Governor Says No to Federal Position

 Governor Gregoire will not be moving to D.C. anytime soon. 

This afternoon the spokeswoman for Governor Gregoire announced that the Governor informed the White House that she did not want to be considered for the job of solicitor general. 

“She (the Governor) explained that she does not want to be considered. She mentioned it is not the right time for here and it is not the right time for the state”, stated Karina Shagren, spokeswoman for the Governor.

It was announced earlier this summer that Governor Greogire was on a list of individuals to be considered for the position of solicitor general which was vacated by Elean Kagan upon her appointment to the Supreme Court last week.

State’s Budget Gap Shrinks Thanks to Federal Funds

Today, the U.S. Senate took the necessary final vote to provide $26 billion to states for Medicaid and education.

The bill extends programs enacted in last year’s stimulus law to help preserve the jobs of teachers and other public employees and provides an extension of federal Medicaid funds to states.

The U.S. House will return from their August recess to take a vote on the bill next Tuesday.

Once the House passes the bill and the legislation is signed by the President, Washington is expected to receive $530 million. The state will receive $320 million for Medicaid and $208 million to pay salaries for 3,000 teachers who were in line to lose their jobs.  

The influx of federal dollars does stave off a special session for now. However, Washington policymakers are now focused on the latest revenue forecasts, expected August 10, to gauge the health of the state budget.

Special Session Unlikely

It is unlikely that Washington will experience another special session this year. Early this week, Democratic leaders in the Washington Senate and House ruled out holding a sepcial legislative session to fill budget gaps related to a lack of federal aid and declining state revenues.

Governor Gregoire had set a noon deadline on Monday for Democratic leaders to determine whether or not they could bring their caucuses for a short special session to remedy the looming budget gap.

Though the spokeswoman for the Governor did not announce how the budget gap will be bridged, the alternative is to require across-the-board cuts of up to 4 percent to solve the budget gap.

The question of whether to hold a special session or implement across-the-board cuts would be eliminated if Congress acts. The U.S. Senate is considering an extension of $16.1 billion in federal medical assistance funding and $10 billion in aid for schools to avert teacher layoffs for states.

Action on the added funding was delayed from Monday to tomorrow (Wednesday). Even if the Senate approves the funding it is required to go to the U.S. House for final approval.

Committee to Transfrom Budget Holds Last Public Hearing

Last night the Governor and members of the recently formed Committee on Transforming Washington’s  Budget held the last of four public hearings in Spokane.

The hearings mimicked many of the same messages that the Governor and committee members have heard over the last month in Tacoma, Everett, and Vancouver– spare services and reduce taxes.

Among the requests from the 43 people who testified: Don’t cut money that pays to educate our youth; Don’t cut jobs of parole officers who keep an eye on violent offenders; and Don’t cut money that keeps the elderly in their own homes.

Though the statewide hearings are over, the Governor and the Committee are still collecting input through the website launched to gather thoughts regarding what government should and should not fund.

Statewide Budget Hearings Conclude in Spokane

Over the last two weeks the Governor and members of the Committee on Transforming Washington’s Budget have held three public hearings on the 2011-13 biennial budget with a fourth and final hearing to be completed this evening in Spokane.

In early July, the Governor and the Task Force traveled to Tacoma to listen to concerns and ideas regarding the 2011-13 biennial budget.

Last week the Governor held the second of four public hearings in Everett. Approximately 400 people showed up at Everett Community College to listen to the fiscal context facing Washington and share their ideas for reducing the state budget.

Nearly 50 people shared their views with the Governor and committee members. Ideas included reducing state employee salaries, selling off the state ferry system, and privatizing port districts. Others argued for funding for a variety of public services and the impact of failing to do so.

Advocacy for public services and programs dominated the third of four public hearings in Vancouver. Approximately 400 people arrived at the WSU-Vancouver campus to hear about the budget and share their ideas.

Special Session Decision Expected Early August

Today Governor Gregoire announced she will decide whether or not to call a special session or make across-the-board cuts in early August.

A special session or across-the-board cuts would be required to reduce the $300 million budget shortfall if federal aid for Medicaid dollars falls through.

Not a fan of the across-the-board cuts, Governor Gregoire estimates that the cuts would reduce all state-funded programs by an additional 3.5-4.0 percent. The only exceptions to the reduction would be basic education, debt payments, and pensions.

Governor Announces Higher Education Task Force

Today, Governor Gregoire announced the formation of a Higher Education Task Force. Evergreen’s President, Les Purce, will serve as a representative for the four-year Council of Presidents.

The goal of the Task  Force is to create a sustainable funding model and develop strategies that increase accountability to ensure taxpayers get the best value for the state’s and student’s investment at our four-year universities.

Gregoire asked the task force to focus on three tasks:

  • Develop a realistic and viable long-range funding strategy that provides Washington’s students with affordable higher education opportunities.
  • Recommend ways to improve accountability and performance in our public four-year higher education institutions to ensure we get the very highest value for the state’s and student’s investment.
  • Consider whether the higher education system’s current governance model should be modified to improve system-wide performance and accountability.

The task force will be chaired by Brad Smith, general counsel and senior vice president of Legal and Corporate Affairs at Microsoft. 

Members of the governor’s Higher Education Funding Task Force are:

 Brad Smith, Chair, Senior VP and General Counsel, Microsoft Corporation
Judith Runstad, Foster Pepper LLC
Charlie Earl, Director, State Board for Community and Technical Colleges
Jesus Hernandez, Chair, Higher Education Coordinating Board
Thomas L. “Les” Purce, President, Evergreen State College
Pat Shanahan, Vice President & General Manager, Airplane Programs, Boeing Company
David Tang, Managing Partner, K&L Gates LLP
Paula Reynolds, CEO, Preferwest LLC
Dean Allen, CEO, McKinstry Company
Bill Ayer, Chair and CEO, Alaska Air
Michael Kluse, Senior VP, Battelle
Maud Daudon, President & CEO, Seattle Northwest Securities
Chris Rivera, President, Washington Biotechnology and Biomedical Association
Ray Stephanson, Mayor of Everett
Paul Rosier, Executive Director, Washington Association of School Administrators
Alex McGregor, President & CEO, The McGregor Company

The Higher Education Funding Task Force will meet several times this summer and make recommendations to Gregoire in the fall, with proposals to eventually be incorporated into her 2011 legislative agenda.

Governor Hints at Special Session

Late this week Governor Gregoire suggested that she would consider a special session if the federal Medicaid matching dollars do not come to the state by August 9.

Speaking to KOMO radio she shared that she would consider a special session and will consult with legislative leaders to limit a session to a day or two.

This comes at a time when Washington faces a projected shortfall of $3 billion in the 2011-13 budget cycle and a slow economic recovery that is forcing fundamental changes in state operations.

Speculation suggests that a special session could take place as soon as September.

Governor Holds First Public Hearing on Budget

On Tuesday evening in Tacoma, the Governor and staff held the first of four currently scheduled statewide public hearings in Tacoma.

The media estimated approximately 450 individuals in attendance in the standing-room only crowd at the University of Washington Tacoma campus.

Approximately 140 people signed up to speak and raised several ideas with regards to the services government should and should not deliver.

Some of the ideas that were expressed, and are echoed on the transforming the budget website set up by the Governor, include no longer providing meals to state workers during meetings, reducing the number of license plates for Washington registered cars from two to one, and legalizing marijuana.

Others shared the areas of government that should not be cut including affordable housing, preservation of recreation areas, and education and health care.

The next public hearing on the budget is scheduled for July 21 from 7:00-9:00 p.m. at Everett Community College.

Governor Launches Budget Idea Website

On the heels of the Governor’s statewide tour regarding the 2011-13 budget an interactive website was launched.

Over the next month Governor Gregoire plans to hold public hearings in Everett, Spokane, and Vancouver to share the budget decisions facing Washington and the resources that will be available for the budget as well as hear from the public their ideas and thought about what services the government should and should not deliver.

The website, launched the same day as the first public hearing in Tacoma, is an interactive website that will allow Washingtonians to share, comment, and vote on budget ideas.

The most highly rated ideas by viewers will rise to the top of the list and be considered by state budget writers.  Ideas will be posted between 8:00 a.m. and 5:00 p.m. Monday through Friday.