Gregoire Names New Chief of Staff

Earlier this week Governor Gregoire named Mary Loesch as Chief of Staff.

Loesch joined the Governor’s staff as General Counsel in 2009 and later added the role of Director of External Affairs to his work. Prior to joining Gregoire’s team Loesch was Director of Intergovernmental Affairs for the Swinomish Indian Tribe and worked in private practice with three firms.

Loesch replaces Jay Manning who announced his resignation as Chief of Staff last month.

Revenue Collections Dip in June

This week the latest revenue collections report was issued and shows state revenues dropped another $22.3 million since the June economic and revenue forecast.

The drop in state revenues is a combination of unanticipated tax refunds ($4.1 million) and a drop in economy-related activities ($18.2 million).

Despite the decline in revenue, the state remains in the black at this time for the remainder of the 2011-13 biennium.

Three Ballot Measures Likely on November Ballot

Last Friday marked the deadline for initiative campaigns to submit signatures for the November ballot.

Three campaigns turned in more than 1 million signatures, nearly assuring that they will be placed on the ballot this fall, including measures to privatize the sale of liquor, restrict highway tolls, and reinstate a training program for home health care workers.

Initiative 1183 would close state liquor stores and sell their assets, including the liquor-distribution center. The initiative would allow private stores to sell liquor and create licensing fees for sale and distribution of liquor based on sales and revenues.

Initiative 1125 would require the Legislature, not the state Transportation Commission, to set tolls, and mandate that a toll on a particular road or bridge be used only for construction, operation or maintenance of that project.

Initiative 1163 would require background checks and training for long-term care workers and providers. 

A fourth campaign, to provide for better conditions for egg-laying hens, did not submit signatures. Earlier in the week supporters of Initiative 1130 were expected to be among the campaigns to submit signatures by the deadline. Initiative 1130 would prohibit keeping egg-laying hens in stacked cages or in cages that prevent them from moving freely and fully extending their wings. The initiative would also bar the sale of eggs from businesses that did not comply with this law.  The law would take effect January 1, 2018.

However in a turn of events late last week, the sponsors of the Washington initiative campaign dropped their effort after reaching a national deal with commercial egg producers to pursue federal legislation.

Four Initiatives Bound for November Ballot

This week the November ballot took shape. At least four intiatives are likely to meet the July 8 signature deadline for ballot measures.

Initiative 1130 would prohibit keeping egg-laying hens in stacked cages or in cages that prevent them from moving freely and fully extending their wings. The initiative would also bar the sale of eggs from businesses that did not comply with this law.  The law would take effect January 1, 2018.

Initiative 1183 would close state liquor stores and sell their assets, including the liquor-distribution center. The initiative would allow private stores to sell liquor and create licensing fees for sale and distribution of liquor based on sales and revenues.

Initiative 1125 would require the Legislature, not the state Transportation Commission, to set tolls, and mandate that a toll on a particular road or bridge be used only for construction, operation or maintenance of that project.

Initiative 1163 would require background checks and training for long-term care workers and providers. 

Initiative supporters must turn in valid signatures for at least 241,153 registered voters to the Secretary of State’s Office by July 8 to qualify for the November 2010 ballot.

2012 Governors Race Becomes Two Person Race

Over the weekend, current Washington State Auditor Brian Sonntag formerly declared that he would not seek the Governorship in 2012.

In an email statement, Sonntag stated,  “I truly appreciate all the encouragement from a variety of people and organizations about a possible candidacy for Governor.  This support has caused me to give this serious consideration.  However, I will not be a candidate for Governor in 2012.” 

The decision by Sonntag not to run likely makes the race for Governor in 2012 a two-person race.

In June both  current U.S. Representative Jay Inslee (D-WA) and Washingotn’s Attorney General Rob McKenna launched their bids for Washington Governor.

Though other names have not confirmed one way or the other- such as Bill Bryant, Seattle Port Commissioner; and Aaron Reardon, Snohomish County Executive -it appears that the candidates for Governor have been declared.

2012 State Races Shaping Up

This past week the 2012 race for Washington Governor filled in a bit more and candidates lined up to consider following in Secretary of State Sam Reed’s shoes.

Last week current U.S. Representative Jay Inslee (D-WA) launched his bid for Washington Governor. This follows on the announcement earlier this month by Washington’s Attorney General Rob McKenna that he would seek the Governorship. 

Other names continue to be rumored as potential candidates- such as Bill Bryant, Seattle Port Commissioner; Aaron Reardon, Snohomish County Executive;  and Brian Sonntag, Washington State Auditor- though no one else has officially declared.

Also last week current Secretary of State Sam Reed announced that he would retire from his positon after a 35-year run in public office. This announcement opened the door for potential candidates.

State Senator Jim Kastama (D-Puyallup) and Kim Wyman (Thurston County Auditor – R) both formerly announced that they would seek the position of Secretary of State in 2012.

Other potential candidates rumored to be interested in the Secretary of State role include State Representative Zack Hudgins (D-Tukwila), Kathleen Drew (Policy Advisor to Governor Gregoire), State Senator Craig Pridemore (D-Vancouver), and former State Senator Eric Oemig (D-Kirkland).

Governor Signs Biennial Budget

Earlier this week Governor Gregoire signed into law the 2011-13 biennial operating and capital budgets.

Gregoire vetoed several sections of the operating budget passed by the Legislature at the end of May because of concerns with policy or technical issues. In addition she vetoed a handful of items in the capital budget, none of which impact Evergreen.

Included among the vetoes to the operating budget were:

  • A feasibility study on the implications of mandating direct payroll deposit for state employees based on prior research by the Office of Financial Management that raised concerns among stakeholders and limited cost savings given that the majority of state employees voluntarily use direct deposit.
  • The requirement that all state agencies, including institutions of higher education, complete a Washington State Quality Award or Baldridge full assessment with a schedule for completion of this assessment every three years and incorporation of this assessment into agency’s strategic plans. A veto was issued based on the unprecedented level of 2011-13 budget reductions and the existence of the the Government Management and Accountability Performance (GMAP) program which is more-cost effective.
  • The creation of the Agency Reallocation and Realignment Commission (ARROW) with responsibilities for examining current state operations and organization and making proposals to reduce expenditures and eliminate duplication and overlapping services. A veto was issued based on the existence of current mechanisms to perform many of the same responsibilities without the additional cost.
  • A proviso that directs Evergreen’s Washington State Institute for Public Policy to study the costs and benefits to state and local governments and the citizens of Washington from implementation of the state’s policies on “controlled substances”. A veto was issued based on the policy that controlled substances are under federal law and it would not be in the best interest of the state to spend funds on a study that cannot address the fundamental issues in this policy area.

The Governor also signed into law legislation requiring reductions in compensation related expenditures (SB 5860) and legislation that makes several changes to higher education retirement plans (HB 1981).

June Forecast Down

Yesterday the Governor signed the 2011-13 biennial budget which left $730 million in total reserves for the upcoming biennium. As a result of today’s revenue forecast, the total reserves have been reduced to $163.3 million for the next two years.

The June economic and revenue forecast shows a decline of approximately $570 million in revenue for the 2011-13 biennium. In addition the forecast showed a drop of $84 million in revenue for the current biennium.

State Economist, Dr. Arun Raha, echoed the comments he made earlier this month when the economic review was released, suggesting that while the economy is improving it is doing so at a slower pace.

Raha cited sustained high gas prices and disruptions to the manufacturing supply chain  due to power shortages in Japan as the culprits.  Despite these hiccups the recovery is continuing and may even pick up momentum in the second half of the year as oil prices stabilize and Japan starts to rebuild.

No Third Term for Governor Gregoire

Earlier this week Governor Gregoire announced that she would not seek re-election to a third term as the Governor of Washington.

In a press release, Gregoire highlighted her decades in public service and gave no set plans after leaving office in 2012.  In the meantime she plans on focusing on the economy in the next 18 months.

Who will become the next governor of Washington remains to be determined. Last week Washington’s Attorney General Rob McKenna announced that he will seek the Governorship. Though he has not declared, it is expected that current. U.S. Representative for Washington Jay Inslee will also put his hat in the ring to run.

Other names that are floating around but have not declared include Bill Bryant, Seattle Port Commissioner; Aaron Reardon, Snohomish County Executive; Dow Constantine, King County Executive; and Brian Sonntag, Washington State Auditor.