Tag Archives: Governor Gregoire

Higher Education Talks 2013 Session with Committees

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This week Washington’s four-year public institutions shared with legislators the impact of Governor Gregoire’s proposed budget on higher education and invited legislators to partner with the institutions in prioritizing higher education in policy and funding discussions.

On Tuesday the public baccalaureate institutions testified on Governor Gregoire’s proposed biennial budget for higher education.

Members of  the House Appropriations Committee heard appreciation from the institutions for the acknowledgment Gregoire gave to the dramatic reductions in state funding the public four-year institutions have experienced since the begining of the recession. In particular, the shift in the cost of education from the state to Washington students and families.

Institutions also expressed that the proposal challenges Washington’s public universities and college because the proposed funding levels are insufficient to meet the basic operating needs of the institutions and does not respond to institutional requests for enhancements to sustain current performance and build capacity for access.

The public baccalaureate institutions asked legislators to partner with the institutions to support a biennial investment of $225 in state funding for the institutions. In return, the institutions would freeze resident undergraduate tution for the biennium as well as use the much needed investment to continue to sustain and build capacity for meeting critical state goals for higher education.

On Wednesday the public baccalaureates shared a similar message with the House Higher Education Committee.  The Council of Presidents presented an overview of the impact of the last five years on Washington’s public four-year institutions followed by presentations from each of the universities and college.

The work session provided the opportunity for the institutions to share with legislators, many of which are new to the Legislature, about their institutions as well as highlight institutional policy priorities for the session.

 

2013 Legislative Session Kicks-Off

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Today the Washington Legislature convened the 2013 legislative session. The session will focus on several large issues including the budget, K-12 funding, and healthcare. The session starts with a new governor and a Senate led by 23 Republicans and two Democrats.

This Week

This week will focus on organization of the Legislature, work sessions, and some bill hearings. Both the House and Senate will likely spend a good deal of time over the next few weeks in learning mode. 

Here is a snapshot of the week ahead as it relates to higher education:

January 15

  • 8 a.m. – House Higher Education Committee, which will hear about the newly formed Washington Student Achievement Council (which replaced the Higher Education Coordinating Board).
  • 11:30 a.m.- Gov. Gregoire will deliver her final State of the State Address to a joint session of the House and Senate.
  • 3:30 p.m. – House Appropriations. Public hearing on Gov. Gregoire’s operating budget proposals focused on K-12 and higher education.

January 16

  • Noon – Governor Inslee’s Inaugural Address will begin; look for a Republican response to immediately follow.
  • 1:30 p.m. – House Higher Education will hold a work session on the Higher Education Policy Priorities for 2013 of the Council of Presidents and the public, baccalaureate institutions.
  • 3:30 p.m.- Senate Ways & Means Committee will discuss the state’s operating and capital budgets.

January 17

  • 9:00 a.m. – House Education will get an update on the K-12 Student Longitudinal Data System and hear from the Education Research and Data Center on current projects.
  • 10:00 a.m. – House Higher Education hold a work session on the higher education priorities of stakeholders for the 2013 session

Legislature

Today the House and Senate will formally organize the leaders for each chamber and swear in new members.

All eyes will be on the Senate Monday when it convenes at noon for what is expected to be a historic moment . Senate “rules” state that the party with the most seats is the majority; with the power shifting to Republicans, look for procedural floor motions to name Tom as majority leader and Sheldon as President Pro Tem, cementing the new Majority Coalition.

On the first day of session, typical business is to officially approve committee chairs, ranking members and committee membership, committee schedules, cutoff dates, and other operating procedures. This year’s opening events may also see the election of six (or more) committee chairs and vice chairs led by Republicans. It is also possible there may be votes for committees to be led by Democrats or co-chaired between the two parties.

In the House, the Democrats have a clear majority (55-43). Not unlike the Senate, the House will experience the addition of several new members to the chamber. In the House 20 new members have joined the chamber (9 Democrats and 11 Republicans).

Seattle-based Frank Chopp is expected to continue as Speaker of the House. In addition, Rep. Larry Seaquist (D-Gig Harbor) will lead the House Higher Education Committee and will be joined by Rep. Gerry Pollett (D-Seattle) as vice chair. The ranking republican members will be Rep. Larry Haler (R-Richland) joined by Rep. Hans Zeiger (R-Puyallup).

Rep. Ross Hunter (D-Medina) will continue as chair of the House operating budget committee, which has been renamed as the Appropriations Committee. Republican Gary Alexander (R-Olympia) has been named the ranking member.

New this year is a true subcommittee on education appropriations that will be chaired by former school director Kathy Haigh (D-Shelton). The subcommittee will meet once during the week and will be comprised solely of legislators who are members of the larger Appropriations Committee.

Executive Branch

Tomorrow Governor Gregoire will give her departing speech. On Wednesday Governor- Elect Jay Inslee will outline his vision for the state in his inaugural address before a joint session of the House and Senate at noon.

Governor Gregoire’s Proposed 2013-15 Biennial Budgets

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On Tuesday Governor Gregoire released her proposed 2013-15 Operating and Capital budgets. As required by law, Governor Gregoire submitted an all-cuts budget that reflects existing revenues.

The all-cuts budget would reduce levy equalization by $100 million and eliminate the State Food Assistance Program and other services. In addition, higher education would receive a $52 million across-the-board cut to public universities and colleges. For Evergreen this is a reduction of $836,000 for the two-year budget.

Governor Gregoire in releasing the all-cuts budget stated it  “would have unacceptable consequences for our state and its people”. Given the drastic nature of an all-cuts budget the Governor also proposed a new revenue budget.

The new revenue operating budget proposed by the Governor relies on a combination of new revenues, program reductions, reform savings, and one-time transfers to address an anticipated $900 million shortfall in the next biennium and to take the first step towards  meeting the state’s basic education needs identified by the state Supreme Court in the McCleary decision.

Governor’s Proposed Biennial Operating Budget

The Governor’s proposed new revenue budget addresses the anticipated $900 million shortfall in 2013-15 through a combination of spending reductions, reform savings, and revenue.

The new revenue budget is balanced in large part by spending reductions and reform savings. The budget:

  • Suspends teacher cost-of-living pay raises required under Initiative 732 – $360 million
  • Delays implementation of the state’s paid family leave law – $14 million
  • Reduces funds to dozens of state programs
  • Trims funding for local government programs – $57 million
  • Assumes savings from the consolidation of “back office” functions via the consolidation of five agencies into a single agency – Department of Enterprise Services – $20 million
  • Assumes savings under the Patient Protection and Affordable Care Act (Obamacare) $140 million

In addition the budget assumes new revenue. This includes new or increased user fees, the repeal of a use tax exemption for fuel produced and used internally by extractors and manufacturers, and extends the Hospital Safety Net Assessment which is an inpatient fee that leverages increased Medicaid matching funds. Finally, the budget assumes $172 million in one-time transfers to the General Fund from a variety of accounts.

Though the new revenue budget holds the line on spending for state agencies, the budget does include some targeted investments. Among the investments is $50 million to add enrollment slots to the state’s early childhood education system, $20 million to expand STEM opportunities in higher education, and $8 million to improve prison safety.

The largest investment, however, is in K-12. The Governor’s budget represents a 12.3% increase to K-12 over the current biennium. This investment includes $1 billion – a first installment- to phase in legislation that will meet the requirements for basic education identified through the McCleary decision.

Under this legislation (HB 2776 passed in 2010) funding for K-12 would be provided to:

  • Reduce class sizes in grades K-2
  • Continue the phase-in of full-day kindergarten programs
  • Improve instructional practice through improved teacher and principal evaluations
  • Increase funding for maintenance, supplies, and operating costs
  • Fund 100% of the state’s new pupil transportation funding formula

To fund the investment in K-12, Gregoire proposes a balance between reductions in other services combined with new revenue. This would include a wholesale excise tax on gasoline and diesel fuel dedicated to pay the costs of pupil transportation services for the next three biennia and the extension of two temporary tax surcharges: (1) A 0.3% increase to the B&O tax paid by professionals (i.e. doctors, lawyers, accountants) and (2) a 50 cent per gallon beer tax.

Higher Education

The new revenue budget proposed by the Governor Gregoire provides a good starting point for budget discussions this session. Her budget builds on the momentum of the Washington Legislature in the 2012 supplemental session to stop any further erosion of state funding for higher education. The budget does not reduce funding for higher education and prohibits tuition increases for Washington’s universities and colleges. In addition the proposed budget maintains funding for the State Need Grant program.

The budget also makes a handful of investments in higher education. Among these investments is the creation of a competitive STEM enrollment pool for the public baccalaureates to compete for enrollment funds in STEM fields – $11 million; expansion of aerospace and STEM offerings at the community and technical colleges – $5 million; support for the colleges of engineering at WSU and UW – $4 million; and an increase in funding for the College Bound Scholarship program – $35 million.

The challenge for higher education under the Governor’s proposed new revenue budget is the total level of funding that is provided. While the budget proposes no reductions or ability to raise tuition, the level of funding for Washington’s public baccalaureate institutions does not meet the basic maintenance funding levels.

Evergreen

Although the Governor fully restores the temporary 3% compensation base reduction, there are no new resources provided to support increases in costs.

Under the new revenue budget, Evergreen is funded at a level that is below the maintenance level needed for the 2013-15 biennium. This means while the budget reflects the restoration of one-time transfers and reductions taken in the 2011-13 biennium, it does not reflect increases in operating costs (i.e. utility rates and collective bargaining agreements).

In addition the Governor’s proposed budget does not provide any funds to support investments requested by the College for IT and business infrastructure; student recruitment, retention and success; and faculty and staff recruitment and retention.

Capital Budget
Governor Gregoire also proposed a biennial capital budget for higher education. The Governor provided 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  Governor’s budget does provide some funding for minor works preservation it does not fully fund the College’s request. In addition, 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 Governor’s budget is the first of many budgets that will be released to address the 2013-15 biennium. While the Governor’s budget is the first step in the budget development process, there will be at least four more legislative budgets to review as the legislative session progresses.

The next budget is expected to be proposed by Governor-Elect Jay Inslee after he takes office in mid-January.

The Washington Legislature will convene on January 14 to begin its work to develop a biennial budget.  Over the next 105 days, the House and Senate will hold work sessions and public hearings on the gubernatorial proposed budgets as well as the budgets put forth by each chamber before finalizing a conference budget in late-April.

 

Executive Branch Projects Billion Dollar Deficit Next Year

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This week the Washington Office of Financial Management (OFM) released a new state budget outlook that puts the state in the red by June 2015.

According to OFM, the Washington state budget would experience a $1 billion shortfall for 2013-15. This doesn’t include the estimated $1.1 billion increase for the McCleary K-12 decision (HB 2776) or leaving any reserves other than the constitutional budget stabilization fund.

OFM identifies the major budget costs that would drive a budget shortfall as:

  • $366 million for actuarially recommended pension payment changes
  • $292 million for K-12 pay increases based on I-732
  • $242 million for increased debt service
  • $171 million to restore the 3% temporary salary cut for state workers
  • $166 million to restore K-12 salary reduction
  • $30 million for federal health care reform
  • $14 million for the “new” paid family leave benefit

The Outlook assumes state tax revenues will grow by $1.5 billion in the next biennium, from $31.2 billion to $32.7 billion.  This expected revenue increase is based on the state’s June Revenue forecast which was adopted with the caution that there is a 40% chance that this increase could be wiped-out depending on economic developments in Europe and actions (or lack thereof) in Congress. It also incorporates the spending-cut decisions made by lawmakers this year and assumes restoration of temporary measures included in the current budget

While OFM has consistently conducted budget outlooks for the state, this year the Office is required to show how the state’s future budgets could be balanced with available resources as a result of legislation passed in the 2012 supplemental budget requiring a balanced four-year budget outlook instead of a two-year forecast.

Governor Names Members to Washington Student Achievement Council

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This week Governor Gregoire named the citizen members to the Washington Student Achievement Council.

On July 1 the Washington Student Achievement Council (WASAC) was established to replace the Washington Higher Education Coordinating Board.  The Council, established in House Bill 2483 during the 2012 session,  will focus on raising educational attainment in Washington state.

Under the legislation, the council is charged with the following duties:

  • Proposing goals for increasing educational attainment, securing resources to support those goals and monitoring progress;
  • Developing a two-year strategic action plan and 10-year roadmap; and
  • Facilitating the development and expansion of innovative practices, developing policy recommendations based upon data and collaborating with other organizations to set minimum college admission standards.

Additionally, the council has been tasked with helping students prepare for and access postsecondary education and training, improving transitions, administering financial aid programs and approving private degree institutions.

The council will be composed of nine members. Four members are selected by four educational entities. The governor’s five appointees are:

  • Brian Baird, former U.S. representative for Washington’s 3rd Congressional District;
  • José Gaitán, managing member of The Gaitán Group, PLLC, and past president of the Hispanic National Bar Association;
  • Jay Reich, attorney at Pacifica Law Group and former deputy chief of staff to former Commerce Secretary Gary Locke;
  • Dr. Constance Rice, managing director for Knowledge Management for Casey Family Programs; and
  • Student trustee Lindsey Jahn, a student at Washington State University earning a bachelor of arts degree in business administration.

Other members of the council are:

  • Jane Sherman, interim executive director of the Council of Presidents, selected by the presidents of the public baccalaureate institutions;
  • Charlie Earl, director of the State Board for Community and Technical Colleges, selected by the SBCTC;
  • Ray Lawton, director and chairman of Lawton Printing in Spokane, selected by the Independent Colleges of Washington; and
  • Scott Brittain, former principal in the Puyallup School District now working in the assessment office at the Office of Superintendent of Public Instruction, selected by OSPI in consultation with the Department of Early Learning and the State Board of Education.

Washington Legislature Ends 2012 Supplemental Session

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The first special session of 2012 ended last night as of midnight. Though close the Washington Legislature did not complete business by this deadline and Governor Gregoire called the Legislature back for a second special session. After nearly eight straight hours of work from midnight to early this morning, the Legislature passed a balanced budget, jobs act, and a handful of policy reform bills.

Operating Budget

 The 2012 supplemental operating budget passed 64-34 in the House and 44-2 in the Senate and was delivered to the Governor for her consideration early this morning. The operating budget makes no reductions to K-12 and higher education.  Some of the highlights of the budget include $238 million to the general fund as a result of the state temporarily claiming control of local sales taxes before they are redistributed back to jurisdictions at their usual time, an increase in taxes raising about $14.5 million by eliminating a tax deduction for some large banks, additional revenue to the state through changing rules on roll-your-own cigarettes, and at the end a reserve fund of $320 million.

Impact to Higher Education

The operating budget as passed by the Legislature does not reduce general fund support for higher education, this includes further eductions to institutions and financial aid. The budget however does include some provisos and policy changes.

  • Bellevue College is authorized to offer baccalaureate degrees. Prior to the passage of this bill the College could only offer applied baccalaureate degrees.
  • The two and four year institutions are required to conduct a comprehensive review of institutional tuition waiver policies.
  • Evergreen is required to reallocate $276,000 for FY2013 for an expansion in enrollments in STEM as defined in HB 1795. This definition includes bachelor and advanced degree programs in the sciences, which includes agriculture and natural resources, biology and biomedical sciences, computer and information sciences, engineering and engineering technologies, health professions and clinical sciences, mathematics and statistics, and physical sciences and science technologies, including participation and degree completion rates for students from traditionally underrepresented populations.
  • The Washington State Institute for Public Policy is required to conduct a longitudinal study of the state need grant program ($100,000).
  • The two and four year institutions are not permitted to use state appropriated funds to support intercollegiate athletic programs
  • Changes state payments for public employee health benefits from $850 to $800 per month

Capital Budget and Jobs Act

The 2012  capital budget made no changes to Evergreen’s biennial capital budget. The Jobs Acts  which includes a new bonds bill and the traditional capital budget  are estimated to have an economic impact of $1.1 billion in construction work over the next 14 months.  

Reform Bills

As critical to the process as balancing the budget were efforts to pass reform bills to provide for greater long-term sustainability in the state budget. Among the policy bills passed by the Legislature three were critical to finally ending the 2012 supplemental session.

Pension

SB 6378 addresses early retirement benefits for future state employees.. Under law changes in 2000 and 2007, an employee with 30 years’ service could retire at age 62 with no reduction in benefits, and at age 55 with only a 20 percent reduction. Under the new law, retirement at age 62 will lower the benefit by 15 percent and age 55 by 50 percent. The savings will go to the state’s general fund.

 K-12 Healthcare

SB 5940 attempts to equalize health-insurance benefits for full-time and part-time school district employees and their families. The bill requires school districts to meet certain requirements, including making all employees pay a share of premiums, offering a high-deductible health plan and tying the price of individual and family benefits.

Balanced Budget

SB 6636 requires the state’s two-year budget to be in line with anticipated revenue over a four-year period or 4.5% growth per year, whichever is greater.   Growth has met or exceeded 4.5 percent in half of the past 16 years.

Special Session Moves to Week 2

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This week marks the second week of the first special session of 2012 and follows on the heels of a relatively uneventful first week.

First Week of Special Session – Recap

For the majority of the first week little was happening on The Hill. Governor Gregoire met with legislative leaders including buget negotiators, but little progress was made. Towards the end of the week things got a little more interesting.

On Thursday morning, following a budget meeting with House and Senate members, a group of Senators (Republicans and Democrats) released a new budget proposal (SB 6612). That afternoon, disappointed with the lack of progress on the budget and the release of a new proposal by a Senate coalition, the Governor pulled back on several bill signings and declared that delays and potential vetoes may take place if  no progress on the budget was made.

Second Week of Special Session Kicks-Off

Yesterday, as the second week of the special session began, budget negotiators met with the Governor’s Director of the Office of Financial Management to talk about the fundamental fiscal disagreement that separates the two camps.

The largest impasse appears to be how the House and Senate proposals suggest balancing the supplemental budget. The House passed proposal would shift approximately $330 million in current expenses to the next budget period by delaying payments to school-districts. The most recent Senate coalition proposal would delay a pension payment and balance it with pension reforms and retirement-policy changes.

Budget negotiations among legislators and the Governor’s office continued today.

Governor Suggests New Idea

In comments to reporters on Monday, the Governor hinted that she has presented a new plan to budget negotiators in an effort to break the impasse. However she did not reveal any aspects of the proposal.

It was reported that she did indicate to reporters what the plan “was not” which included  securitizing state revenues, privatizing the state lottery system, allowing slot machines in non-Indian casinos or a general increase in cigarette taxes.

House Republicans

This session each of the four caucuses issued supplemental operating budget proposals. Often the public only gets to see two proposals, one from the Senate and one from the House.

Of the four proposals released over the last month, three of the four make no cuts to K-12 or higher education. The exception being the House Republican proposal. News came forward this week that the House Republicans have announced a new supplemental plan that would make no cuts to K-12 or higher education. However, details have yet to be released.

2012 Special Session Begins

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Today the Washington Legislature convened the 2012 special session. On Friday Governor Gregoire called legislators back to Olympia at noon today to finish work on a supplemental operating and capital budget as well as the necessary policy bills needed to implement the budgets.

The special session is likely to be focused but it remains uncertain if it will go the entire thirty days. Governor Gregoire announced that she reached agreement with lawmakers to remain focused on a limited agenda, including the budgets and potentially a jobs plan that could inject $1.2 billion in state money into school construction, community projects, and environmental cleanups across the state. 

In addition a handful of other policy items may be considered, especially as vote counts are realized. Among these issues include the repeal of Initiative 728, various revenue-raising ideas, and reforms focused on a new way of budgeting and the creation of a new health-insurance pool for K-12 public school employees.

However the time it will take to reach agreement even on this limited agenda is uncertain.

Legislators left late Thursday night after failing to reach agreement on a supplemental operating budget to close the remaining $1 billion budget gap. A primary barrier to resolution during the regular session was the different approaches taken to close the budget gap. The Republicans – with support of three Senate Democrats- support skipping a penion payment and the Democrats support delaying a payment to K-12 schools.  Solving this hurdle along with a multitude of reductions and other policy changes will be the primary order of business this special session and will take time.

Progress is likely to be slow. This week it appears the House is not scheduled to convene and the Senate is scheduled only for pro forma sessions until Wednesday when a possible session is scheduled. In the meantime the Governor has indicated her desire to begin to set up negotiations between the “five corners” – meaning the Governor’s Office and the leaders of the Democratic and Republican caucuses in the House and Senate.

Sine Die Followed By Special Session

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At midnight last night the Washington Legislature ended the 2012 supplemental legislative session. The  session ended without the passage of an operating or a capital budget or several policy bills that would be necessary to implement any of the budgets proposed this session.

As a result, soon after the supplemental session was called Governor Gregoire announced the beginning of a special session. The Legislature will return to Olympia on Monday at noon to work on a budget compromise.

Governor Gregoire Addresses the State

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This morning Governor Gregoire delivered her annual State of the State address before the 63rd meeting of the Washington State Legislature.

“Each time Washington survived an economic crisis and rebuilt its future, it has not been about political party,” Gregoire said. “It has been about the future of Washington state. And now it’s time for us. This is our time, our time to build a better future for our children and grandchildren.”

In addition to addressing the state’s budget shortfall, Gregoire called on the Legislature to ask voters to approve a temporary, half-cent sales tax increase, enact a series of reforms to improve Washington’s education system, move forward with a major jobs and transportation package and pass legislation to ensure marriage equality.