2011 Legislative Session: Week 12

This week the focus will be on the Senate and House budget committees and some floor action.

Last Friday marked the passage of another major deadline, requiring all policy bills from the opposite chamber  be moved either to an appropriations committee.

The Legislature must move all bills from the appropriations committee to the floor by the end of this week (April 1).

To this end this week will be filled with a mix of public hearings and executive sessions to move bills forward as the deadline looms. Please see the links below for a list of all the hearings that might be of interest.

Several Bills That Would Impact Higher Education Considered This Week

Tomorrow marks the passage of another major deadline in the Legislature. All bills, from the opposite chamber, must have moved out of policy committees either to an appropriation committee or the floor by the end of day.

The last two weeks have been a rush of activity as the House and Senate consider what bills to move forward through the process.

Several bills have been considered that will impact higher education. Legislators have heard public comment on bills ranging from mentoring programs at higher education institutions to efforts to provide great flexibility for higher education with regard to purchasing and contracts.

A handful of these bills are moving forward in the process and the fate of several more will be know after 5:00 p.m. tomorrow. Among the bills that have passed tomorrow’s deadline is legislation that would ease the transfer of advanced placement credits and other pre-college credits from high school to college and a bill that would restructure Washington’s Guaranteed Education Tuition (GET) program.

House Committees Focus on the Future

This afternoon higher education took part in a collaborative discussion in the House Community Development and Housing Committee focused on increasing productivity, jobs, and prosperity.

Rep. Phyllis Kenney – chair of the committee –  hosted a conversation with representatives from the business, environmental, labor, and education communities, including the Council of Presidents, with the goal of identifying what actions can take place to move Washington’s economy forward using data and results-driven conversations.

The conversation focused on four major questions:

  • How do Washington’s changing demographics impact how we do business (in education, workforce development, and economic development)?
  • How doe we enhance public-private partnerships that generate business activity, facilitate private investment, and increase jobs?
  • What are the key strategies for creating prosperity and economic recovery for all of Washington’s residents?
  • Given current budget constraints, what strategies and investments of the state will lead to the highest return on investment?

The conversation was contexted by presentations from the Office of Financial Management, Employment Securities Department, and the Workforce Training and Education Coordinating Board regarding changing demographics, employment, and education and training in Washington.

Also focused on the future was the House Higher Education Committee. This afternoon the Committee spent considerable time on Washington’s Guaranteed Education Tuition (GET) program. The GET Program allows purchasers to buy tuition units at current prices for use at a later date.

The Committee heard presentations from the Higher Education Coordinating Board,  Office of the State Actuary, and Office of the State Treasurer.

The Legislature often reviews the GET program and the policies that underscore the program. This session, however, the GET program has been incorporated into a couple of bills, placing the program under a new light. 

Senate Bill 5749 would make changes to the membership of the Committee on Advanced Tuition that oversees the program and to a handful of policies that currently structure the program. The Committee held a public hearing on SB 5749 this afternoon.

The GET program is also identified as part of House Bill 1795 which would require an actuarial analysis by the state actuary for the Guaranteed Education Tuition Program.

Legislative Session 2011: Week 11

The release of the March forecast this week opens the door for the release of proposed biennial budgets next week. The House will release their biennial budgets first this session.

While both the biennial transportation budget and the capital budget (March 23) have been scheduled for a public hearing and executive session, no actions have been scheduled to date for the operating budget. 

The budget will be the center of focus next week, both in terms of the biennial budget and the move from policy committees to fiscal committees.

All policy bills from the opposite chamber must be moved either to an appropriations committee or the floor by the end of Friday, March 25 (one week from today).  The Legislature will then have a week to move all bills from the appropriations committee to the floor. Bills with a fiscal impact must be moved to the floor by the end of Friday, April 1.

To this end this week will be filled with a mix of public hearings and executive sessions to move bills forward as the deadline looms. Please see the links below for a list of all the hearings that might be of interest.

State Loses Revenue But Does Not Hit $1 Billion Mark

Washington’s state budget took a large hit this morning. The March Economic & Revenue Forecast, released today, shows an additional $777.8 million decline in revenue between now and 2013.

The Forecast will require Washington to further reduce the budget for the current fiscal year by $79.8 million and by $698 million in 2011-13.

The forecast widens the state’s budget shortfall from $3.6 billion to $5.5 billion. The shortfall is the difference between projected state revenues and what it would cost to continue state services at current levels, plus pay for wage and benefit increases, new programs and higher costs to keep up with inflation and population growth.

Washington’s State Chief Economist, Arun Raha stated that the revenue forecast is primarily down because the economy is not recovering as quickly as previously expected. In addition, Raha cited conflict in the Middle East and the subsequent hike in oil prices  as well as the economic impact to the state from the natural disasters in Japan as contributors.

The latest revenue projections are in line with what budget writers had been expecting. Though budget action has not been scheduled for next week, it is likely to take place soon so stay tuned.

Biennial Budgets Expected Soon

Tomorrow the Washington State Forecast Council will be presented with the latest revenue forecast. Dr. Arun Raha, Washington’s State Economist will present the forecast at Noon.

Initial projections for the 2011-13 biennium were estimated at $4.6 billion when the legislative session began in January. Since January lawmakers have passed a second supplemental budget reducing the budget gap in the current fiscal year to approximately $250 million and have been planning on an additional $500 million shortfall in the latest revenue forecast for the 2011-13 biennium.

However, it is expected that $500 million may be a low ball figure, with some expecting the shortfall to range between $1-2 billion.

If the forecast is not significantly greater than anticipated, the House plans to release their proposed biennial budgets on March 22, hold public hearings on the proposed budget as soon as March 23, and move the bill out of Committee by March 24. A vote on the budget on the House floor is tentatively scheduled for March 26.

The budget discussions would then shift to the Senate.

Washington Senate Recognizes Female Athletes

The Washington Senate adopted a resolution  recognizing women in sports. 

Sponsored by Sen. Kohl-Welles, the resolution honors women in sports from elementary school to College.  The resolution specifically recognizes that participation in athletics is one of the most effective ways for girls and women in the United States to develop leadership skills, discipline, initiative, and self-confidence.

In addition the resolution recognizes the participation of female athletes at Washington’s higher education instituions, include the 55 female athletes at Evergreen.

The resolution calls for the Washington State Senate to honor Washington girls and women in sports on March 16, 2011, and encourage support for our state’s female athletes and athletic programs.

House Budget Committee Holds Work Session on Higher Education

This afternoon the House Ways & Means Committee held a work session on higher education funding.

Committee members received several presentations focused on the funding trends and impacts of the Governor’s proposed budget for the two-year and four-year public higher education sectors and state financial aid programs.

Mike Reilly, Council of Presidents, shared with legislators the impact of state funding trends and the Governor’s most recent budget proposal on the six, public baccalaureate institutions. 

Since the 2007-09 biennium state funding for Washington’s public baccalaureate institutions has been cut by nearly $500 million or 28%. Current state funding is at the same level as it was in the 1999-01 biennium.

The Governor’s proposed 2011-13 budget would cut an additional $380 million in state funds (a reduction of nearly 50% in state support since 2007-09) leaving state support of approximately $1 billion as part of a proposed $32.1 billion state budget.

The Committe also heard from the State Board of Community and Technical Colleges, the Higher Education Coordinating Board and higher education legislative fiscal and policy staff.

Legislators asked a variety of questions ranging from what is the elasticity of tuition at the institutions to how does a change in focus from enrollment (inputs) to degrees (outputs) impact quality and access.

Caseload Forecast Shows Some Optimism; Not Expected in the Revenue Forecast Out this Week

On Friday the Washington Caseload Forecast Council released the March caseload forecast report but did not adopt the report due to a lack of a quorum. The forecast shows a reduction of $287 million in the cost of government through June 2013.

The forecast in effect  shows a reduction of $78 million to the state from costs for public schools, Medicaid, prisons and other programs through June and an additional $207 million for the next two-year budget cycle.

The reason for the reduction in costs is primarily federal health care reform. Reduced use of state-paid medical services by those on the case rolls is driving down the costs, accounting for $70 million of the avoided costs in the short term and about $117 million in the next cycle. 

In other news, the Economic and Revenue Forecast Council released its monthly tax collections report Friday, saying they are down by a cumulative $85 million through early March, compared with the November forecast.

The collections for the state general fund fell $39.9 million below the previous forecast over the past month alone. But the state’s economy is growing, and tax collections overall still are higher than in the previous year.

The revenue council makes its next quarterly report Thursday. Dr. Arun Raha will offer the latest revenue forecast on March 17 at noon in Olympia to legislative members of the Economic and Revenue Forecast Council. The announcement is expected to be carried live on TVW

Some legislators fear revenue could fall as much as $2 billion from November’s predictions. “Optimistic” projections pegged the revenue shortfall at $500 million more than originally projected. Lawmakers are expressing concerns that it will be even larger, which will make closing the current projected gap of $4.6 billion for the 2011-13 biennium even greater.

State revenue is tied in a major way to sales and business activity, and sales are linked to consumers’ sense of job security or job prospects. But the quarterly economic forecast issued a week ago said the state still is 180,000 jobs below the pre-recession peak, and full job recovery won’t occur until after the next biennium ends June 30, 2013.

About all that legislative leaders have agreed on at this point is to first try writing a budget without tax increases.