Sine Die

After a 105-day regular session and a 30-day special session the Washington State Legislature adjourned the 2011 legislative session this evening.

The 2012 supplemental session will convene on January 9, 2012.  To keep up on all the happenings between now and then stay tuned…

Senate Passes Operating and Capital Budgets; Budgets Now Head to Governor

This evening the Washington Senate passed the conference operating and capital budgets for the 2011-13 biennium. 

2011-2103 Operating Budget
The Senate passed the operating buget with a vote of 34-13. The conference biennial budget addresses a $4.9  billion shortfall, making approximately $4.5 billion in policy level reductions. The budget reduces funding for higher education institutions by $535 million.  The Evergreen State College is reduced by $12.152 million and authorized to increase tuition by 14% per year for the biennium.

In addition the budget maintains the state need grant to offset budgeted tuition increases to students and reduces, but does not eliminate , state work study.

Bond Bill

With a vote of 46-1, the Senate passed legislation (HB 2020)  to provide $1.4 billion in new state general obligation bonds to support the 2011 Supplemental and 2011-13 Capital Budget. In addition the bill reduces 2011 Supplemental bond appropriations by $32 million.

Capital Budget

With a vote of 47-0, the Senate passed the 2011-13 capital budget (HB 1497). The  2011-13 Capital Budget authorizes $3.1 billion in new capital projects, of which $1.4 billion are financed with new state general obligation bonds.

It is the combination of HB 1497 and HB 2020 that will provide the funds to support Evergreen’s capital projects

Senate Passes Endowment Bill; Heads to Governor

Late this afternoon the Washington Senate passed legislation that would establish an endowment for students studying in high-demand fields.

HB 2088 creates the Opportunity Scholarship Program and the Opportunity Expansion Program to mitigate the impact of tuition increases, increase the number of baccalaureate degrees in high employer demand and other programs, and invest in programs and students to meet market demand fields of study while filling middleincome jobs with a sufficient supply of skilled workers. 

 House Bill 2088 now goes to the Governor.

House Passes Trio of Bills to Implement Capital Budget

This morning the Washington House passed a series of bills that together will implement the capital budget for the 2011-13 biennium.

State Debt Limit

With a vote of 79-14 the House passed legislation to reduce the state debt limit. Senate Bill 5181 requires the State Finance Committee to recommend a working debt limit for purposes of budget development for capital bond appropriations that is lower than the constitutional debt limit. The working debt limit must be updated periodically following the Economic and Revenue Forecast Council’s forecasts, and may be modified in response to extraordinary economic conditions.

The State Finance Committee must recommend the following working debt limits: 
  •  8.5 percent for the 2015-2017 biennium
  • 8.25 percent for the 2017-2019 biennium;
  • 8 percent for the 2019-2021 biennium; and
  • 7.75 percent for the 2021-2023 biennium and thereafter.

The State Finance Committee may reduce or delay the issuance of bonds if an issuance would result in exceeding the recommended working debt limit. Finally, the Governor and the Legislature must develop capital bond budgets within the recommended working debt limit.

In addition the bill creates a Commission on State Debt to assist the Legislature in examining the kinds of debt incurred by the state, and the limits on the amount and use of debt.

The twelve-member Commission is chaired by the State Treasurer, and also includes the Director of the Office of Financial Management, four legislative members, and six independent members.

Bond Bill

With a vote of 84-10, the House passed legislation (HB 2020 to provide $1.4 billion in new state general obligation bonds to support the 2011 Supplemental and 2011-13 Capital Budget. In addition the bill reduces 2011 Supplemental bond appropriations by $32 million.

Capital Budget

With a vote of 94-0, the House passed the 2011-13 capital budget (HB 1497). The  2011-13 Capital Budget authorizes $3.1 billion in new capital projects, of which $1.4 billion are financed with new state general obligation bonds.

It is the combination of HB 1497 and HB 2020 that will provide the funds to support Evergreen’s capital projects.

All three bills now go to the Senate for further consideration.

Legislature Releases Conference Capital Budget

The Legislature released a conference agreement on a biennial capital budget.

The conference capital budget provides for $1.1 billion in bond-supported capital budget capacity for the state.

The conference capital budget provides $496.5 million for higher education facilities. Over half of the funds go to the four-year institutions. This includes funding for Evergreen’s Communications Building (partial funding) and science lab renovation.

Agreement Reached on State Debt Limit

Late this afternoon the House and Senate announced an agreement on the capital budget and the key policy issue that has prevented a budget to date – the state debt limit.

The 2011-13 biennial capital budget will be a capital budget with some limits to the debt capacity.

The key points of the agreement include:

  • A smaller 2011-13 capital budget (approximately $1.1 billion) 
  • Something will be placed into statute this year on a working debt limit but a constitutional amendment will not be sought at this time.
  • The debt limit will be reduced over a period of time.
  • A blue ribbon commission will be established (SB 5181) to study and recommend changes to the state’s debt capacity, with the authority to block bonds if its recommendations are ignored. The commission will include legislators, the state treasurer, OFM, and others with expertise on bonds and financing.

The actual budget for capital projects will come in two stages. The cash projects in the capital budget will appear in a striking amendment for SHB 1497.  In addition the Legislature will pass a striker to a second bill (HB 2020) which is the bond bill.

The capital budget is expected to be released some time tomorrow.

Conference Operating Budget Announced and Moved

This morning the Washington House and Senate announced a conference operating budget for the 2011-13 biennium. By this afternoon the House had voted 54-42 to move the budget to the Senate.  The Senate is expected to take up the budget tomorrow.

2011-2103 Operating Budget
The conference biennial budget addresses a $4.9  billion shortfall, making approximately $4.5 billion in policy level reductions. The budget reduces funding for higher education institutions by $535 million.  The Evergreen State College is reduced by $12.152 million and authorized to increase tuition by 14% per year for the biennium.

In addition the budget maintains the state need grant to offset budgeted tuition increases to students and reduces, but does not eliminate , state work study.

In addition to the reductions to higher education the proposed budget makes the following reductions.

  • $1.2 billion – Elimination of Initiative 728 and Initiative 732
  • $344 million -Change in how certain future pension benefits are calculated for Plan 1 retirees
  • $215 million – Elimination of K-4 class enhancement
  • $179 million – K-12 employee salary reduction
  • $177 million – 3% salary reduction in state employee salaries
  • $150 million – Hospital rates and related changes
  • $129 million – Reduction to Basic Health Plan
  • $116 million – Reform to the Disability Lifeline cash program
  • $97 million – Reduction of personal care hours for long term care and developmentally disabled clients
  • $61 million – Change to K-12 National Board Bonus program
  • $57 million – Student assessment system changes

Senate Concurs on Bill to Eliminate HECB

This afternoon the Washington Senate concurred on legislation – with a vote of 47-0 – to eliminate the Higher Education Coordinating Board and create the Office of Student Financial Assistance and the Council for Higher Education by July 1, 2012.

Senate Bill 5182 eliminates the Higher Education Coordinating Board on July 1, 2012, and establishes a Council for Higher Education subject to recommendations of a Steering Committee on Higher Education and legislation enacted in 2012.

The Steering Committee on Higher Education will be chaired by the Governor or her designee and include four legislators and equal representation from higher education sectors in the state.

Between now and July 1, 2012 the Higher Education Coordinating Board will continue several of its current responsibilities but not all. Senate Bill 5182 eliminates several Higher Education Coordinating Board functions to reflect the reduction in state funding for the agency. The areas eliminated include reporting on state support received by students, the costs of higher education, gender equity, capital budget prioritization, technology degree production, costs and benefits of tuition and fee reciprocity with Oregon, Idaho, and British Columbia, and transmitting undergraduate and graduate educational costs to boards of regents.

The bill now goes to the Governor for her consideration.

House Passes Legislation to Eliminate the HECB

This afternoon the Washington House passed legislation – with a vote of 59-28 – to eliminate the Higher Education Coordinating Board and create the Office of Student Financial Assistance and the Council for Higher Education by July 1, 2012.

Senate Bill 5182 eliminates the Higher Education Coordinating Board on July 1, 2012, and establishes a Council for Higher Education subject to recommendations of a Steering Committee on Higher Education and legislation enacted in 2012.

The Steering Committee on Higher Education will be chaired by the Governor or her designee and include four legislators and equal representation from higher education sectors in the state.

Between now and July 1, 2012 the Higher Education Coordinating Board will continue several of its current responsibilities but not all. Senate Bill 5182 eliminates several Higher Education Coordinating Board functions to reflect the reduction in state funding for the agency. The areas eliminated include reporting on state support received by students, the costs of higher education, gender equity, capital budget prioritization, technology degree production, costs and benefits of tuition and fee reciprocity with Oregon, Idaho, and British Columbia, and transmitting undergraduate and graduate educational costs to boards of regents.

The bill now goes back to the Senate for concurrence.