Financial Aid May Get Bump from Lottery

A  new marketing campaign promoting Washington’s Lottery as a source of funding for higher education financial aid programs is expected in the coming months.

At the direction of the 2010 Legislature, Washington’s Lottery can now be used to partly fund the State Need Grant, State Work Study, Washington Scholars, the Washington Award for Vocational Excellence (WAVE), and other programs.

The HECB is working with Washington’s Lottery to communicate this news statewide. Senate Bill 6409, prime-sponsored by Senator Jim Kastama, established a Lottery-funded Opportunity Pathways account, from which funds can be directed to student financial aid and early learning programs.

In the current Fiscal Year 2011, about 65 percent ($73.5 million) of Lottery dollars in the Opportunity Pathways account will be used to help fund the State Need Grant program, and 35 percent ($40 million) will support early learning programs.

Other funding for these programs will come from the General Fund. Lottery proceeds that previously contributed to K-12 construction projects will continue to be funded at $102 million under the General Fund.

General Fund appropriations for financial aid were reduced significantly in the 2011 supplemental budget. It is hoped that greater awareness about the Lottery’s contribution to higher education scholarships and financial aid will spur increased public support, reducing the need for General Fund appropriations.

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.

What is the Status with Washington’s Anticipated Federal Dollars for 2010-2011?

Congress continues to debate over the inclusion or exclusion of federal Medicaid dollars to states.

Twenty-eight states, including Washington, crafted budgets for FY10 assuming Congress would approve additonal Medicaid dollars.

Governors, including Washington’s Governor Gregoire,  from across the country lobbied Congress hard this week with an eye to the July 1 state budget deadline. The Medicaid extension is set to expire at the end of 2010, halfway through the fiscal year that begins in most states on July 1. 

The extension was first included in the 2009 economic stimulus bill. Since then the extension has faced a rocky road. Both chambers of Congress have passed different variations of the request and President Obama has called the aid necessary to avoid massive layoffs.

Despite this support, the extension and the dollars it would bring to states cotninues to be attached to congressional bills that die for one reason or another.

As Congress continues to move forward without securing the extension and funding, states are moving forward and beginning to consider their next steps. At question is how quickly cuts would have to be made if Mediciad dollars are not included in legislation passed by Congress.

For Washington the lack of additional federal Medicaid dollars would result in a reduction of $480 million to the state budget. If the dollars do not come through Washington’s budget reserves could be eliminated and the state would face an additional $200 million in budget cuts.

The Governor could make these cuts across-the-board or call the Legislature in for a special session.

Stay tune!

Governor Announces New State Budget Process

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

Quality Education Council Work Plan for 2010

Yesterday, State Superintendent of Public Instruction Randy Dorn presented the Washington House Committee on Ways & Means with the Quality Education Council’s 2010 Work Plan.

The work plan is a product of the recent passage of state reform legislation for basic education and education funding. The legislation passed (H.B. 2661 and H.B. 2776) includes the following:

  • Requirements to identify funding and programs that close the achievement gap and improve graduation rates
  • All-Day Kindergarten included in basic education
  • Funding allocations and reporting on expenditures using a prototypical school model. Translates all major funding formulas to this new transparent structure by September 2011
  • Better transportation funding formula
  • Requirement to identify adequate levels for classified staff
  • Increased instructional hours once funded
  • Enhanced high school diploma requirements

With this in mind, the Quality Education Council has set forth the following work plan.

  • Identify measurable goals and priorities for the educational system utilizing the state reform plan and current performance data as a baseline
  • Recommend programs and funding to Close the Achievement Gap, Increase Graduation Rates, and Decrease the Dropout rate, including: recommend an improved Learning Assistance Program, including funding methodology; recommend an improved Transitional Bilingual Program, including funding methodology; review recommendations made by the Achievement Gap Oversight and Accountability Committee; and review recommendations made by the Building Bridges Workgroup
  • Implementation schedule for revised graduation requirements and increased hours of instruction
  • Making necessary reports to the Legislature regarding classified staffing adequacy and capacity of school districts to implement new funding including for class size reductions.

Finally, Superintendent Dorn spoke to the framework provided by the adoption of S.B. 6696 – Race to the Top legislation.

The legislation provides a framework for important changes that are required for the development of a comprehensive state reform plan.  The framework for this education reform plan is set out in three categories: (1) Goals, (2) Capacities, and (3) Outcome measures.

The framework identifies four goals for all Washington students,

  • Enter kindergarten prepared for success,
  • Compete in mathematics and science nationally and internationally,
  • Attain high academic standards regardless of race, ethnicity, income or gender, and
  • Graduate able to succeed in college, training, and careers.

In addition, in the area of outcomes, goals are set that highlight the link between pre- K12 and higher education. These include increasing graduation rates; increasing teacher and leader effectiveness; increase college readiness, attendance, persistence & completion; increase post-secondary degree and certificates; and increase work placements.

Vice Chair of Washington House Ways & Means Nominated for Federal Position

Today, State Representative Mark Ericks (D-North King County/South Snohomish County) announced that he has been nominated by President Obama to be the U.S. Marshal for Western Washington.

Ericks has nearly 30 years of experience with police departments in Bellevue and Bothell. He has served in the Washington House of Representatives since 2005 and was Vice Chair for the House Ways & Means Committee during the 2009-11 biennium.

Ericks’ is one of six U.S. Marshal choices announced by the White House this week. His nomination will require confirmation by the U.S. Senate.

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.

Preview of Candidates for Fall Election in Washington

This fall all of the seats in the Washington House of Representatives will be up for election along with twenty-four seats in the Washington Senate.

House
Though all seats will be up for election in the Washington House, several current serving representatives have announced their decision to either retire or run for a different office.

Both representatives for District 1 (parts of Snohomish and King Counties) have announced they will not seek re-election. Rep. O’Brien is retiring and Rep. Ericks (Vice Chair for Ways & Means) is setting his sights on a position with U.S. Marshall’s Office.

Several other representatives are also seeking positions elsewhere in public service.

  • Rep. Herrera (R-18 Kalama, Evergreen State College) – Third Congressional District
  • Rep. Williams (D-22 Thurston County, Evergreen State College) – WA Supreme Court
  • Rep. Priest (R-30 Federal Way) – Federal Way Mayor
  • Rep. Roach (R-31 Bonney Lake) – Pierce County Council
  • Rep. Nelson (D-34 West Seattle) – Vacated Senate Seat currently held by Sen. McDermott
  • Rep. Ericksen (R- 42 Ferndale) – Vacated Senate Seat currently held by Sen. Brandland

Finally, several more representatives have chosen to end, which for many is a multi-decade career in the Washington Legislature, to pursue other interests.  These include Representatives:

  • Rep. Wood (D-3 Spokane),
  • Rep. Wallace (D-12 Vancouver, Chair of House Higher Education),
  • Rep. Kessler (D-24 Parts of Clallam, Jefferson and Grays Harbort Counties, Majority Leader),
  • Rep. Flannigan (D-27 Tacoma/Fife), and
  • Rep. Quall (D-40 Parts of San Juan, Skagit, and Whatcom Counties, Chair of House Education).

Senate
This fall  twenty-four seats will be open for election in the Washington Senate.  The seats in which the term will expire in January 2011 are currently held by the following elected officials:

  • Sen. Marr (D-6 Spokane)
  • Sen. Morton (R-7 Kettle Falls)
  • Sen. Delvin (D-8 Richland)
  • Sen. Holmquist (R-13 Moses Lake)
  • Sen. Honeyford (R-15 Sunnyside)
  • Sen. Shin (D-21 Edmonds, Senate Higher Education & Workforce Dev. Cmte)
  • Sen. Kilmer (D-26 Gig Harbor, Chair – Senate Higher Education & Workforce Dev. Cmte)
  • Sen. Franklin (D-29 South Tacoma)
  • Sen. Eide (D-30 Federal Way)
  • Sen. Roach (R-31 Auburn)
  • Sen. Fairley (D-32 Parts of King and Snohomish Counties)
  • Sen. Keiser (D-33 Kent)
  • Sen. McDermott (D-34 West Seattle)
  • Sen. Sheldon (D-35 Potlatch)
  • Sen. Kohl-Welles (D-36 Seattle)
  • Sen. Kline (D-37 Seattle)
  • Sen. Berkey (D-38 Everett)
  • Sen. Brandland (R-42 Bellingham)
  • Sen. Murray (D-43 Seattle)
  • Sen. Hobbs (D-44 Lake Stevens)
  • Sen. Oemig (D-45 Kirkland)
  • Sen. Jacobsen (D-46 Seattle, Senate Higher Education & Workforce Development Cmte)
  • Sen. Kauffman (D-47 Kent)
  • Sen. Tom (D-48 Bellevue, Vice Chair of Senate Ways & Means)

Four of the Senate seats will be open races with no incumbent. Senators Fairley, Franklin, and Brandland have announced their retirment, while Sen. McDermott is seeking a seat on the King County Council in November.

Senate Passes 2010 Supplemental Capital Budget, Bill Goes to the Governor’s Desk

In the early hours of the 30th and final day of the first special session of 2010, the House concurred on the Senate’s amended version of the 2010 supplemental capital budget (HB 2836) with a vote of 61 to 36.

House Bill 2836 now goes to the Governor for her signature.