Tag Archives: supplemental budget

Governor Partially Vetoes 2010 Supplemental Budgets

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This afternoon Governor Gregoire partially vetoed the 2010 supplemental operating and capital budgets passed by the Legislature in April.

Operating Budget

The Governor vetoed several sections of the 2010 supplemental operating budget passed by the Legislature in April. In total she vetoed all or parts of thirty two sections of Senate Bill 6444.

Only a handful of the sections vetoed impact Evergreen in some way. None of the areas vetoed that impact Evergreen changed the state funding reduction to Evergreen’s institutional budget.

  • Vetoe Section 501(1)(f)(iv) – Office of the Superintendent of Public Instruction, Exempting the Professional Educator Standards Board (PESB) from Expenditure Restrictions.
    This section exempted PESB from the restrictions on travel allowances and meeting costs that apply to other boards and commissions under Chapter 7, Laws of 2010 (Engrossed House Bill 2617). This law allows agencies to seek exceptions to the travel and meeting restrictions for critically necessary work. To maintain consistency in the application of these restrictions among state boards and commissions this section was vetoed.
  • Veto Section 708, pp.270-271, Washington Management Service and Exempt Management Services Reductions.
    This section ties to Section 2 of Senate Bill 6503 which was vetoed. The budget proviso assumes additional compensation reductions of $10 million in General Fund-State funding from the Washington Management Service and exempt managers, who comprise less than 5% of the state employees. This cut would require that specified staff take nearly two weeks of temporary layoff time beyond the ten days included in ESB 6503. This inequity is likely to create problems in recruiting/retaining qualified and experienced workers, as well as be disruptive to normal state operations. Managers will be subject to temporary layoffs in the same proportion as all affected state employees.
  • Veto Section 902, pp. 289-290, Agency Staffing Report
    The agency staffing report required by Section 902 adds another layer of complexity to the data already required to be reported through allotment and accounting systems. The addition of monthly job class information adds immensely to agency workloads with seemingly minimal benefit. The Governor directed the Office of Financial Management to work with legislative fiscal staff to identify alternative reporting formats that can be useful without creating an unacceptable workload burden.
  • Veto Section 920, pages 301-302, Washington State Quality Awards
    Section 920 accelerates the date by which agencies must apply to the Washington State Quality Awards program. It also limits that requirement for agencies that have more than 300 full-time equivalent employees. A great deal of time and effort is required for a well-executed Washington State Quality Award application. The new date of June 30, 2010 is too short a timeframe especially for large agencies that may have to submit multiple applications.

Capital Budget

The Governor vetoed only three sections of the 2010 supplemental capital budget passed by the Legislature in April. Of the three sections vetoed, two impact Evergreen.

  • Section 6003, p.111, Office of Financial Management Budget Instructions
    With this proviso the Office of Financial Management must require that preliminary energy audits be conducted on project requests that involved significant renovations or improvements in owned or leased facilities. Reducing energy consumption is a high priority, but requiring energy audits before funding decisions are made will be burdensome and costly. The Governor has directed the Office of Financial Management to develop instructions to state agencies that will serve the goal of reducing energy costs without requiring formal audits for every project.
  • Section 6012, pp. 121-122, Project Tranfer Authority
    This proviso eliminates existing authorization for the Office of Financial Management to approve the transfer of funds from one capital project to another within the same state agency. It also places limitations on approving spending plans for construction contingencies, bid alternates, and equipment costs for capital budget projects already approved by the Legislature. These limitations are too stringent for state agenices and may cause unintended cost increases and schedule delays. The Governor has directed the Office of Financial Management to continue to scrutinize capital project spending plans to identify additional savings that can be directed to new projects in the 2011-13 biennium.

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

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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.

House Concurs on Alternative Public Works Bill…Now Heads to the Governor

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In the late hours of the final day of special session the House concurred on the Senate’s amended version of  House Bill 1690 .

House Bill 1690 clarifies that, unless otherwise specifically provided for in law, public bodies that want to use an alternative public works contracting procedure may use only those procedures specifically authorized in chapter 39.10 RCW.

House Bill 1690 now goes to the Governor for her signature.

House Passes Lottery Marketing Legislation

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Late in the evening the House passed Senate Bill 6409, which re-brands and markets the state lottery to recognize the expanded use of lottery revenues (established in the bill) to benefit higher education financial aid programs, early learning, and economic development.

Senate Bill 6409 creates the Washington Opportunity Pathways Account. Beginning in state fiscal year 2011, all net revenues from in-state lottery games that are not otherwise dedicated to debt service on the Safeco Stadium and Qwest Field and Exhibition Center are dedicated to the new account. All net income from the multi-state lottery games, other than those dedicated to the Problem Gambling Account, are deposited into the Washington Opportunity Pathways Account rather than into the General Fund.

The Washington Opportunity Pathways Account may only be used for the following programs: recruitment of entrepreneurial researchers, innovation partnership zones, and research teams; the early childhood education and assistance program (ECEAP); the State Need Grant; the State Work Study program; College Bound Scholarships; Washington Promise Scholarships; Washington Scholars; the Washington Award for Vocational Excellence (WAVE); the Passport to College Promise; the Educational Opportunity Grant; and GET Ready for Math & Science Scholarships.

Senate Bill 6409 is also  expected to provide another $15 million in lottery revenues, from re-branding and market efforts, to help offset the $2.8 billion state budget deficit.

Senate Bill 6409 now goes to the Governor for her signature.

House Concurs on Jobs Creation Act, Bill Heads to Governor

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Around 11:00 pm this evening, the House concurred on the Senate’s amended version of House Bill 2561 with a vote of 59 to 38.

House Bill 2561 requires a ballot measure be sent to voters to authorize the issuance of $505 million in bonds to finance an array of energy efficiency improvements to public schools and buildings on public college and university campuses.

The bonds for the improvements would be funded by making permanent the proposed tax on bottled water after three years.

House Bill 2561 now goes to the Governor for her signature.

Senate Passes 2010 Supplemental Capital Budget

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Around 10:30 pm this evening, the Senate passed the 2010 supplemental capital budget (HB 2836) with a vote of 33 to 13.

The 2010 supplemental capital budget provides funding for some new projects as a result of savings achieved through bid savings and the recognition that some projects would not be possible this biennium allowing their appropriations to be used elsewhere.

The budget includes an additional $100 million to add to the $505 million in the Jobs Creation Act (HB 2561) passed earlier this evening.

The 2010 supplemental capital budget passed this evening is a mixed bag for Evergreen. The upside is that the budget provides $125,000 for a feasibility study of the College’s Biomass Gasification Project. This investment makes the state a partner along with Evergreen students and the College who also provided $125,000 each to the study through energy-related fees and energy-cost savings.

The capital budget also reflects the shift from the operating to the capital budget ($3.247 million) of facility maintenance and operations costs.

Finally, the capital budget places greater reliance on Evergreen’s local funds, including the school trust and a portion of student tuition.

House Bill 2836 now goes to the House for concurrence.

Senate Concurs on 2010 Operating Supplemental Budget…Budget Heads to Governor

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Just after 10:00 pm the Senate concurred on the House amended version of the 2010 supplemental operating budget  (SB 6444) with a vote of 25-21.

The 2010 supplemental operating budget implements a multi-pronged approach to remedying the $2.8 billion state budget shortfall this biennium. The Legislature reduced funding for state programs and services by $755 million and incorporated approximately $618 million of approved/anticipated additional federal relief to Washington State.

The budget transfers $461 million from various funds to increase General Fund-State resources. The Legislature is also expected to pass legislation that will raise $794 million in new revenues.

The impact of the 2010 supplemental budget passed by the House on Evergreen is both positive and negative. The budget secures funding for student aid while at the same time reduces the College’s budget by over $1.2 million and makes further cuts through compensation reduction related-actions.

The 2010 supplemental operating budget bill now goes to the Governor for her signature.

House Concurred on Cigarette Tax Legislation, Bill Heads to Governor

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Late this evening the House concurred on the Senate amended version of House Bill 2493 – the tax increase on cigarettes and other tobacco products. The House concurred with a vote of 54-43.

House Bill 2493 raises state cigarette taxes by $1 per pack and increases taxes on other tobacco products.

House Bill 2493 now goes to the Governor for her signature.

Senate Passes Revenue Legislation

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A little past 8:30 pm this evening the Senate adopted the revenue conference report and voted to pass half of the two-bill revenue package. The Senate passed Senate Bill 6143 with a vote of 25-21.

Senate Bill 6143 modifies excise tax laws to preserve funding for public schools, colleges, and universities, as well as other public systems essential for the safety, health, and security of all Washingtonians.

Senate Bill 6143 raises $667.7 million in new revenue. Combined with the revenue expected to be generated by an increase in the cigarette tax and taxes on other tobacco products,and revenue generated from lottery revenues and the Convention and Trade Center Account the total revenue generated is expected to be $794.1 million.

Senate Bill 6143 now goes to the Governor for her signature.

House Passes 2010 Supplemental Operating Budget

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Just after 7:00 p.m. this evening, the House passed the 2010 supplemental operating budget  (SB 6444) with a vote of 54-43.

The 2010 supplemental operating budget implements a multi-pronged approach to remedying the $2.8 billion state budget shortfall this biennium. The Legislature reduced funding for state programs and services by $755 million and incorporated approximately $618 million of approved/anticipated additional federal relief to Washington state.  In addition, the budget transfers $461 million from various funds to increase General Fund-State resources. Finally, the Legislature is expected to pass legislation that will raise $794 million in new revenues.

The House passed a single amendment on the floor. The House agreed to increase the amount provided to restore administrative reductions in the 2009-11 budget from $16. 8 million general fund to $19.1 million general funds to respond to recent job losses at the Department of Social and Health Services (DSHS).

Specifically,the increase in funding is directed towards the Department of Social and Health Services to attempt to maintain current employment levels and achieve savings through vacancies and attrition, implement efficiencies as soon as possible to minimize reductions in force, and implement a management strategy that minimizes disruption of service and negative impacts on employees.

The impact of the 2010 supplemental budget passed by the House on Evergreen is both positive and negative. The budget secures funding for student aid while at the same time reducing the College’s budget by over $1.2 million in addition to reductions to be achieved through compensation reduction related-actions.

The 2010 supplemental operating budget now goes to the Senate for concurrence.