Governor Calls Second Special Session Beginning This AM

Posted on June 12, 2013 by jgarver

Yesterday Governor Inslee held a press conference to announce a second 30-day special session to begin today at 9:00 a.m.

Special sessions are authorized to run for 30 days and the governor cannot limit the types of bills or topics that are considered in a special session. Legislation that was not passed off either the Senate or the House floors will be returned to the Rules Committee in its chamber of origin as part of the close-out process for the regular session.

In addition, the Governor stated that his Cabinet would be meeting to discuss contingency planning as the new fiscal year approaches on July 1. The state constitution does not provide for spending money if no budget is in place July 1, but it does mandate some services that would be required to continue.

Read more here: http://www.thenewstribune.com/2013/06/11/2634910/gov-inslee-plans-for-mmajor.html#storylink=cpy

Senate Responds With Budget and Revenue Package

Posted on June 12, 2013 by jgarver

This weekend the Washington State Senate released and passed a proposed biennial operating budget for the 2013-15 biennium, along with a revenue package and reform legislation.

The budget released by the Senate is similar to the budget proposed at the end of April with two major exceptions.

The Senate passed three policy bills deemed necessary from the Senate’s perspective for a final budget deal. The bills expand a worker’s compensation settlement program, reform the management of K-12 schools and places the emphasis in the state budget on public education (early learning through higher education) by limiting spending on non-education programs. The education reform bill and the spending limit bill contain referendum clauses forcing a public vote on these issues.

In addition, the Senate passed a series of three revenue bills that would increase revenues to the state by approximately $300 million. The revenue package differs from the one passed last week by the House.

The Senate revenue package includes a requirement that non-residents apply for sales tax refunds instead of receiving these refunds automatically. In addition the package includes two additional changes to current taxes including ending a tax break for residential phone services and offering a fix to the recent ruling on the estate tax by the courts. The revenues generated from the telecommunications tax and the estate tax would go to support state human service programs. The proposal passed by the Senate does not seek to close additional tax exemptions as put forward by the House.

Higher Education

The proposed budget assumes no increases in resident undergraduate tuition rates for the 2013-15 biennium. The budget provides $58.2 million in funding to support the core academic functions of the institutions of higher education and an additional $50 million in recognition of the institutions performance in support of statewide goals relating to student retention and degree completion. Finally the budget makes an investment in financial aid.

Additional dollars are provided to WSU to expand their medical programs in Spokane and to establish the Center on Ocean Acidification within the UW.

The investments in the Senate proposal are funded in part with dollars that would be generated from a 20% surcharge on international students who attend the two- and four-year public institutions.

Evergreen

For Evergreen the Senate’s proposed budget would require that tuition remain at zero for the 2013-15 biennium for undergraduate resident students. The College may increase tuition beyond this level but would be required to invest in institutional financial aid.

In addition the budget provides $1.159 million above maintenance level funding to support the core academic functions of the institutions of higher education and $953,000 in recognition of the College’s performance in support of statewide goals relating to student retention and degree completion.

Finally, the Washington State Institute for Public Policy, a public service center of Evergreen, is funded to support six study/research projects for the Legislature.

Things Pick Up at The Leg

Posted on June 7, 2013 by jgarver

With only four days to go until adjournment of special session on June 11, things seem to be picking up at the Legislature.

Yesterday the House worked late into the evening passing a proposed operating budget, released on Wednesday, 53-35. The House also passed a revenue bill that would provide funding for K-12 and higher education by closing some tax preference with a vote of 52-40.

Today both the Senate Majority Coalition Caucus and the Senate Democrat Caucus are expected to meet. It is reported that the Senate will return to Olympia tomorrow morning for floor action. Though it is unclear exactly what is planned.

Read more here: http://www.theolympian.com/2013/06/07/v-print/2575306/house-approves-revised-state-budget.html#storylink=cpy

House and Senate Democrats Release Proposed Operating Budget

Posted on June 5, 2013 by jgarver

Today the Washington State House, in partnership with the Senate Democrats, released a proposed biennial operating budget for the 2013-15 biennium.

Overall the proposed budget addresses the state’s $2.6 billion budget problem through policy enhancements, fund transfers, reduced spending, and increased resources.

The House proposal makes $1.5 billion in additional policy enhancements, the majority of which are in K-12 ($955 million). Among the investments made include:

$839 million to K-12 to fund increased materials, supplies, and operating costs; reduce early elementary class size (K-3); fund pupil transportation and expand all-day kindergarten
$146 million for home care worker compensation
$68 million for postsecondary education financial aid
$30 million for Early Childhood Education Assistance Program enhancements
$25 million for debt service on anticipated new capital projects
$24 million for state parks

These enhancements as well as the other parts of the budget are funded through a combination of savings, reduced spending, and increased resources.

$509 million in fund transfers
$1.6 billion in reduced spending
$339 billion in increased revenue

The House proposal leaves $606 million in projected total reserves.

Higher Education

The House proposal makes an investment in higher education that moves in the right direction. The budget provides $11 million in targeted funding for state instructional support.

The proposed budget assumes a 3% tuition increase for all of the four-year public institutions and the community and technical colleges.

The budget includes language requiring the Office of Financial Management to convent a joint committee to propose an incentive funding model for the public baccalaureate institutions.

Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant.

The House proposal continues the suspension of some small state financial aid programs from 2011-13 including suspension of Washington Scholars, WAVE, Health Professional Scholarships, and Future Teacher Scholarships.

Evergreen

For Evergreen the House’s proposed budget would allow tuition for undergraduate residents to increase by 3% per year of the biennium. The College may increase tuition beyond this level but would be required to invest in institutional financial aid.

In addition the budget appropriates $1.157 million for the purpose of instructional support. These funds include $405,000 in additional funds to support this effort and $752,000 that would come to the College if the proposed revenue budget (HB 2034) is passed. If the revenue package is not passed by the Legislature, then the $752,000 would be met within existing college funds. Evergreen is required to provide a report by September 1, 2014 that provides the specific details on how these amounts were spent in the preceding fiscal year and any process changes or best-practices implemented in the College.

Finally, the Washington State Institute for Public Policy, a public service center of Evergreen, is funded to support a comprehensive study of the financial incentives promoting distributed generation in Washington and to provide primary staff support for a K-12 funding task force.

Next Steps

The House is expected to move the proposed biennial operating budget out of committee this afternoon followed by a vote on the floor on either Thursday or Friday.

Action Picks Up on The Hill

Posted on June 5, 2013 by jgarver

Today the Washington Legislature went from zero to sixty in terms of action.

After nearly three weeks of little action- though budget negotiations continued – the House Democrats and Senate Democrats released a proposed operating budget and a smaller revenue package.

The release of a proposed budget comes on the heels of action earlier this week and late last week regarding the estate tax. Late last week the House Finance Committee moved legislation to fix a loophole in the state’s estate tax that was caused by a Supreme Court decision earlier this year. The Senate Ways & Means committee voted on its response to the court decision earlier this week.

Yesterday Governor Inslee held a press conference urging movement towards a final budget. With one week left the Governor expressed his increasing concern, especially given the differences between the Senate and the House to address the estate tax, about the lack of progress. He stated again and again that seven days remain to get the job done.

Today the House and Senate Democrats released a proposed operating budget and revenue package at noon followed by a public hearing on the revenue package and an executive session on the proposed budget.

It is expected that the House will convene on the floor tomorrow and Friday to pass the proposed budget and revenue package as well as some additional policy bills. The Senate is also expected to convene to consider its proposed estate tax legislation and a bill to increase penalties for DUIs.

Washington Special Session Nears Final Week

Posted on June 3, 2013 by jgarver

Today marks the 22nd day of the 30-day special session. The session is scheduled to end a week from tomorrow.

While budget negotiators continue to meet, there is no sign of a final budget to date. Technically the Legislature is in violation of state law entering June without a budget.

The primary area of disagreement continues to be whether or not new revenue is needed to balance the budget.

If a budget agreement doesn’t emerge this week a second special session might be necessary because of the time it takes to pass a budget. With the chances of a second special session increasing, so have discussions around next steps and impacts about what happens if state government enters a new fiscal year (July 1) without a budget.

In the meantime, lawmakers are teeing up some other issues for a likely floor vote including an omnibus bill to address impaired driving.

Office of Governmental Relations

Monthly Archives: June 2013