Tag Archives: Governor

Governors Budget Task Force Hits the Road

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In June Governor Gregoire announced a new state budget process for the 2011-13 biennium. Her intention is to develop a new biennial budget with more transparency, community involvement, and expert outside advice.

As a part of this process the Task Force will hit the road to hold several public hearings this summer across the state.  The focus of the hearings will be to share the budget decisions facing Washington and the resources that will be available for the budget.

In addition, the hearings will provide an opportunity for the public to share their ideas and thoughts about what services the government should and should not deliver.

To date four public hearings have been scheduled.

July 19 – Tacoma – 7:00-9:00 p.m.
University of Washington – Tacoma, Phillip Hall, Milgard Assembly Room, 1900 Commerce St.

July 21 – Everett – 7:00-9:00 p.m.
Everett Community College, Parks Building, Multi-Purpose Room, 2000 Tower St.

July 27 – Vancouver – 7:00-9:00 p.m
WSU-Vancouver, Admin Bldg., Room 110, 14204 NE Salmon Creek Avenue

July 29 – Spokane – Time TBA
Spokane City Hall, City Council Chambers, 808 W Spokane Falls Blvd.

Governors Budget Task Force Named

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In June Governor Gregoire announced a new state budget process for the 2011-13 biennium. Her intention is to develop a new biennial budget with more transparency, community involvement, and expert outside advice.

As a part of this effort Governor has asked leaders from across the state in a variety of fields to serve on the Governor’s Committee on Transforming Washington’s Budget. This panel will serve in an advisory capacity to the Governor during the budget development process. The charge of the committee is to quest budget assumptions, serve as a sounding board, and lend guidance.

The members of this Task Force include:

Patricia Akiyama, Director of External Affairs, Port of Seattle
Representative Gary Alexander, House Republican Caucus
Sandra O. Archibald, Dean, UW Daniel J. Evans School of Public Affairs
Rick S. Bender, President, Washington State Labor Council
Rodney L. Brown, Jr., President, Washington Environmental Council
Don C. Brunell, President, Association of Washington Business
Larry Cassidy, retired business owner and former member of NW Power and Conserv. Council
Brian Cladoosby, Chairman, Swinomish Indian Tribal Community
Richard Davis, Coordinator, WashACE (Washington Alliance for a Competitive Economy)Commissioner Mike Doherty, Chairman, Board of Clallam County Commissioners
Senator Karen Fraser, Senate Democratic Caucus
Carver Gayton, Emeritus and founding Executive Director of Northwest African American Museum and former Commissioner of Washington State Employment Security Department
Dr. Deborah J. Harper, President, Washington State Medical Association
Deborah Heart, President-Elect, Washington State School Directors Association
Dr. Thelma A. Jackson, Owner/President of Foresight Consultants and former school board member
Eric Johnson, Executive Director, Washington State Association of Counties
Eric D. Johnson, Executive Director, Washington Public Ports Association
Mary Lindquist, President, Washington Education Association
Representative Kelli Linville, House Democratic Caucus
Mike McCarty, Chief Executive Officer, Association of Washington Cities
Jason Mercier, Director, Center for Government Reform, Washington Policy Center
Stephen F. Mullin, President, Washington Roundtable
Fred A. Olson, former Deputy Chief of Staff to the Governor
Chief Don Pierce, Executive Director, Washington Association of Sheriffs and Police Chiefs
Stephen Reynolds, Chairman, President, and CEO, Puget Sound Energy
David Rolf, President, SEIU Healthcare 775NW
Orin Smith, former Chief Financial Officer of Starbucks and former director of Office of Financial Management
Lyn Tangen, Senior Director of Corporate Communications, Vulcan
Suzanne Petersen Tanneberg, Vice President of External Affairs and Guest Services, Children’s Hospital
Melinda Travis, Spokane community leader
Remy Trupin, Executive Director, Washington State Budget and Policy Center
Marilyn Watkins, Policy Director, Economic Opportunity Institute
Senator Joe Zarelli, Senate Republican Caucus
David A. Zeeck, President and Publisher, The News Tribune
Cristobal Guillen, President/CEO, Association of Washington State Hispanic Chambers of Commerce

State Releases Six-Year Budget Outlook

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The combined released today of the Governor’s plans to transform the state budget and the Office of Financial Management’s six-year budget outlook make it clear that the state economy will slowly recover. The Governor in her letter to Washingtonians stated, “…we expect budget challenges to be in place for at least the next four years.”

This is evident in the documents provided by the Governor’s Office and the Office of Financial Management. Both show projected budget shortfalls for the 2011-13 biennium ($3.053 billion) and 2013-15 biennium ($8.761 billion).

Both shortfalls are directly related to expected new costs over the next four-years, including replacement of federal funds, medical inflation, pension obligations, K-12 basic education obligations, and funding for voter initiatives I-728 (class size) and  I-732 (teacher salaries).

In its release of the six-year budget forecast, the Office of Financial Management notes that the shortfall estimates for 2011-13 and 2013-15 are based on budget obligations in current law and the latest official revenue and caseload forecasts. In addition, they recognize that any solution to the 2011-13 budget gap would reduce the projected gap in later years.

Governor Announces New State Budget Process

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Governor Gregoire announced a new state budget process for the 2011-13 biennium. Her intention is to develop a new biennial budget with more transparency, community involvement, and expert outside advice.

The new budget process will assume zero-based budgeting from the beginning. Zero-based budgeting focuses on reviewing the current and alternative funding levels for each agency activity (including zero).

In addition, each agency will be asked eight critical questions before their budgets are increased or shuffled. These eight questions are:

  • Is the activity an essential service?
  • Does state government have to perform the activity or can it be provided by others?
  • Can the activity be eliminated or delayed in recessionary times?
  • Does the activity need to be paid for with state general funds? Should users pay a portion of the costs?
  • Are there federal funds or other fund sources available to support this activity?
  • Are there more cost-effective, efficient ways to do the activity?
  • Can the activity be the subject of a performance contract?
  • Can the activity be the subject of a performance incentive?

The process will include a public component involving the opportunity for citizens to submit suggestions and a statewide tour to share the new budgeting process.

Finally, the Governor has asked leaders from across the state in a variety of fields to serve on the Governor’s Committee on Transforming Washington’s Budget. This panel will serve in an advisory capacity to the Governor during the budget development process. The charge of the committee is to quest budget assumptions, serve as a sounding board, and lend guidance.

The Governor also issued a time-line for the development of the 2011-13 budget. It is expected that as other dates and locations for budget hearings across the state are confirmed they will be announced.

  • Spring 2010                        Committee on Transforming the Budget formed
  • July 19, 2010                     First Budget hearing (Tacoma)
  • Early September 2010   Agency budget requests due
  • September 16, 2010        Updated revenue forecast adopted
  • November 18, 2010        Update revenue forecast adopted
  • Mid-December 2010      Governor’s proposed 2011-13 budget released
  • January 10, 2011             2011 Legislative Session begins

Governor Partially Vetoes 2010 Supplemental Budgets

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This afternoon Governor Gregoire partially vetoed the 2010 supplemental operating and capital budgets passed by the Legislature in April.

Operating Budget

The Governor vetoed several sections of the 2010 supplemental operating budget passed by the Legislature in April. In total she vetoed all or parts of thirty two sections of Senate Bill 6444.

Only a handful of the sections vetoed impact Evergreen in some way. None of the areas vetoed that impact Evergreen changed the state funding reduction to Evergreen’s institutional budget.

  • Vetoe Section 501(1)(f)(iv) – Office of the Superintendent of Public Instruction, Exempting the Professional Educator Standards Board (PESB) from Expenditure Restrictions.
    This section exempted PESB from the restrictions on travel allowances and meeting costs that apply to other boards and commissions under Chapter 7, Laws of 2010 (Engrossed House Bill 2617). This law allows agencies to seek exceptions to the travel and meeting restrictions for critically necessary work. To maintain consistency in the application of these restrictions among state boards and commissions this section was vetoed.
  • Veto Section 708, pp.270-271, Washington Management Service and Exempt Management Services Reductions.
    This section ties to Section 2 of Senate Bill 6503 which was vetoed. The budget proviso assumes additional compensation reductions of $10 million in General Fund-State funding from the Washington Management Service and exempt managers, who comprise less than 5% of the state employees. This cut would require that specified staff take nearly two weeks of temporary layoff time beyond the ten days included in ESB 6503. This inequity is likely to create problems in recruiting/retaining qualified and experienced workers, as well as be disruptive to normal state operations. Managers will be subject to temporary layoffs in the same proportion as all affected state employees.
  • Veto Section 902, pp. 289-290, Agency Staffing Report
    The agency staffing report required by Section 902 adds another layer of complexity to the data already required to be reported through allotment and accounting systems. The addition of monthly job class information adds immensely to agency workloads with seemingly minimal benefit. The Governor directed the Office of Financial Management to work with legislative fiscal staff to identify alternative reporting formats that can be useful without creating an unacceptable workload burden.
  • Veto Section 920, pages 301-302, Washington State Quality Awards
    Section 920 accelerates the date by which agencies must apply to the Washington State Quality Awards program. It also limits that requirement for agencies that have more than 300 full-time equivalent employees. A great deal of time and effort is required for a well-executed Washington State Quality Award application. The new date of June 30, 2010 is too short a timeframe especially for large agencies that may have to submit multiple applications.

Capital Budget

The Governor vetoed only three sections of the 2010 supplemental capital budget passed by the Legislature in April. Of the three sections vetoed, two impact Evergreen.

  • Section 6003, p.111, Office of Financial Management Budget Instructions
    With this proviso the Office of Financial Management must require that preliminary energy audits be conducted on project requests that involved significant renovations or improvements in owned or leased facilities. Reducing energy consumption is a high priority, but requiring energy audits before funding decisions are made will be burdensome and costly. The Governor has directed the Office of Financial Management to develop instructions to state agencies that will serve the goal of reducing energy costs without requiring formal audits for every project.
  • Section 6012, pp. 121-122, Project Tranfer Authority
    This proviso eliminates existing authorization for the Office of Financial Management to approve the transfer of funds from one capital project to another within the same state agency. It also places limitations on approving spending plans for construction contingencies, bid alternates, and equipment costs for capital budget projects already approved by the Legislature. These limitations are too stringent for state agenices and may cause unintended cost increases and schedule delays. The Governor has directed the Office of Financial Management to continue to scrutinize capital project spending plans to identify additional savings that can be directed to new projects in the 2011-13 biennium.

Governor Gregoire Signs Revenue Legislation Into Law

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On Friday, Governor Gregoire signed the two-bill revenue package passed by the Legislature earlier this month without veto.

Both bills are expected to generate $757 million in revenue through 2013. Senate Bill 6143 modified excise tax laws to preserve funding for public schools, colleges and universities, as well as other public systems essential for the safety, health, and security of Washington.

House Bill 2493 increased taxes on cigarettes and other tobacco products.

Change is in the Air

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Today another key staffer to Governor Gregoire announced her departure from the Governor’s Office.

Robin Arnold-Williams served as head of the Governor’s Executive Policy Office.  She has been in this role since December 2008 and will leave at the end of April. No replacement has been named at this time.

Arnold-Williams shared that it was a time for a break from a long public-service career.

Arnold-Williams departure comes after the recent resignation of Linda Bremer as Director of General Administration and Joyce Turner’s move to Director of General Administration from Gregoire’s Deputy Chief of Staff. Both of these moves come after several internal changes in the Governor’s staff including Director of the Office of Financial Management and the Governor’s Chief of Staff.

Governor Signs I-960 Legislation

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This afternoon Governor Gregoire signed into law  Senate Bill 6130.

Senate Bill 6130 temporarily suspends tax-limiting Initiative 960 in its entirety. From the effective date through July 1, 2011, any action or combination of actions by the Legislature that raises taxes may be taken with the approval of a majority of members elected to each house of the Legislature.

Senate Bill 6130 is effective immediately.

Governor Proposes $605 Million in New Revenues

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This afternoon Governor Gregorie, in a letter to members of the Washington Legislature, asked policymakers to close tax loopholes and raise “sin” taxes to generate $605 million in additional state revenues for the current biennium.

Gregoire’s plan reaches the $605 million mark by increasing taxes on products including refined oil, bottled-water, carbonated beverages, cigarettes, candy and gum.

The largest of the increases applies to toxic and hazardous materials which would triple the current toxics tax from 0.7 percent to 2 percent, raising $148 million for general fund programs in the next year and $67 million for city and county storm-water projects around the state. In addition, the following increases were also proposed:

  •  A bottled water tax levied at 1 cent per ounce at wholesale, raising $134.7 million in the next year.
  • A carbonated beverages tax levied at 5 cents per 12 ounces that raises $93.6 million in the first year.
  • A$1 per pack in cigarette taxes, raising the state levy to $3.025 per pack and raising $88.8 million in revenue in the first year.
  • A sales tax on candy and gum would raise $28 million.

In addition to raising taxes on specific products, Gregoire supports moves to close tax loopholes. Specifically, she cited closing tax loopholes that favor out-of-state businesses, raising $73 million; eliminating a business tax break for gold bullion dealers; and repeal ing a tax credit for syrup taxes.

Senate Hears Impact of Governor’s Proposed 2010 Supplemental Budget

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Last week the key budget committees of the Washington State House focused on the impacts of the Governor’s proposed 2010 supplemental budget, including her “new budget”.

This week the Senate appropriation committee, Senate Ways & Means, will take on the same focus. Last week Governor Gregoire testified before Senate Ways & Means regarding her proposed 2010 supplemental budget and support for new revenue, this week the Committee will hear from the public.

This afternoon The Council of Presidents and representatives from each of the four-year public baccalaureate institutions testified before the Senate Ways & Means Committee regarding the impact to the baccalaureate sector.

Evergreen focused testimony on the impact of the reductions to date and the impact of additional cuts on students, faculty, and the institution proposed in the Governor’s 2010 supplemental budget. Evergreen emphasized the impact of the proposed reductions and eliminations of state financial aid programs on Greeners.

Today’s public hearing before the Senate Ways & Means Committee set the tone for the week. Several policy bills will be heard in the House and Senate that, if implemented, would impact the state budget. Included among these bills are SB 6355/HB 2655 which implements the Higher Education Coordinating Board (HECB) system design report; HB 2822 which includes tuition/fees in institutional budget proposals to the HECB; SB 6503 which mandates state agency closures throughout the year; and SB 6382 which restricts compensation.