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Regular Session Ends; Special Session Scheduled

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The 105-day regular legislative session came to a slow end over the weekend. The Senate and House adjourned in the early evening on Sunday.

Both chambers spent the last week and the weekend moving through a series of bills deemed necessary to implement the budget -including a revenue package in the House – as well as concurrences and confirmations of gubernatorial appointments in the Senate.

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.

Legislators will not be back in town until May 13, when Governor Inslee has announced for a 30-day special session to begin. 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. Usually there is agreement among the Governor’s Office and the four caucuses on what the agenda for the special session will be, but as of close of business yesterday this did not appear to be the case. 

Though Governor Inslee is hopeful that between now and May 13 budget negotiators, who will work in Olympia during this break, will have a deal come mid-May. In the Governor’s eyes the agenda would include:

  • An operating budget that makes a substantial downpayment on McCleary but not on the backs of those that are less fortunate;
  • A transportation plan that preserves funding for existing infrastructure projects and funds new projects including the new bridge across the Columbia River; and
  • Important education policy measures to ensure that new education funding will achieve results.

Governor Inslee also referenced a handful of non-budget issues that he would like to see end up on his desk at the end of the special session. Among these issues is legislation on stiffer penalties for repeat DUI offenses, gun reform, the reproductive parity act, and the state DREAM Act.

In his press conference on Sunday, Governor Inslee provided insight into the difficult tasks that lie ahead noting that lawmakers were “…aren’t miles apart. At the moment, they’re light years apart.”

Washington House Passes Revenue Package

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Late yesterday the Washington House passed a revenue package over to the Senate with a vote of 50-47.

Five Democrats joined Republicans voting against a $900 million revenue package.

The package which would raise funds for education over the next two years sets up the House’s position in budget negotiations which are expected to continue through May.

Smaller Revenue Package Passes House Committee

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This afternoon the Washington House Finance voted along party lines to approve a $900 million tax package.

The package, originally slated at $1.16 million, was scaled back. The package moving forward no longer extends the temporary tax surcharge on beer that was adopted in 2010. In addition insurance agent services, janitorial services, and stevedoring services (shipping containers) were removed from the list of repealed tax exemptions.

The largest component of the revenue package that is now headed to House Rules is HB 2038  which would permanently extend a B&O tax surcharge that would otherwise expire in June.  In addition the package either levies taxes not in effect today or would not still be in effect after June including the elimination of tax breaks for bottled water, travel agents, and high-tech research and development. As passed the bill would bar a referendum but not an initiative challenge.

Several amendments were proposed by the minority to remove additional elements of the revenue package, but were not passed. It is expected that some of these amendmetns would likely return when the bill goes to the floor later this week.

Last Major Deadline Passes, Now Its Budget Time

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On Wednesday the Legislature passed the last major deadline prior to Sine Die. As of 5:00 p.m. on April 17 all bills must have passed the opposite chamber in which they were introduced. The exception are those bills that are deemed NTIB.

Both the Senate and the House worked steadily this week towards this deadline moving hundreds of bills through the process. Some of these bills will now go back to their chamber of origin for concurrence if the bills were amended in the opposite chamber. Other bills, those that were not amended, will now be delivered to the Governor for his consideration.

This includes a handful of higher education related bills.

Bills for Concurrence

HB 1645 – Adds one public member to the Higher Education Facilities Authority.

HB 1736 –Directs the Office of Financial Management to work with institutions of higher education, the Department of Enterprise Services, the Department of Commerce, and the Department of Transportation to review the reporting requirements of institutions of higher education with the purpose of enhancing the efficiency and effectiveness of their operations, and report recommendations by December 1, 2013. Permits institutions of higher education and state higher education agencies to use or accept electronic signatures, as defined, for any human resource, benefits, or payroll processes that require a signature. Permits the Washington Student Achievement Council to negotiate and enter into interstate reciprocity agreements with other state or multistate entities regarding the operations of degree-granting institutions in the state. Permits the Washington Student Achievement Council to enter into certain agreements for the purposes of ensuring consistent.

Bills Delivered to the Governor

SB 5180 –Creates a 29-member legislative task force charged with improving access to higher education for students with disabilities. Requires the task force to make recommendations to the Legislature each December from 2013 to 2015.

SB 5195 -Allows a nonprofit institution recognized by Washington to be eligible to participate in the State Need Grant program, effective August 1, 2013.

SB 5343 -Requires institutions of higher education to provide make-up classes, exams, or other make-up events to National Guard members or other military reservists called to active duty or training for 30 days or less without prejudice to the final course grade or evaluation.

SB 5559 -Authorizes Central Washington University, The Evergreen State College, and Western Washington University to offer Educational Specialist degree.

HB 1109 – Requires institutions of higher education that offer an early course registration period for any segment of the student population to offer early registration to students who are eligible veterans or National Guard members.

Next Steps
The 2013 regular legislative session is scheduled to end at midnight on April 28. Between now and then both chambers will be working to move bills through to the Governors desk. In addition, the focus will increase around budget negotiations as the Senate, House and Governor work towards a final biennial operating and capital budget.

Day 90 of 105 Day Regular Session

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With only 15 days to go in the 2013 regular legislative session all attention is directed towards two primary objectives. First pass legislation that is still active in the process before cut-off on Wednesday. Second, finalize an agreed upon conference budget between the Washington Senate and House.

Legislation

For the majority of bills still “alive” this session this Wednesday, April 17  at 5:00 p.m. marks the final day of consideration for bills that started in the opposite chamber. In other words, House bills must pass the full Senate, and vice versa. The exceptions are NTIB (Necessary to Implement the Budget) bills and policy bills that have been labeled as “go-home” bills.

Budget

Late last week, the Washington House passed a proposed 2013-15 biennial operating budget, primarily along party lines.  One week prior, the Washington Senate passed its proposed biennial operating budget with a vote of 31-18 that included members from both parties.

The Senate’s proposed budget makes some enhancements, primarily in education. The enhancements as well as the other parts of the budget are funded through a combination of savings, transfers, and the redirection of funds. In addition, the proposal balances the budget and leaves a reserve. Finally the budget assumes $61 million in new revenues. This increase includes a combination of $11 million in legislation reducing revenue and $72 million in legislation/budget actions increasing revenue.

The House’s proposal  addresses the state’s $3.4 billion budget problem through policy enhancements, fund transfers, reduced spending, and increased resources. The House proposal makes $2 billion in additional policy enhancements, the majority of which are in K-12 ($1.4 billion). These enhancements as well as the other parts of the budget are funded through a combination of savings, reduced spending, and increased resources. Finally, the House proposal leaves $337 million in projected total reserves.

The budgets also differ in what they fund for higher education, though both budgets provide roughly the same level of investment – $100 million (this includes funding for the two- and four-year sectors and financial aid).

The Senate proposal assumes no increases in resident undergraduate tuition rates for the 2013-15 biennium. The budget provides $77.8 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 including the College Bound Scholarship program and the State Need Grant. The investments in the Senate proposal are funded in part ($59 million) with dollars that would be generated from a 20% surcharge on international students who attend the two- and four-year public institutions.

The House proposal  provides $11 million in targeted funding for state instructional support and $12 million to support biofuels and clean energy programs. The proposed budget assumes a  3% tuition increase for The Evergreen State College, Eastern Washington University, Central Washington University and the Community and Technical Colleges; and a 5% tuition increase for Western Washington University, Washington State University, and the University of Washington. Finally the budget makes an investment in financial aid including the College Bound Scholarship program and the State Need Grant.

Next Steps

The primary focus over the next two days will be to move bills prior to the Wednesday cut-off. Once this deadline passes all attention will be focused on the development of a biennial conference budget. And within this discussion whether or not the Washington Legislature will go into special session to complete their work.

Obama Releases FY14 Budget

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This week President Obama released a proposed annual budget for FY2014.

The budget requests $71.2 billion from Congress in discretionary funding for the U.S. Department of Education. This is an increase of 4.5% ($3.1 billion) from the FY13 pre-sequester level.

The primary investment in the President’s budget focuses on expanding high-quality early learning opportuntiies to all four year-olds from low- and moderate-income familes. Also known as the Preschool for All proposal, this program would invest $75 billion over 10 years in seperate, fully offset mandatory funding to create new partnerships with states and provide high-quality preschool to more communities. The proposal also provides $750 milion in discretionary funding to helpe states strengthen their early learning systems and prepare to expand access to high-quality preschool.

This program is part of an overall proposal targeted to strengthen the education pipeline from cradle to career. Other componenents of the President’s proposal include:

  • Furthering the K-12 reform agenda by investing in school turnaround efforts, STEM programs, and teachers and leaders.
  • Redesigning the high school experience and increasing the career readiness of high school students and adult learners.
  • Making college more affordable and improving quality by incentivizing states and institutions to do their part in controlling costs and providing value.
  • Keeping schools and communities safe through an Administration-wide plan to protect children and neighborhoods from gun violence.
  • Providing ladders of opportunity to the middle-class through a robust Promise Neighborhoods program and investments in low-income communities.

Washington House Releases Biennial Budget, Holds Line on Higher Education

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Today the Washington State House released a proposed biennial operating budget for the 2013-15 biennium.

In a press conference Representative Ross Hunter, Chair of the House Appropriations Committee highlighted the investments in education and critical services to Washington citizens proposed in the House budget.

Overall the proposed budget addresses the state’s $3.4 billion budget problem through policy enhancements, fund transfers, reduced spending, and increased resources.

The House proposal makes $2 billion in additional policy enhancements, the majority of which are in K-12 ($1.4 billion). Among the investments made include:

  • $986 million to K-12 to fund increased materials, supplies, and operating costs; reduce early elementary class size (K-3); fund pupil transportation and instructional hours.
  • $87 million for postsecondary education financial aid
  • $41 million for Early Childhood Education Assistance Program enhancements
  • $146 million for home care worker compensation
  • $25 million for debt service on anticipated new capital projects

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

  • $757 million in fund transfers including $575 million from the Budget Stabilization Account
  • $1.3 billion in reduced spending
  • $1.3 billion in increased resources

The House proposal leaves $337 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 and $12 million to support biofuels and clean energy programs.

The proposed budget assumes a  3% tuition increase for The Evergreen State College, Eastern Washington University, Central Washington University and the Community and Technical Colleges; and a 5% tuition increase for Western Washington University, Washington State University, and the University of Washington.

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 $752,000 from the proposed maintenance level appropriated to the College and $405,000 in additional funds to support this effort. Evergreen is required to provide a report by September 1, 2014 that provides the specific details on how these amoutnes 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.

Next Steps

The House is scheduled to hold an executive session on the proposed biennial operating budget on Thursday afternoon followed by a vote on the floor on either Friday or Saturday.

Capital Budgets Galore

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Today the House released its proposed biennial 2013-15 capital budget and the Senate held a pubic hearing on its biennial proposal.

The Washington House’s proposed capital budget provides funding for a number of projects across higher education. This includes funding for two projects at Evergreen – the renovation of the Science Lab 1 Basement and the Science Lab 2 second floor.

In addition the budget includes funding for minor works preservation and preventative maintenance. Though the  House’s budget does provide some funding for minor works preservation it does not fully fund the College’s request.

The proposed budget does not fund the design phase of the Lecture Hall Renovation, the predesign for the renovation of Seminar I, and the acquisition of land and design for the Tacoma Campus.

Next Steps

The Senate Ways & Means Committee is scheduled to hold an executive session on their proposal on Thursday. The House expected to do the same on their proposal on Friday morning.

Senate Releases Biennial Capital Budget

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This afternoon, with little fanfare, the Washington Senate released a proposed biennial capital budget.

The Senate’s proposal provides funding for a small number of projects across higher education. This includes funding for two projects at Evergreen – the renovation of the Science Lab 1 Basement and the Science Lab 2 second floor.

In addition the budget includes funding for minor works preservation and preventative maintenance. Though the  Senator’s budget does provide some funding for minor works preservation it does not fully fund the College’s request. The Senate’s proposal is approximately $1 million less than the budget proposed by Governor Gregoire in December.

The proposed budget does not fund the design phase of the Lecture Hall Renovation, the predesign for the renovation of Seminar I, and the acquisition of land and design for the Tacoma Campus.

The proposed capital budget is scheduled for a public hearing tomorrow in Senate Ways & Means.

Washington Senate Releases Budget, Makes Some Investment in Higher Education

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This week  the Washington State Senate released and passed a proposed biennial operating budget for the 2013-15 biennium.

In a press conference Senator Andy Hill, Chair of the Senate Ways & Means Committee framed the budget using four numbers.

  • Zero: The deficit in the budget for the supplemental session
  • Four: The number of years the budget is balanced
  • Twenty-One:  The budget builds an education system for the 21st century
  • One-Hundred and Five: The plan to finish this work within the regular session of the Legislature.

Overall the proposed budget makes some enhancements, primarily in education; balances the budget; leaves a reserve; makes some savings; and redirects funds from the capital budget and other revenue.

The Senate proposal makes three primary enhancements in the area of education:

  • Provides funds for over $1 billion for K-12 education by continuing the phase-in of HB 2776 requirements and enhancing other basic education programs;
  • Makes over $100 million in policy level enhancements in state funding for higher education;
  • Expands preschool through the Department of Early Learning

These enhancements as well as the other parts of the budget are funded through a combination of savings, transfers, and the redirection of funds.

  • $2 billion in spending controls and savings: (1) $321 million by re-purposing Initiative 732, (2) $303 million through federal Medicaid expansion, (3) $238 million by temporarily extending the hospital safety net; (4) $151 million in administrative efficiencies (including higher education); (5) $127 million in savings by aligning health benefit eligibility for state, higher education and K-12 employees with the federal Affordable Care Act; (6) $113 million in changes to the Housing & Essential Needs (HEN) program and support for the Aged, Blind and Disabled (ABD); and (7) $183 million in caseload and policy changes affect TANF and Working Connections Child Care.
  • $179 million in transfers: The largest fund transfers include $42 million from the Life Science Discovery Fund, $20 million from the State Treasurer’s Service, and $15 million from the Public Works Assistance Account.
  • $262 million in redirection of capital budget and other revenue funds

Finally the budget assumes $61 million in new revenues. This increase includes a combination of $11 million in legislation reducing revenue and $72 million in legislation/budget actions increasing revenue.

Higher Education

The Senate proposal makes an investment in higher education that moves in the right direction. The proposed budget assumes no increases in resident undergraduate tuition rates for the 2013-15 biennium. The budget provides $77.8 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 including the College Bound Scholarship program and the State Need Grant.

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

The investments in the Senate proposal are funded in part ($59 million) 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 $1.515 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. Evergreen, along with the other public baccalaureate institutions, is reduced by $356,000 to meet additional administrative efficiencies.

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.

Next Steps

On Friday the Washington Senate passed the proposed biennial operating budget with a vote of 30-18. The vote was a mix of Democrats and Republicans. The proposal now goes to the House for consideration.

The House is expected to release their operating budget sometime this week.

Both chambers have yet to release a 2013-15 biennial capital budget.