget this afternoon.

    With only one week left in the regular 2011 legislative session, the action taken by the Senate moves the state closer toward closing the budget gap.

    The operating budget now goes to the House for agreement. Since the proposals are different a conference committee will be established. Budget conferees are expected to include Senators Murray, Kilmer, Zarelli and Representatives Hunter, Sullivan,  and Alexander.

    House Education Appropriations Committee Discusses Interim Plans

    This morning the House Education Appropriations committee held a work session on interm planning.

    Several members of the committee shared potential ideas and discussion points for the interim. Among those mentioned with regard to higher education included nonresident vs. resident enrollments, teacher preparation, the gap between those who graduate from high school and those that enroll in some form of postsecondary education, and the use of technology.

    2011 Legislative Session: Week 15

    This is the last week of the regular session, though it is expected that the Legislature will return for a special session.

    Operating Budget
    Today (April 18) the Senate will take floor action on the operating budget. Once the Senate passes the operating budget the bill will return to the  House for agreement. Since the proposals are different a conference committee will be established. Budget conferees are expected to include Senators Murray, Kilmer, Zarelli and Representatives Hunter, Sullivan,  and Alexander.

    Capital Budget
    On Tuesday the Senate is expected to take action on their proposed capital budget and move it out of committe and to the floor. A Senate Ways & Mean executive session is scheduled for 2:30 p.m.

    The capital budget discussion is being framed within the context of Senate Joint Resolution 8215 which would seek a constitutional amendment to phase down the debt limit from 9 to 7 percent in half-percent increments. The action would begin in Fiscal Year 2016 and continue through FY  22.  In addition the resolution would shift the state’s bond model from a three-year rolling average to a ten-year rolling average. 

    The resolution is being discussed as a way to reduce debt service payments in the operating budget. For the 2011-13 biennium, the hit to the operating budget is about $2 billion on the bonds.

    While there are several supporters there are also several skeptics. Skeptics argue that the shift in capacity will limit the size of the capital budget for the next few biennia and will make it tougher to fund a broad array of construction projects.

    Other Legislative Work
    Throughout the week, legislators will be focused on moving legislation forward in the process. This will consist of each chamber taking action on bills that are necessary to implement the budget and bills that require either chamber to concur or not concur on changes made to the bill in the opposite chamber. If either chamber does not concur with the changes then a conference committee will be established to find a compromise.

    In addition, this week’s schedule includes limited committee meetings – primarily focused on interim planning – with most of the time spent on the House and Senate floor.

    Special Session
    The Legislature still must still pass a biennial operating and capital budget and more than sixty bills required to meet the changes and requirements in the budgets. With this heavy lift ahead a special session is certain. The question is when.

    Talk on The Hill suggests that the Legislature will sine die on Thursday with a return as early as Monday, April 25 if there is a commitment to finish up quickly.  The Legislature could also opt for a rolling recess.  A rolling recess would only require essential legislators and staff to show up for work, leaving others to be called in when a deal is agreed upon. The Governor is expected to make an announcement later this week.

    Special Session Expected

    Yesterday Governor Gregoire announced that a special session is expected. 

    After discussions with House and Senate leadership it is unlikely that they will be able to complete their work by April 24 the last day of the regular session. 

    Though the budget process continues to move forward, the Senate passed out the biennial operating budget from Committee to floor last night, the Legislature must still find agreement on the operating and capital budgets and enact over 75 bills necessary to implement the budget.

    The real question is when will the special session begin. Senate and House leadership have indicated that they would like to take a short weekend break and then resume work. But Gregoire said she wasn’t certain if she’d call them back immediately. The governor also said any special session needed to be limited in scope.