Governor’s Budget Will Roll Out This Week

Governor Gregorie will roll out her 2011-13 biennial budget this week.

The 2011-13 biennial budget will be released on Wednesday, December 15. Prior to the release of the budget, the Governor will announce proposed policy changes to healthcare and pension plans sometime today (December 13) and efforts to streamline government and/or fund current services and programs differently in the future on Tuesday (December 14).

The Governor will not likely release her revised 2009-11 budget until Monday December 20.  In addition, it is expected that she will announce additional policy initiative in January.

Washington Legislature Adjourns Special Session

The Washington Legislature adjourned a one-day special session late this afternoon.

The one-day session reduced the estimated $1.2 billion shortfall in the current biennium by aprpoximately $700 million. 

The legislation passed today to achieve this savings – a combination of reductions, fund transfers, and some revenue changes – will be delivered to the Governor for her signature this week.  

The 2011 session is scheduled to begin Jan. 11 and end on April 24, during which time lawmakers will need to implement further reductions to balance the remaining budget shortfall in the current fiscal year and write a budget for 2011-13. That $32 billion budget is also facing a revenue shortfall, currently estimated at around $5 billion.

Washington Senate Takes Action on Budget Legislation During Special Session

This afternoon the Washington Senate passed legislation to reduce the state’s budget shortfall in the current fiscal year.  The  passage of this legislation will reduce the state’s budget shortfall by approximately $590 million dollars.

The Senate passed three bills – Senate Bill 6892 (38-0), Senate Bill 6893 (28-11), and HB 3225 (30-9).

  • Senate Bill 6892: Allows the Department of Revenue to waive penalties for companies that owe back taxes and pay up promptly. The measure is estimated to raise over $44 million over six months. 
  • Senate Bill 6893: Suspends child support pass-through payments to families receiving Temporary Assistance for Needy Families benefits.
  • House Bill 3225: Reductions to the 2009-2011 operating budget.

Senate Bills 6892 and 6893 now go to the House for action. House Bill 3225 will go to the Governor for her signature.

Full Week of Committee Hearings for the Washington House

The latter half of last week was dominated by committee hearings in the Washington House. Several of the committees heard updates and outlooks regarding the budget and issues facing higher education.

On Thursday three House committees met: (1) House Education Appropriations, (2) House Ways & Means, and (3) House Capital Budget. On Friday the House Higher Education met.

The House Education Appropriations Committee heard several presentations including a 2011-13 budget outlook and a report on the Joint Legislative and Audit Review Committee’s (JLARC) Study on Transparency in Higher Education Data.

The House Ways & Means Committee received an outlook for the 2011-13 budget and an update on the collective bargaining for 2011-13. In addition, the Commission discussed solutions to the budget problem.

The House Capital Budget Committee heard updates from grant recipients of the Jobs Act for K-12 School Construction and Higher Education and K-12 Energy Efficiency Program. Representatives from The Evergreen State College – John Hurley, Vice President of Finance and Administration and Paul Smith, Director of Facilities – provided the Committee with information regarding the grants the College received under this program. Hurley and Smith were joined by representatives from the community colleges and K-12.

The Committee also received a preview of the capital budget for 201 1-13 session.

On Friday, the House Higher Education Committee met. The Committee received several major reports and updates. Among the reports and updates was the Study on Transparency in Higher Education Data and reports on dual credit, running start, and the industry skill panel.

Washington House Passes Budget Reductions

This afternoon the Washington House passed legislation to reduce the state’s budget shortfall in the current fiscal year.  House Bill 3225 passed with a vote of 86-6.

House Bill 3225 reduces the state’s budget shortfall by approximately $590 million dollars. It is the largest portion of a deal reached by both Chambers and the Governor this past week. The deal also includes fund shifts and additional revenue through tax compliance efforts.

The bill now goes to the Senate for action later today.

New Leadership for U.S. House Education Committee

The U.S. House of Representatives elected Rep. John Kline (R-MN) to chair the U.S. House Education and Labor Committee.

Rep. Kline has indictated that his priorities for the upcoming congressional session include:

  • Increasing oversight of education and workforce programs;
  • Reforming the nation’s education system to protect taxpayers, restore local control and empower parents;
  • Helping employers create new jobs; and
  • Improving training programs to get out-of-work Americans working again.

U.S. House Passes Year-Long Continuing Budget Resolution

This past week the U.S. House of Representatives passed a continuing resolution to extend the FY10 budget through FY11 and provide $5.7 billion to pay off the pending Pell Grant funding shortfall.

The Continuing Resolution maintains funding for programs in FY11 at the same levels as in FY10 with some exceptions. The Resolution reduces spending to some programs to pay for other spending priorities like the Pell Grant Program.

If passed by the U.S. Senate the Continuing Resolution would become effective when the current continuing resolution expires on December 18. The Resolution is necessary because Congress has not passed the twelve appropriations bills needed to pass a FY11 budget.

It is unclear, however, how the Senate will act. There has been some indication that current leadership would like to combine all appropriations bills into one an omnibus spending bill. Another option would be for the Senate to pass their own continuing resolution, which could last the entire FY11 similar to the House or opt for a shorter timeframe such as a few months.

U.S. House and Senate Take Action on DREAM Act

This past week the U.S. House of Representatives passed the Development, Relief, and Education for Alien Minors (DREAM) Act with a vote of 216-198. 

The DREAM Act authorizes the Secretary of Homeland Security to grant conditional nonimmigrant status to undocumented students who were brought to this country before the age of 16 and have been here at least 5 years as of the enactment date. They also must be under 30 years of age. After 10 years, participating individuals would be eligible to have their status adjusted from conditional nonimmigrant to legal permanent resident if they have received a degree from an institution of higher education, completed at least two years toward a bachelor’s (or higher) degree, or served at least two years in the military.

This upcoming week the U.S. Senate is expected to vote on the version of the DREAM Act passed by the House.  This past week the Senate introduced a different version of the DREAM Act but have tabled this version in order to vote on the House’s version.

The House’s version of the bill is a bit more conservative than the Senate version introduced earlier this month. Under the House bill, unauthorized residents could qualify for conditional nonimmigrant status if they:

  • Were less than 16 years of age when they entered the country,
  • Lived in the United States for at least five years prior to the bill’s enactment,
  • Are high school graduates or high school students who have been admitted to an institution of higher education or have a general education development (GED) certificate, and
  • Meet other requirements.

The initial conditional nonimmigrant status available under the bill would be valid for a period of five years after which individuals could apply for a single five-year extension. Individuals would be eligible for an extension if they had earned a degree from an institution of higher education, completed at least two years toward a bachelor’s (or higher) degree, or served at least two years in the military, and had met other standards. After completing the second five years, individuals who met the criteria for the five-year extension could have their status adjusted from conditional nonimmigrant to legal permanent resident (LPR) status. 

Washington House Democrats Announce Rest of Leadership Team

This past week the Washington House Democrats elected individuals to three leadership positions for the upcoming 2011-13 legislative session.

Rep. Eric Pettigrew was elected by the House Democratic Caucus as Caucus Chair. In addition, Rep. Jim Moeller was elected as Speaker Pro-Tem and Rep. Tami Green as Majority Floor Leader.

Pettigrew, Green, and Moeller join Rep. Chopp, Rep. Sullivan, and Rep. Van De Wege who were elected to leadership in November.

Budget Savings in Special Session Overestimated

Today the Governor’s Office revised the estimated savings expected from actions taken during the special session.

The latest estimates project a reduction in the current fiscal year shortfall of approximately $700 million, instead of the $790 million reported earlier this week.

In addition, it is estimated that the across-the-board cuts enacted by the Governor as part of the deal will generate approximately $110 million in savings, instead of the $200 million previously reported.