Washington Legislature Adjourns Special Session

The Washington Legislature adjourned a one-day special session late this afternoon.

The one-day session reduced the estimated $1.2 billion shortfall in the current biennium by aprpoximately $700 million. 

The legislation passed today to achieve this savings – a combination of reductions, fund transfers, and some revenue changes – will be delivered to the Governor for her signature this week.  

The 2011 session is scheduled to begin Jan. 11 and end on April 24, during which time lawmakers will need to implement further reductions to balance the remaining budget shortfall in the current fiscal year and write a budget for 2011-13. That $32 billion budget is also facing a revenue shortfall, currently estimated at around $5 billion.

Washington Senate Takes Action on Budget Legislation During Special Session

This afternoon the Washington Senate passed legislation to reduce the state’s budget shortfall in the current fiscal year.  The  passage of this legislation will reduce the state’s budget shortfall by approximately $590 million dollars.

The Senate passed three bills – Senate Bill 6892 (38-0), Senate Bill 6893 (28-11), and HB 3225 (30-9).

  • 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.
  • House Bill 3225: Reductions to the 2009-2011 operating budget.

Senate Bills 6892 and 6893 now go to the House for action. House Bill 3225 will go to the Governor for her signature.

Full Week of Committee Hearings for the Washington House

The latter half of last week was dominated by committee hearings in the Washington House. Several of the committees heard updates and outlooks regarding the budget and issues facing higher education.

On Thursday three House committees met: (1) House Education Appropriations, (2) House Ways & Means, and (3) House Capital Budget. On Friday the House Higher Education met.

The House Education Appropriations Committee heard several presentations including a 2011-13 budget outlook and a report on the Joint Legislative and Audit Review Committee’s (JLARC) Study on Transparency in Higher Education Data.

The House Ways & Means Committee received an outlook for the 2011-13 budget and an update on the collective bargaining for 2011-13. In addition, the Commission discussed solutions to the budget problem.

The House Capital Budget Committee heard updates from grant recipients of the Jobs Act for K-12 School Construction and Higher Education and K-12 Energy Efficiency Program. Representatives from The Evergreen State College – John Hurley, Vice President of Finance and Administration and Paul Smith, Director of Facilities – provided the Committee with information regarding the grants the College received under this program. Hurley and Smith were joined by representatives from the community colleges and K-12.

The Committee also received a preview of the capital budget for 201 1-13 session.

On Friday, the House Higher Education Committee met. The Committee received several major reports and updates. Among the reports and updates was the Study on Transparency in Higher Education Data and reports on dual credit, running start, and the industry skill panel.

Washington House Passes Budget Reductions

This afternoon the Washington House passed legislation to reduce the state’s budget shortfall in the current fiscal year.  House Bill 3225 passed with a vote of 86-6.

House Bill 3225 reduces the state’s budget shortfall by approximately $590 million dollars. It is the largest portion of a deal reached by both Chambers and the Governor this past week. The deal also includes fund shifts and additional revenue through tax compliance efforts.

The bill now goes to the Senate for action later today.

Washington House Democrats Announce Rest of Leadership Team

This past week the Washington House Democrats elected individuals to three leadership positions for the upcoming 2011-13 legislative session.

Rep. Eric Pettigrew was elected by the House Democratic Caucus as Caucus Chair. In addition, Rep. Jim Moeller was elected as Speaker Pro-Tem and Rep. Tami Green as Majority Floor Leader.

Pettigrew, Green, and Moeller join Rep. Chopp, Rep. Sullivan, and Rep. Van De Wege who were elected to leadership in November.

Budget Savings in Special Session Overestimated

Today the Governor’s Office revised the estimated savings expected from actions taken during the special session.

The latest estimates project a reduction in the current fiscal year shortfall of approximately $700 million, instead of the $790 million reported earlier this week.

In addition, it is estimated that the across-the-board cuts enacted by the Governor as part of the deal will generate approximately $110 million in savings, instead of the $200 million previously reported.

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.

Washington House Meets in Olympia

On Wednesday members of the Washington House arrived in Olympia for caucus meetings and committee hearings. They are expected to be in Olympia through Friday.

Assembly Days, as they are known, kicked-off Wednesday morning with a joint hearing of the House Education Committee and House Higher Education Committee. The hearing focused on teacher preparation in Washington.

The Committee heard from a variety of individuals and organizations regarding the recruitment of teachers in Washington and math and science instruction.

Vauhn Foster-Grahler, an Evergreen faculty member and the Director of the QuaSR Center participated in a three-person panel on math and science instruction and how to improve instruction in these areas in Washington.  Foster-Grahler was joined by reprsentatives from UW-Seattle and St. Martin’s.

In the afternoon House Ways & Means held a public hearing to listen to concerns from Washingtonians regarding potential reductions to programs and services in the current fiscal year and in 2011-13.

The Committee received a brief presentation on the across-the-board cuts issued by the Governor and the recommendations of the Governor’s Committee on Transforming Washington’s Budget.

Both Committee hearings can be viewed via TVW.

Committees Review Work Completed During the Interim

The Washington Senate arrived in Olympia yesterday. Members from both parties were in caucus or committee meetings for most of Monday and will likely do the same today.

Yesterday, the Senate Ways & Means Committee met. Committee members received budget updates and outlooks for both the operating and capital budgets.

Today, the Senate Higher Education and Workforce Development Committee met to hear several reports completed during the interim. In particular the Committee focused on:

  • An update on employment opportunities in Washington, training needs, and current training efforts from the Workforce Training Education Coordinating Board.
  • An update on the mission study, progress on applied baccalaureates, and e-learning as well as a briefing on the efficiency study work plan from the State Board for Community and Technical Colleges.
  • An update on the state’s progress toward the goals indentified in the Statewide Strategic Master Plan. Report on system design plan implementation from the Higher Education Coordinating Board.

Both Committee hearings can be viewed via TVW.