Second Special Session Begins with a Boom

Posted on June 17, 2013 by jgarver

After weeks of non-action on The Hill, the Washington Legislature held a marathon session last Thursday to pass two major pieces of legislation. This is considerable movement forward given that no bills were passed and sent to the Governor during the first special session.

In the early hours of Friday morning Governor Inslee signed into law two pieces of legislation. The first bill fully restores the estate tax, responding to the recent Bracken decision by the courts, and devotes the funds to education. The passage of this bill prevented the Washington Department of Revenue from issuing several checks to taxpayers in the next budget period because of the court ruling that found married couples using a certain kind of investment strategy should not have been on the hook for the tax. The bill does make this change to taxes retroactive which is likely to draw a legal challenge.

The passage of the estate tax legislation was successful in the Senate only because the House agreed to approve legislation that would deal with how the state handles environmental clean-up funds.

So what is next.

No further action took place on Friday. Over the weekend rank-and-file members for both chambers were sent back to district while budget negotiators met. Both chambers are scheduled for floor action on Monday, but the House is not asking members to return until Tuesday.

On June 18 the Economic and Revenue Forecast Council will release its quarterly revenue forecast. In addition, the caseload forecast will also be issued. Speculation suggests that both forecasts will provide lawmakers with good news to close out the budget negotiations for the next biennium.

Budget negotiations continue. Though no breakthrough occurred over the weekend the progress made late last week lends itself to some optimism that the Legislature will complete its work prior to July 1. The major difference between the Senate and the House continues to be the Senate’s opposition to new taxes and the Houses’ concern about the policy bills put forth by the Senate in exchange for a revenue and budget deal.

Throughout the regular session and the first special session, the Senate has moved forward a number of policy bills in exchange for moving forward some revenue in a final budget. Last Thursday saw the first breakthrough in this area with the passage of the estate tax bill, which only came after the passage of an environmental-cleanup fund policy bill.

In addition the Senate also passed a wide-ranging education bill on Thursday that is now being considered by the House. The education bill along with a workers’ compensation reform bill are still in the mix, but two other major policy bills – state expenditure limitations on non-education areas of the budget and legislation that would grant principals the option to reject teachers who are appointed to their schools – appear to be off the table as the process moves forward. The Senate is still working to move forward the workers compensation and education bills in exchange for additional revenue around out-of-state shoppers and/or restoration of a tax on phone and other communications companies.

If the Legislature is unable to pass a budget by July 1, much of state government would likely have to shut down. The heads of state agencies have until 5:00 p.m. today to brings lists to the Governor identifying the services and staff that would be legally allowed to continue operating int he event of a partial government shutdown.

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

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.

Washington Senate Committee Moves Higher Education Legislation

Posted on May 31, 2013 by jgarver

Today the Washington Senate Ways & Means Committee took action on two higher education bills.

Senate Bill 5941 would reduce tuition by 3% for undergraduate resident students for the 2013-15 biennium at the public baccalaureate institutions and community and technical colleges. Beginning in 2015-16 through 2018-19 the public baccalaureates and the community and technical colleges could not raise resident, undergraduate tuition cannot exceed inflation.

The bill also allows for the following exception if SB 5942 passes. If the Legislature does not provide sufficient funding to meet baseline funding levels then the institutions can increase resident undergraduate tuition for the following academic year necessary to achieve the baseline funding levels.

Senate Bill 5942 would create a baseline level of funding beginning in 2014 that is equal to the maintenance level appropriations in the 2013-15 budget expressed as a per-resident student rate based on a three-year average of the number of actual FTE enrolled resident students. The per-resident student is also required to increase each fiscal year by the rate of inflation.

Also in 2014 any funds available after meeting the baseline levels or increases to higher education would be required to be distributed based on performance to institutions. The funds would be distributed on a proportional basis and for the public four-years based on a three-year average performance on five metrics.

Average time to degree for undergraduate students
Number of undergraduate high-demand degrees produced
Freshman retention
Low-income populations
Space utilization

Finally the bill would establish a work group to review the per-resident student rates utilized to establish baseline funding and make recommendations for achieving equal funding for similar institutions by the 2017-19 biennium.

Three amendments were offered to SB 5942, though none of the amendments were passed.

Would strike the entire bill and replace it with language to direct the Office of Financial Management to convene a technical incentive funding model task force to design an incentive funding model to provide new incentive funding to four-year institutions of higher education that demonstrate improvement on existing performance measures and to control resident undergraduate tuition growth.
Would make students who are enrolled or accepted for enrollment for at least three-quarter credits or the equivalent semester hours, in a qualifying higher education program, eligible for the State Need Grant program.
Would require the State Auditor to conduct a comprehensive financial audit of UW and WSU.

Both bills were moved out of committee and to the Senate floor for further consideration.

Halfway Through Special Session

Posted on May 29, 2013 by jgarver

Today marks the fifteenth day of the 30-day special session. This week the Capitol experienced an uptick in action.

This morning the House Finance Committee met to move legislation to make changes to the state’s estate tax for married couples.

House Bill 2064 is in response to the Bracken Decision — a state Supreme Court ruling that allows a spouse to transfer assets to a surviving spouse without paying taxes if they’re using a certain type of trust, known as a Qualified Terminable Interest Property trust. As a result of this ruling the state can no longer collect estate taxes on the trust when the surviving spouse dies. If passed the legislation would make changes to the estate tax law to prevent such refunds in the future

It is estimated that the decision could cost the state $160 million dollars over the next two years. The Washington Department of Revenue will begin issuing tax refund checks in June worth about $40 million dollars because of the decision.

It is possible that the Washington House will take up the bill on the floor tomorrow.

In the Senate legislation is expected to be heard before the Ways & Means Committee on Friday regarding the estate tax. Also on Friday the Senate Ways & Means Committee will hold a hearing on two higher education related bills.

Senate Bill 5936 would create a performance funding framework for higher education and Senate Bill 5937 would decrease tuition for resident undergraduate students by 3% for the 2013-15 fiscal biennium and limit future growth of tuition for this category of students to inflation.

Special Session Enters Second Week

Posted on May 21, 2013 by jgarver

The Washington Legislature entered the second week of a 30-day special session that began on May 13. The special session is approximately a third over and a final budget compromise looks to still be a ways off.

Since special session convened budget writers from both chambers have met with Governor Inslee to reach common budget assumptions and discuss policy legislation for the session.

Special session is scheduled to adjourn on June 12.

In the meantime, Governor Inslee met today’s deadline to sign or veto all the bills passed by the Legislature before it adjourned its regular session last month.

Inslee has been steadily signing bills and made his first major veto on Monday, of $81 million in the transportation budget for the controversial bridge over the Columbia River – planning money he says isn’t needed unless the Legislature actually approves enough money to build the new bridge.

Washington Legislature Convenes for Special Session

Posted on May 14, 2013 by jgarver

This week the Washington State Legislature convened for a 30-day special session.

Since the Legislature adjourned two weeks ago little progress has been made towards a final budget. Budget writers for each chamber did meet a few times since Sine Die, but no deal was reached. The differences between the three-corners (i.e. Governor, Senate and House) remain vast as legislators begin this next phase in the process.

Yesterday, both the Senate and the House convened to caucus. The Governor and the Senate Majority Coalition each held press conferences which echoed what has been in the atmosphere since Sine Die, no significant progress has been made; Though both shared their intention to work out a final budget within the 30-day special session.

Not much is expected this week or even next week. No floor votes are scheduled this week, but a few committees are meeting.

One bit of news is a revised special session agenda for the Governor. Governor Inslee announced a narrower focus for the next 30-days than the wide open one he declared at the end of the regular session. The top three priorities for the Governor include: a budget compromise, a new transportation revenue package, and tougher drunk driving legislation. The Governor still hopes that action will be taken on the DREAM Act and the Reproductive Parity Act.

The 30-day special session is set to end on June 12. If a budget compromise is not reached another special session will be called.

Regular Session Ends; Special Session Scheduled

Posted on April 29, 2013 by jgarver

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

Posted on April 25, 2013 by jgarver

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.

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