Post-Session Wrap Up and Beyond

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In the early hours of Tuesday morning, the Washington Legislature adjourned the first special session of 2010. The 30-day special session came on the heels of the constitutionally required 60-day supplemental session because the Legislature failed to find consensus on revenue and appropriations.

The stalemate between the House and Senate came to an end on the last day of the 30-day special session. The Legislature adopted a two-part revenue package and found agreement on the final 2010 supplemental operating and capital budgets.

The Legislature implemented a four-prong approach to solving the state’s $2.8 billion budget shortfall. The Legislature passed two-bills (SB 6143 and HB 2493) that combined will generate $757 million in revenue by closing tax loopholes and increasing taxes.

In addition, the Legislature reduced funding for state programs and services by $755 million, including a reduction in funding of $73 million to institutions of higher education near the minimum level required for the receipt of federal stimulus funds (SB 6444). The Legislature also incorporated approximately $618 million of approved/anticipated additional federal relief to Washington State and made $461 million in additional transfers from various funds to increase General Fund-State resources.

In the end, the final combination of revenue and budgets for the 2010 supplemental session was a mixed bag for higher education and The Evergreen State College. As the details shared in prior blogs and future analysis will show, while student financial aid was protected and some investments were made, higher education funding again experienced a decline at the state level. So what is beyond the 2010 legislative session for the Office of Governmental Relations at Evergreen. Contrary to what many may think there is little time for a break.

Now that the 2010 Legislature has completed its business and has adjourned we will prepare our annual Legislative Report. The Report – which includes a full review of the 2010 budgets and revenue package and a comprehensive list of of the legislation that Evergreen tracked – will be posted to the Office of Government Relations website.

In the following weeks we will share with you actions the Governor takes on the dozen or so bills passed during special session.

Legislative Session 2011

In the following months we will work with Evergreen’s Office of Budget and Operations to prepare for the 2011 Legislative Session- less than a year away. Our eyes will be on the initiative process as the November elections approach. Tim Eyman, a leader in the initiative process, has already filed several separate measures as of yesterday (April 13). Each measure seeks to repeal a separate slice of the $631 million in new revenues passed by the Legislature on Monday. Eyman’s measures target: (1) the 28 cent per-six-pack increase on mass-marketed beer; (2) the 2 percent-per-can tax increase on soda/pop; (3) the $1 per-pack increase on cigarettes and increases on other tobacco products; (4) the sales tax on candy and bottled water; and (5) the B&O tax on service businesses.

The filing of the measures is preliminary and it may be months before decisions are made regarding what measures to pursue. Beyond the initiative process we will also keep you posted with regard to the latest news regarding the 2010 elections. Ninety-eight seats in the House and half the Senate will be up for election this fall. In addition, U.S. Representative Brian Baird, which represents southern Washington, has decided to step down opening his seat for someone new.

Finally, we will continue to keep information coming with regard to federal higher education- and education-related issues, topics, and reports.

So much to do…so little time…lets get started!

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 Majority Leader Lynn Kessler Announces She Will Not Run Again

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As the Washington Legislature entered the early hours of the 30th day of the first special session of 2010, Representative Lynn Kessler, the House Majority Leader, announced that she would not run again for her House seat this fall.

Representative Kessler ends her legislative career after 18 years of service to the citizens of Washington. She has been a strong advocate for women’s rights and access to an open and transparent government.

She will be greatly missed for her leadership, strength, and kindness.

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.