Washington Special Session Nears Final Week

Today marks the 22nd day of the 30-day special session. The session is scheduled to end a week from tomorrow.

While budget negotiators continue to meet, there is no sign of a final budget to date.  Technically the Legislature is in violation of state law entering June without a budget.

The primary area of disagreement continues to be whether or not  new revenue is needed to balance the budget.

If a budget agreement doesn’t emerge this week a second special session might be necessary because of the time it takes to pass a budget. With the chances of a second special session increasing, so have discussions around next steps and impacts about what happens if state government enters a new fiscal year (July 1) without a budget.

In the meantime, lawmakers are teeing up some other issues for a likely floor vote including an omnibus bill to address impaired driving.

Washington Senate Committee Moves Higher Education Legislation

Today the Washington Senate Ways & Means Committee took action on two higher education bills.

Senate Bill 5941 would reduce tuition by 3% for undergraduate resident students for the 2013-15 biennium at the public baccalaureate institutions and community and technical colleges. Beginning in 2015-16 through 2018-19 the public baccalaureates and the community and technical colleges could not raise resident, undergraduate tuition cannot exceed inflation.

The bill also allows for the following exception if SB 5942 passes. If the Legislature does not provide sufficient funding to meet baseline funding levels then the institutions can increase resident undergraduate tuition for the following academic year necessary to achieve the baseline funding levels.

Senate Bill 5942 would create a baseline level of funding beginning in 2014 that is equal to the maintenance level appropriations in the 2013-15 budget expressed as a per-resident student rate based on a three-year average of the number of actual FTE enrolled resident students. The per-resident student is also required to increase each fiscal year by the rate of inflation.

Also in 2014 any funds available after meeting the baseline levels or increases to higher education would be required to be distributed based on performance to institutions. The funds would be distributed on a proportional basis and for the public four-years based on a three-year average performance on five metrics.

  1. Average time to degree for undergraduate students
  2. Number of undergraduate high-demand degrees produced
  3. Freshman retention
  4. Low-income populations
  5. Space utilization

Finally the bill would establish a work group to review the per-resident student rates utilized to establish baseline funding and make recommendations for achieving equal funding for similar institutions by the 2017-19 biennium.

Three amendments were offered to SB 5942, though none of the amendments were passed.

  • Would strike the entire bill and replace it with language to direct the Office of Financial Management to convene a technical incentive funding model task force to design an incentive funding model to provide new incentive funding to four-year institutions of higher education that demonstrate improvement on existing performance measures and to control resident undergraduate tuition growth.
  • Would make students who are enrolled or accepted for enrollment for at least three-quarter credits or the equivalent semester hours, in a qualifying higher education program, eligible for the State Need Grant program.
  • Would require the State Auditor to conduct a comprehensive financial audit of UW and WSU.

Both bills were moved out of committee and to the Senate floor for further consideration.

 

Halfway Through Special Session

Today marks the fifteenth day of the 30-day special session. This week the Capitol experienced an uptick in action.

This morning the House Finance Committee met to move legislation to make changes to the state’s estate tax for married couples.

House Bill 2064 is in response to the Bracken Decision — a state Supreme Court ruling that allows a spouse to transfer assets to a surviving spouse without paying taxes if they’re using a certain type of trust, known as a Qualified Terminable Interest Property trust. As a result of this ruling the state can no longer collect estate taxes on the trust when the surviving spouse dies. If passed the legislation would make changes to the estate tax law to prevent such refunds in the future

It is estimated that the decision could cost the state $160 million dollars over the next two years.  The Washington Department of Revenue will begin issuing tax refund checks in June worth about $40 million dollars because of the decision.

It is possible that the Washington House will take up the bill on the floor tomorrow.

In the Senate legislation is expected to be heard before the Ways & Means Committee on Friday regarding the estate tax.  Also on Friday the Senate Ways & Means Committee will hold a hearing on two higher education related bills.

Senate Bill 5936 would create a performance funding framework for higher education and Senate Bill 5937 would decrease tuition for resident undergraduate students by 3% for the 2013-15 fiscal biennium and limit future growth of tuition for this category of students to inflation.

Special Session Enters Second Week

The Washington Legislature entered the second week of a 30-day special session that began on May 13.  The special session is approximately a third over and a final budget compromise looks to still be a ways off.

Since special session convened budget writers from both chambers have met with Governor Inslee to reach common budget assumptions and discuss policy legislation for the session.

Special session is scheduled to adjourn on June 12.

In the meantime, Governor Inslee met today’s deadline to sign or veto all the bills passed by the Legislature before it adjourned its regular session last month.

Inslee has been steadily signing bills and made his first major veto on Monday, of $81 million in the transportation budget for the controversial bridge over the Columbia River – planning money he says isn’t needed unless the Legislature actually approves enough money to build the new bridge.

Washington Legislature Convenes for Special Session

This week the Washington State Legislature convened for a 30-day special session.

Since the Legislature adjourned two weeks ago little progress has been made towards a final budget. Budget writers for each chamber did meet a few times since Sine Die, but no deal was reached. The differences between the three-corners (i.e. Governor, Senate and House) remain vast as legislators begin this next phase in the process.

Yesterday, both the Senate and the House convened to caucus. The Governor and the Senate Majority Coalition each held press conferences which echoed what has been in the atmosphere since Sine Die, no significant progress has been made; Though both shared their intention to work out a final budget within the 30-day special session.

Not much is expected this week or even next week. No floor votes are scheduled this week, but a few committees are meeting.

One bit of news is a revised special session agenda for the Governor. Governor Inslee announced a narrower focus for the next 30-days than the wide open one he declared at the end of the regular session. The top three priorities for the Governor include: a budget compromise, a new transportation revenue package, and tougher drunk driving legislation.  The Governor still hopes that action will be taken on the DREAM Act and the Reproductive Parity Act.

The 30-day special session is set to end on June 12. If a budget compromise is not reached another special session will be called.

 

House Republican Caucus Elects New Leadership

This weekend the Washington House Republican Caucus elected new leadership.

House Republicans elected Snohomish County Representative Dan Kristiansen as their new minority leader at a reorganizaiton meeting on Saturday. Kristiansen replaces Rep. Richard DeBolt  from Chehalis who stepped down earlier this month.

In addition the Caucus elected Moses Lake Rep. Judy Warnick as Caucus Chair after Kristiansen moved to his new leadership position. Rep. Liz Pike from Camas stepped down as Assistant Floor Leader and Pierce County Rep. Steve O’Ban was elected to fill her position. Rep. Joel Kretz from Wauconda will remain as Deputy Leader.

Regular Session Ends; Special Session Scheduled

The 105-day regular legislative session came to a slow end over the weekend. The Senate and House adjourned in the early evening on Sunday.

Both chambers spent the last week and the weekend moving through a series of bills deemed necessary to implement the budget -including a revenue package in the House – as well as concurrences and confirmations of gubernatorial appointments in the Senate.

Legislation that was not passed off either the Senate or the House floors will be returned to the Rules Committee in its chamber of origin as part of the close-out process for the regular session.

Legislators will not be back in town until May 13, when Governor Inslee has announced for a 30-day special session to begin. Special sessions are authorized to run for 30 days and the governor cannot limit the types of bills or topics that are considered in a special session. Usually there is agreement among the Governor’s Office and the four caucuses on what the agenda for the special session will be, but as of close of business yesterday this did not appear to be the case. 

Though Governor Inslee is hopeful that between now and May 13 budget negotiators, who will work in Olympia during this break, will have a deal come mid-May. In the Governor’s eyes the agenda would include:

  • An operating budget that makes a substantial downpayment on McCleary but not on the backs of those that are less fortunate;
  • A transportation plan that preserves funding for existing infrastructure projects and funds new projects including the new bridge across the Columbia River; and
  • Important education policy measures to ensure that new education funding will achieve results.

Governor Inslee also referenced a handful of non-budget issues that he would like to see end up on his desk at the end of the special session. Among these issues is legislation on stiffer penalties for repeat DUI offenses, gun reform, the reproductive parity act, and the state DREAM Act.

In his press conference on Sunday, Governor Inslee provided insight into the difficult tasks that lie ahead noting that lawmakers were “…aren’t miles apart. At the moment, they’re light years apart.”

Washington House Passes Revenue Package

Late yesterday the Washington House passed a revenue package over to the Senate with a vote of 50-47.

Five Democrats joined Republicans voting against a $900 million revenue package.

The package which would raise funds for education over the next two years sets up the House’s position in budget negotiations which are expected to continue through May.

Smaller Revenue Package Passes House Committee

This afternoon the Washington House Finance voted along party lines to approve a $900 million tax package.

The package, originally slated at $1.16 million, was scaled back. The package moving forward no longer extends the temporary tax surcharge on beer that was adopted in 2010. In addition insurance agent services, janitorial services, and stevedoring services (shipping containers) were removed from the list of repealed tax exemptions.

The largest component of the revenue package that is now headed to House Rules is HB 2038  which would permanently extend a B&O tax surcharge that would otherwise expire in June.  In addition the package either levies taxes not in effect today or would not still be in effect after June including the elimination of tax breaks for bottled water, travel agents, and high-tech research and development. As passed the bill would bar a referendum but not an initiative challenge.

Several amendments were proposed by the minority to remove additional elements of the revenue package, but were not passed. It is expected that some of these amendmetns would likely return when the bill goes to the floor later this week.

Last Major Deadline Passes, Now Its Budget Time

On Wednesday the Legislature passed the last major deadline prior to Sine Die. As of 5:00 p.m. on April 17 all bills must have passed the opposite chamber in which they were introduced. The exception are those bills that are deemed NTIB.

Both the Senate and the House worked steadily this week towards this deadline moving hundreds of bills through the process. Some of these bills will now go back to their chamber of origin for concurrence if the bills were amended in the opposite chamber. Other bills, those that were not amended, will now be delivered to the Governor for his consideration.

This includes a handful of higher education related bills.

Bills for Concurrence

HB 1645 – Adds one public member to the Higher Education Facilities Authority.

HB 1736Directs the Office of Financial Management to work with institutions of higher education, the Department of Enterprise Services, the Department of Commerce, and the Department of Transportation to review the reporting requirements of institutions of higher education with the purpose of enhancing the efficiency and effectiveness of their operations, and report recommendations by December 1, 2013. Permits institutions of higher education and state higher education agencies to use or accept electronic signatures, as defined, for any human resource, benefits, or payroll processes that require a signature. Permits the Washington Student Achievement Council to negotiate and enter into interstate reciprocity agreements with other state or multistate entities regarding the operations of degree-granting institutions in the state. Permits the Washington Student Achievement Council to enter into certain agreements for the purposes of ensuring consistent.

Bills Delivered to the Governor

SB 5180Creates a 29-member legislative task force charged with improving access to higher education for students with disabilities. Requires the task force to make recommendations to the Legislature each December from 2013 to 2015.

SB 5195 -Allows a nonprofit institution recognized by Washington to be eligible to participate in the State Need Grant program, effective August 1, 2013.

SB 5343 -Requires institutions of higher education to provide make-up classes, exams, or other make-up events to National Guard members or other military reservists called to active duty or training for 30 days or less without prejudice to the final course grade or evaluation.

SB 5559 -Authorizes Central Washington University, The Evergreen State College, and Western Washington University to offer Educational Specialist degree.

HB 1109 – Requires institutions of higher education that offer an early course registration period for any segment of the student population to offer early registration to students who are eligible veterans or National Guard members.

Next Steps
The 2013 regular legislative session is scheduled to end at midnight on April 28. Between now and then both chambers will be working to move bills through to the Governors desk. In addition, the focus will increase around budget negotiations as the Senate, House and Governor work towards a final biennial operating and capital budget.