Tag Archives: supplemental budget

Day Twelve of Special Session; Nearing End of Week 2

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Yesterday was the first time since Monday that the Senate floor was active. Most Senators returned to Olympia for a brief floor session to concur on a handful of House bills. The House did not take any floor action.

Of most interest was the action the Senate took on Senate Bill 6143 (revenue tax bill). The Senate rejected the House’s amendments to SB 6143 and formally asked for an official Conference Committee.

In the meantime, the leadership of both chambers continue behind-the-scenes negotiations on a tax package to fund the 2010 supplemental operating budget and take action on a 2010 supplemental capital budget.

Lawmakers remain deadlocked over how to raise this revenue, the primary dividing point being the implementation of a sales tax. The Senate still supports a temporary general sales-tax increase and the House does not.

The ongoing divide between the two chambers has opened the door for “what if” conversations about concluding the session without the adoption of  a budget. The state’s budget for 2009-11 is already in place (i.e. the budgets that passed at the end of the 2009 session) and a supplemental budget is not required. 

These conversations, which can be recognized as still too-early conversations at this time, fail to address the state’s remaining $2.8 billion budget problem.  As you may recall, State Treasurer McIntire publicly stated earlier this year that Washington is at risk of running out of “cash” by fall 2010 without new revenues or reductions in budget expenditures. At that point, Governor Gregoire would have the authority and legal obligation to implement across-the-board cuts. An option she has been public about in the last few days but does not desire.

An across-the-board reduction of state funding is not appealing to many policymakers. It is believed that such action could be as high as 20 percent to close the $2.8 billion budget gap.   Some believe that yesterday’s move by the Senate to move Senate Bill 6143 to conference may be a small and optimistic sign towards the passage of a supplemental budget, only time will tell.

As for now, the bills needed to implement a 2010 supplemental operating budget, 2010 supplemental capital budget, and increase revenue remain where they were this weekend, with the execption of SB 6143 which has gone to conference. In addition, the bills that Evergreen is tracking this special session also have not moved further in the process.

Week Two of Special Session Nears End; Adjournment Still Unclear

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As Special Session nears the end of week two, movement has been slow but still forward in nature.  Today, the full Senate is on the floor to move a handful of job-creation related bills, while the House is expected to return to the floor tomorrow.  The leadership of both chambers have been in negotiations for most of the week while the majority of legislators have been away as negotiations continue.

As stated earlier this week, policymakers have reached an agreement that $800 million is the revenue target. In addition, negotiations are taking place with regard to the operating and capital budgets for the 2010 supplemental session, though neither can be finalized until the elephant in the room is resolved – revenue.

Lawmakers remain gridlocked over how to raise this revenue, the primary dividing point being the implementation of a sales tax. The Senate still supports a temporary general sales-taxe increase and the House does not.

Frustration is in abundance. The Democrats are frustrated that they cannot get the votes necessary to pass an agreed upon revenue package. The Republicans are frustrated because the special session continues. The Governor is frustrated regarding all the above.

In the latest to come out of Olympia, Governor Gregoire has made it clear that she may be forced to make across-the-board cuts of 20 percent if the Legislature does not reach a budget-balancing agreement.  Gregoire has no plans to call a second special session unless a firm deal is in place. In lieu of any firm deal post the first special session, the only other choice would be across-the-board cuts.

As for now, the bills needed to implement a 2010 supplemental operating budget, 2010 supplemental capital budget, and increase revenue remain where they were this weekend. In addition, the bills that Evergreen is tracking this special session also have not moved further in the process.

Special Session Enters Second Week

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Nine days into the first special session of 2010, policymakers have reached an agreement that $800 million is the revenue target.

However, lawmakers remain gridlocked over how to raise this revenue, the primary dividing point being the implementation of a sales tax. The Senate still supports a temporary general sales-taxe increase and the House does not.

It has been reported that policymakers from both chambers agree on more than they disagree, such as closing tax loopholes and raising the cigarette tax. In addition, there is agreement on the expenditure side to make hundreds of millions of dollars in cuts and use one-time fixes, such as federal aid and reserves, to bridge the gap until the 2011-13 biennium.

As for now, the bills needed to implement a 2010 supplemental operating budget, 2010 supplemental capital budget, and increase revenue remain where they were this weekend. In addition, the bills that Evergreen is tracking this special session also have not moved further in the process.

As the Legislature convened on Monday, hopes were that an agreement would be reached by Wednesday, March 24. Now as Wednesday approaches, it looks like perhaps adjournment will have to wait either until the weekend (optimistic) or next week (reality).

Budget and Revenue Bills Emerge as the One Week Anniversary of Special Session Nears

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The somewhat slow pace by which legislators hit the ground last Monday has been replaced by at least a jog as the one week timeline for the first special session of 2010 nears. 

Over the last few days the major pieces needed for the Legislature to adjourn and go home have emerged in the process. With that said, doubts remain whether the emergence of key revenue and budget bills in the last couple of days is enough to reach adjournment by Monday, the one week deadline many legislators set out to meet when the special session was convened.

The Senate passed their proposed 2010 supplemental operating budget on the first day of the special session. Since then proposals on the $30.6 billion operating budget have been exchanged between the House and Senate in search of a compromise.  For the moment, however, the bill (ESSB 6444) awaits further consideration on the House floor. 

Yesterday, the House passed their proposed 2010 supplemental capital budget. Not much negotiation has taken place with regard to the capital budget. Leaders on the capital buget continue to wait for decisions on revenue and operating dollars to determine how much money is available for capital. The bill (ESHB 2836) awaits further consideration in the Senate Ways & Means Committee.

Also yesterday, the Senate passed, 25-18, a revenue generating bill (SESSB 6143) which is half of a two bill revenue package that would raise $809 million through June 30, 2011.  The bill is the same as the revenue bill passed by the Senate in the regular session except for two changes. The first is a reduction in a sales tax increase from a three-tenths proposed increased to two-tenths. In addition, under the revised version, realtors, research and development businesses, and nonprofit and public hospitals would not be affected by the surcharge.

Other than these changes, the bill remains the same as the original bill.  The revised bill : (1) closes dozens of tax loopholes, (2) extends the sales tax to bottled water for three years, and (3) increases the occupation tax on service businesses by one-quarter of 1 percent for three years each. Finally, the bill doubles the small business tax credit permanently for service businesses and funds the implementation of the Working Families Tax Rebate. Low-income families would start receiving checks in 2012.

The Senate’s two-bill revenue package also includes Senate Bill 6874 to increase state cigarette taxes by $1 per pack. SB 6874  still needs to be approved by the full Senate.

Today, the House passed a revised version of SESSB 6143 with a vote of 53-42. 

The revised bill passed by the House is a plan that was offerd by Governor Gregorie as a compromise between the differing House and Senate proposals. The plan would generate nearly $800 million in new revenue without a sales tax increase. Instead the plan, which includes elements from the Senate and the House proposals,  is a temporary business-and-occupations tax surcharge of 0.25 percent on some service businesses.  Finally, the plan would close tax loopholes, extend the sales tax to bottled water, and overhaul the way taxes are charged to out-of-state businesses.  The Senate and House continue to remain divided on the implementation of a sales tax, with the Senate favoring a sales taxes increase and the House opposing an increase.

Like the Senate, the House’s proposal consists of a two-bill revenue package. House Bill 2493 , like SB 6874, raises state cigarette taxes by $1 per pack and increases taxes on other tobacco products. Yesterday, the House passed HB 2493 witha  vote of 54-42. The bill now awaits further consideration on the Senate floor.

 

Special Session: Day 2

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The second day of the first 2010 special session was much more alive, actually feeling a bit like a regular session. A handful of committees held work sessions on various topics of interest and both the House and the Senate spent serious time on the floor considering legislation.

The Senate took action on eight bills today before they adjourned until 10:00 a.m. tomorrow. Of the eight bills, two are of particular interest to Evergreen.

The Senate reintroduced and passed with a vote of 30-11 Engrossed Substitute Senate Bill 6503. ESSB 6503 is the compension reduction savings bill that failed to pass the House in the regular session. The bill, which passed with a vote of 32-10 directs state agencies, including higher education institutions to achieve a $69.2 million reduction in employee compensation costs from the near General Fund through mandatory and voluntary compensation reduction activities (i.e. furloughs, leave without pay, reduced work hours, voluntary retirements and separations, layoffs, and other methods).

The second bill, which passed 32-10, Engrossed Second Substitute Senate Bill 6409 creates the Opportunity Pathways Account. Beginning in state fiscal year 2011, all net revenues from in-state lotterygames that are not otherwise dedicated to debt service on the Safeco Stadium and QwestField and Exhibition Center are dedicated to the Opportunity Pathways 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 is subject to appropriation by the Legislature, and 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.

The House took action on 14 bills prior to adjourning until 10:00 a.m. tomorrow. Of the 14 bills passed two were of interest to Evergreen.

Engrossed House Bill 2561 authorizes the State Finance Committee to issue $861 million in general obligation bonds, to be known as Jobs Act Bonds (Act), for the purpose of creating jobs by constructing capital improvements that lead to energy-related cost savings in public schools, state colleges and universities, and other public facilities. As reported earlier through this blog, EHB 2561 passed with a close vote of 54-39.

Second Substitute House Bill 2854, which passed 58-35, creates the Higher Education Loan Program (HELP).

Finally, today, the Senate’s proposed 2010 supplemental operating budget was placed on the second reading calendar on the House floor.

Governor Convenes Special Session Beginning Monday

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This evening the Washington State Legislature adjourned the regular 2010 supplemental session. Shortly thereafter, Governor Gregoire signed a proclamation to convene a special session of the Legislature beginning Monday, March 15th.

The Governor asked Senate and House leadership to focus on reaching a compromise budget and revenue package to close the state’s $2.8 billion gap, as well as legislation to create jobs.

Gregoire is urging the House and Senate to complete their work in a seven day session. The overtime period can run up to 30 days.

Legislature Adjourns 2010 Session; Special Session Announcement Expected

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At 8:40 p.m. the Washinton State Legislature adjourned the regular 2010 supplemental legislative session. The Legislature worked tireslessly through the evening to pass several major policy bills prior to adjournment, including major K-12 reform legislation. 

Despite the difficult and hard work by the Legislature to take action on several critical policy bills, the Legislature did not pass a supplemental operating budget or revenue legislation prior to adjournment this evening.  The Legislature also did not pass a supplemental capital budget. In fact neither the House nor the Senate passed their proposed supplemental capital bugets off their respective floors by sine die.

An annoucement regarding the timing and focus of a special session is expected.

One Day Until Adjournment: The Latest

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With only one day to go until the Washington Legislature must adjourn the 2010 supplemental session several major pieces necessary to allow policymakers to leave Olympia without a special session remain in motion.

Here is the latest as of this evening.

Operating Budget
The 2010 supplemental operating budget (ESSB 6444) has passed both the House and Senate and is now in conference.

Capital Budget
The House proposed 2010 supplemental capital budget (HB 2836) is on the House floor waiting for further consideration. The Senate proposed 2010 supplemental capital budget (SB 6364) passed the Senate late this afternoon.

Revenue Legislation
As of this morning three revenue-related bills have made it into the end-game. Senate Bill 6143– increases taxes and closes loopholes –  and Senate Bill 6874 and House Bill 2493– increases tobacco product taxes. 

Senate Bill 6134 has passed both the House and Senate and is now in conference.

Senate Bill 6874 is on the House floor awaiting further consideration.

This morning House Finance Committee passed House Bill 2493 which increases cigarette tax by$1 per package and equalizes taxes on other tobacco products. HB 2493 now goes to the House floor for further consideration.  

Senate Passes Proposed 2010 Supplemental Budget

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The Senate passed their proposed 2010 supplemental capital budget late this afternoon with a vote of 32-16.

The capital budget passed today includes language put forth by Sen. Fraser to provide $125,000 to Evergreen to complete a feasibility study on the College’s Biomass Gasification Project.

In addition, the Senate’s proposed capital budget:

  • Reduces appropriations for debt limit bonds by $139 million.
  • The reduction of $139 million is a combination of reducing new appropriations for the 2009-11 biennium by $73 million and the reappropriation authority for projects authorized in the prior biennia by $66 million.
  • Avoids exceeding the 9 percent constitutional debt limit.
  • Captures $48 million in savings for major higher education construction projects from competitive bids received for these projects.
  • Provides $36 million in funding for the replacement of Balmer Hall at the University of Washington.
  • Places greater reliance on Evergreen’s local funds, including the school trust and a portion of student tuition.

Senate Bill 6364, the Senate’s capital budget, was amended on the Senate floor to allow for several technical corrections in the bill. 

The bill now goes to the House for further consideration.

House Ways and Means Committee Moves Lottery Bill

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This afternoon the House Ways & Means Committee took action on Seante Bill 6409, the lottery bill for financial aid.

The Committee took action on a subsitute bill that greatly limited the programs that would benefit from the Washington Opportunity Pathways Account. The substitute bill replaces the language in the original bill with the following:

  • Expresses legislative intent to use increased lottery account revenue for stabilizing and increasing funding for higher education student financial aid.
  • Creates the Washington Opportunity Pathways account. Funding from the Account may only be used for the State Work Study, Opportunity Grant, Washington Scholars, Washington Award for Vocational Excellence (WAVE), State Need Grant, GET Ready for Math and Science, Passport to College, and College Bound.
  • Provides that all net lottery revenue not otherwise obligated for paying lottery administration, lottery prizes, debt service on Safeco Stadium, or Qwest Field and Exhibition Center, gambling education and the Education Construction Account is deposited into the Washington Opportunity Pathways Account.
  • Net revenues from shared lottery games that were previously directed to the state general fund are now directed to the Washington Opportunity Pathway Account.
  • Requires the Lottery Commission, in consultation with independent experts and the HECB, to implement strategies to actively market the state lottery as an essential contributor to Washington early education and higher education programs. 
  • Requires the Lottery Commission to report to the appropriate committees of the Legislature on key components, performance objectives, and anticipated revenue impacts of the marketing strategies by December 1, 2010.
  • Requires JLARC to complete a performance review of the Lottery Commission’s marketing expenditures and incentive pay structure by November 2010.

The substitute bill removes the recruitment of entrepreneurial researchers, innovation partnership zones, and research teams as well as early childhood education and assistance program (ECAP) as programs to receive funds placed into the Washington Opportunity Pathways Accounts.

Substitute Senate Bill 6409 now goes to the House floor for further consideration.