Committees Continue to Work to Move Bills

Policy committees in both the House and Senate continued their work to move bills forward in the process. Today marks the last day for House policy bills to move out of committee followed by a February 3 deadline in the Senate.

This morning kicked-off with dualing committees in the House. The House Capital Budget Committee held a public hearing on legislation that would provide increased flexibility around minor works and predesign requirements for institutions of higher education. The Council of Presidents, which represents the six public baccalaureate institutions in Washington, testified in support of the bill. The Committee followed the public hearing with an executive session in which the bill was passed by the committee and moved forward in the process.

At the same time the House Education Appropriations & Oversight Committee held a public hearing on legislation that requires a model policy for open licensing of courseware developed with state funds at higher education institutions.  Higher education institutions, students, faculty, and others, while supportive of the intent of the legislation, expressed concerns about the scope of the legislation, the impact on innovation, and lack of resources -both fiscal and personnel – to undertake this initiative. In addition representatives from higher education testified to the work already being done at institutions to provide for low-cost textbook options for students and highlighted other successful programs across the nation that might serve as models for the development of such an effort in Washington.

In the Senate, the Senate Higher Education & Workforce Development held a marathon public hearing on legislation ranging from developing an open courseware policy at insitutions of higher education to creating a database of services provided to students with disabilities at institutions of higher education to putting into law that athletics not receive any state funding at WSU and UW.

Gregoire Calls Special Session; Agencies Submit Where Reductions Would Come From

Late last week Governor Gregoire announced that she would call the Washington Legislature back to Olympia on November 28 for a special session that could last up to thirty days by law.

The Legislature is charged with finding $2 billion in state funding reductions to fill the $1.4 billion gap expected between state revenues and projected state expenses, expected further erosion in revenues in the November 17 forecast, and calls for the state to have some money left in the general fund on July 1, 2013, when it starts the next fiscal biennium.

Legislative leaders and the top budget writers will go over plans with the governor’s staff in the next two months to prepare for the session. Word on the street is that the Governor will release her proposed budget reductions the week of October 24.

Some of the ideas that are likely to emerge in the Governor’s work may be found in state agency submissions to reduce public services and programs in response to the Governor’s request for proposals to reduce budgets by first 5% and then 10%.

Washington Education Appropriations Committee Hears Impact of Budget

Today the Washington House Education Appropriations & Oversight Committee held a work session that focused on the impacts of the biennial budget and tuition policy changes to higher education.

Representatives from each of the public, baccalureate institutions and the community and technical colleges testified to the impact of the 2011-13 biennial budget on their students and institutions and the policy changes each institution adopted with regard to tuition.

Members of the Committee asked several questions with regard to the impact on financial aid with the passage of the budget and House Bill 1795. In addition, some members noted the sea change that has taken place as a result of HB 1795 and asked the institutions to provide feedback to policymakers as the various policies are implemented on campus.

The Committee also heard from experts regarding the impact of budget reductions on K-12, the latest high school graduate rate metrics, and efforts with regard to the transition between high school and college.

Senate Proposes Supplemental Budget

Higher education takes a hit in the Washington Senate’s proposed FY11 supplemental budget. On Wednesday the Senate released their proposed supplemental budget and held a public hearing on the legislation.

Under the Senate’s proposal higher education funding is reduced in total by $27.412 million, including $25.4 million through a tuition transfer from the institutions -public 2-year and 4-year – to the Higher Education Coordinating Board for financial aid.

In addition, the proposed Senate supplemental budget would reduce funding to the Higher Education Coordinating Board ($909,000), Workforce Employment and Training (ESD) ($318,000), and the following HECB programs and services ($632,000): (1) College Readiness Program, (2) Health Sciences and Services Authority (HSSA), (3) student financial aid administration, and (4) the Technology Transformation Task Force. Finally, the proposed supplemental reduces the funds each four-year, public baccalaureate institution pays as members of the Council of presidents ($168,000).

In addition, the proposed supplemental budget makes reductions in several other parts of the state budget including the Basic Health Plan and the Disability Lifeline program.

Legislators are trying to close a $588 million shortfall in the fiscal year that ends this June. Neither of the proposed supplemental budgets closes the budget gap in the current fiscal year, both proposals leave an approximate $200 million shortfall. 

The Senate Ways & Means Committee will hold an Executive Session on the proposed supplemental budget at 3:30 this afternoon.

Committee Memberships Finalized in WA Legislature

Today the House and Senate Republicans announced committee assignments for the 2011 legislative session. This follows the Democrats announcement of chairs and committee membership in December.

Senate Higher Education & Workforce Development Committee

  • Tom, Chair
  • Shin, Vice Chair
  • Hill, Ranking Minority Member
  • Baumgartner
  • Becker
  • Ericksen
  • Kastama
  • Kilmer
  • White

Senate Ways & Means

  • Murray, Chair
  • Kilmer, Vice Chair
  • Zarelli, Ranking Minority Leader
  • Baumgartner
  • Brown
  • Conway
  • Fraser
  • Hatfield
  • Hewitt
  • Honeyford
  • Kastama
  • Keiser
  • Kohl-Welles
  • Parlette
  • Pflug
  • Pridemore
  • Regala
  • Rockefeller
  • Schoesler
  • Tom

House Capital Budget

  • Dunshee, Chair
  • Ormsby, Vice Chair
  • Warnick, Ranking Minority Leader
  • Asay
  • Jacks
  • Jinkins
  • Lytton
  • Pearson
  • Tharinger
  • Zeiger

House Education Appropriations & Oversight

  • Haigh, Chair
  • Probst, Vice Chair
  • Anderson, Ranking Minority Leader
  • Dammeier
  • Dahlquist
  • Fagan
  • Frockt
  • Hargrove
  • Hope
  • Maxwell
  • Nealey
  • Orwall
  • Rekydal
  • Rolfes
  • Santos
  • Sells
  • Smith
  • Stanford

House Higher Education

  • Seaquist, Chair
  • Haler, Ranking Minority Leader
  • Buys
  • Carlyle
  • Crouse
  • Fagan
  • Hasegawa
  • Jacks
  • Parker
  • Probst
  • Reykdal
  • Sells
  • Springer
  • Warnick
  • Zeiger

House Ways & Means

  • Hunter, Chair
  • Darneille, Vice Chair Appropriations
  • Hasegawa, Vice Chair Finance
  • Alexander, Ranking Minority Leader
  • Bailey
  • Carlyle
  • Chandler
  • Cody
  • Dammeier
  • Dickerson
  • Haigh
  • Haler
  • Hinkle
  • Hudgins
  • Hunt
  • Kagi
  • Kenney
  • Orcutt
  • Ormsby
  • Parker
  • Pettigrew
  • Ross
  • Schmick
  • Seaquist
  • Springer
  • Sullivan
  • Wilcox

Washington House Announces Committee Chairs and Members

This week the Washington House of Representatives announced the chairs and committee membership for the 2011 regular session and 2012 supplemental session.

Committee assignments have yet to be announced for the Senate Republicans and House Republicans.

House Capital Budget

  • Rep. Dunshee, Chair
  • Rep. Ormsby, Vice Chair
  • Rep. Jacks
  • Rep. Jinkins
  • Rep. Lytton
  • Rep. Tharinger

House Education Appropriations

  • Rep. Haigh, Chair
  • Rep. Probst, Vice Chair
  • Rep. Frockt
  • Rep. Maxwell
  • Rep. Orwall
  • Rep. Reykdal
  • Rep. Rolfes
  • Rep. Santos
  • Rep. Sells
  • Rep. Stanford

House Higher Education

  • Rep. Seaquist, Chair
  • Rep. Carlyle
  • Rep. Hasegawa
  • Rep. Jacks
  • Rep. Probst
  • Rep. Reykdal
  • Rep. Sells
  • Rep. Springer

House Ways & Means

  • Rep. Hunter, Chair
  • Rep. Darneille, Vice Chair
  • Rep. Hasegawa, Vice Chair
  • Rep. Carlyle
  • Rep. Cody
  • Rep. Dickerson
  • Rep. Haigh
  • Rep. Hudgins
  • Rep. Hunt
  • Rep. Kagi
  • Rep. Kenney
  • Rep. Ormsby
  • Rep. Pettigrew
  • Rep. Seaquist
  • Rep. Springer
  • Rep. Sullivan

Special Session Underway

This morning the Washington Legislature convened the second special session of 2010. Facing a $1.2 billion budget shortfall in the current fiscal year, the Governor and the Legislature convened the special session, hopefully a single-day session, to reduce the current shortfall by hundreds of millions of dollars.

Thursday the Governor along with the four legislative caucuses reached a deal to be reached without amendments to reduce the current shortfall by $590 million.  The deal includes cuts to state programs and services, fund shifts, and additional revenue through tax compliance efforts. In addition, the Governor will implement an additional reduction of $200 million through across-the-board cutts. This brings the total budget reductions to be achieved  to $790 million.

Highlights

K-12 & Higher Education Spending Reductions – $311.4 million

  • Use of federal education dollars (Education Jobs Act) – $208 million
  • Higher education across-the-board cuts  – $51 million
  • Elimination of K-4 enhancement (effective February 1) – $39 million
  • Reduction of education reform programs – $9.2 million
  • Reduction of OSPI administration and program funding – $3.7 million

Human Services Spending Reductions – $154.1 million

  • Department of Corrections reductions – $46 million
  • Basic Health Plan Cap Trend – $27 million
  • FQHC Reimbursement Method Change – $20.3 millin
  • Reduction of Disability Lifeline Unemployable cash grant – $12.3 millin
  • Children’s Administration reductions – $11 million
  • Additional CHIPRA Performance Bonus – $10 million
  • Extension of temporary layoff to all staff (DSHS) – $9 million
  • Elimination of non-emergency adult dental  – $7 million
  • Extension of temporary layoff- adds two days (DSHS) – $4 million
  • Closure of McNeil Island – $3 million
  • Elmination of child support pass-through (Economic Services) – $1 million
  • Reduction of diversion cash assistance (TANF) – $900,000

Other Spending Changes – $24 .8 million

  • Reductions of separately elected officials, OFM & judical  – $11 million
  • Reductions Department of Natural Resources – $17 million

Fund Transfers – $54 million

  • State Toxics Control Account – $20 million
  • Disaster Response Account – $15 million
  • State Treasurer’s Service Account – $10 million
  • Financial Services Regulation Account – $5 million
  • Tobacco Prevention and Control Account – $3 million
  • Nisqually Earthquake Account – $1 million

Both the House and Senate Ways & Means Committees met this morning. The House Ways & Means Committee held a public hearing and took action on three bills:

  • House Bill 3223: Allows the Department of Revenue to waive penalties for companies that owe back taxes and pay up promptly. The measure is estimated to raise over $44 million over six months.
  • House Bill 3224Suspends child support pass-through payments to families receiving Temporary Assistance for Needy Families benefits.
  • House Bill 3225: Reductions to the 2009-2011 operating budget

The Senate Ways & Means Committee held a public hearing and took action on two bills:

  • Senate Bill 6892: Allows the Department of Revenue to waive penalties for companies that owe back taxes and pay up promptly. The measure is estimated to raise over $44 million over six months.
  • Senate Bill 6893: Suspends child support pass-through payments to families receiving Temporary Assistance for Needy Families benefits.

Both chambers are expected to take further action on the bills passed out of committee  on the House and Senate floor early this afternoon.

After today’s actions, the Governor and the Legislature will still need to resolve a remaining budget shortfall of approximately $540 million when the 2011 legislative session convenes in January.

Congressional 2nd District Looks Like Win for Democrats; Update on State Races

Today reports declare U.S. Representative Rick Larsen the winner in the race for the 2nd Congressional District in Washington.

Though John Koster, the Snohomish County Councilman running against Larsen, has not conceded election totals show that Larsen leads Koster 51% to 49%  with more than 281,000 votes counted as of Monday night.  This lead is outside the range for a mandatory recount.

State
At the time of this blog, the Democrats it appears that the Democrats will retain control of both the Washington House and Senate.

Regardless of the outcome, the majorities in both chamber will be much smaller than in the prior biennium.  Republicans  won several seats this election, closing the prior 13 member gap held by the Senate Democrats to five (27 Democrat; 22 Republican) at the time of this blog.

In the House, the Democrats held a 61-37 advantage. All 98 seats were on the November ballot, with 16 open seats. The latest poll numbers show the Democrat advantage has been reduced, closing the gap from 24 to 16 votes (57 Democrats; 41 Republicans) at the time of this blog.

What is Next
On November 15, the next revenue forecast is scheduled. The preliminary forecast showed little change from September, but an increase in caseloads is expected.

Between now and the end of December any unknowns regarding the election will be cleared. In addition, information regarding legislative leadership and committee chairs should emerge.

Finally, towards the end of December Governor Gregoire will release her budget. Followed by the beginning of the 2011 legislative regular session on January 10.

State budget deficit for 2011-13 Biennium -$3 billion

The Washington Office of Financial Managment (OFM) expects that the gap between state revenues and “basic spending pressures” will be approximately $3 billion next biennium.

In a report that provides state agencies, including higher education, with operating budget instructions for the next biennial budget, OFM suggests to provide funding to move current state programs forward, state funds will need to replace nearly $2 billion in federal funds that were made available to Washington during the recession. Part of these funds were used to offset cuts to higher education during the 2009-11 biennium.

In addition, funding requirements for pending funding obligations, statutory requirements to support important reforms in basic education, and restoration of voter approved commitments to reduce class size (I-728) and provide cost of living adjusts for teachers (I-732) add another $2 billion in spending pressures.

Though this adds up to a shortfall of $4 billion, OFM project that new revenues will provide $1 billion to close the gap, leaving $3 billion to be settled by the state.

So one may ask is there any good news.

In the report issued by OFM, indications show that Washington is experiencing much stronger revenue growth of 8.8% for FY 2011. Though this growth is relative to a new, much lower revenue base, it is definitely a positive note when compared to the drop in revenue in the last two years.

As Washington nears the 2011 legislative session more details will come into focus to provide a much clearer picture of the state budget.  The next big step in the process will be in mid-June when both the state caseload forecast and economic and revenue forecast are released.