Governor’s Budget Released

On Thursday Governor Inslee released his proposed 2015-17 Operating and Capital budgets.  The budget – Book 2- reflects the Governor’s focus that “after more than a decade of cutting vital services and neglecting obligations,… it is time to start reinvesting in Washington”. The budget proposes a mix of spending cuts, new revenue and reserves to pay for education and services.

The Governor also submitted, as required by law, a budget – Book 1 – that would provide for a balanced budget within existing revenues.

Governor’s Proposed Biennial Operating Budget

The Governor’s proposed budget – Book 2 – invests $2.3 billion in education.  Under his proposal the budget would provide funding to reduce class sizes statewide for kindergarten through third grade, meet the state’s commitment to fully fund basic education, make major investments in early learning, target investments to increase student success and boost graduation rates and freeze resident undergraduate tuition.

The budget also makes a number of other investments:

  • Increase mental health bed capacity to prevent inappropriate boarding of psychiatric patients
  • Hire more than 100 child protective and child welfare services workers to speed up investigations of abuse and neglect and ensure safe conditions for children in foster care
  • Boost staffing levels at state parks to restore services and catch up on a backlog of maintenance work
  • Implement the Governor’s proposed market-based carbon pollution reduction program
  • Prevent and respond to oil spills along rail lines and reduce toxics in our waters
  • Provide modest pay raises for state employees

The budget proposes tax and revenue changes ($1.4 billion) in combination with reserves and reductions to support the biennial operating budget. The budget uses $450 million from reserves and includes $211 million in General Fund spending reductions. Finally the proposal maximizes federal funds and shifts general fund costs to other fund sources to save an additional $212 million.

Among the tax and revenue changes is a new capital gains tax ($798 million) on the sale of stocks, bonds, and other assets to increase the share of state taxes paid by the wealthiest taxpayers, new revenue from a market-based carbon pollution reduction plan ($380 million), and a repeal of a sales tax exemption for trade-ins valued over $10,000 ($105 million).

 Higher Education

The Governor’s proposed budget freezes tuition for undergraduate, resident students for the biennium. No additional dollars are provided to offset the tuition freeze. The Governor will also introduce legislation to: (1) return tuition setting authority to the budget, (2) eliminate differential tuition, (3) repeal negotiation of Higher Education performance plans, (4) repeal publication of the 60th percentile global challenge states comparisons, and (5) amend financial aid mitigation provided with tuition setting authority so that any institution that exercised tuition setting authority above levels assumed by the legislature in 2011-13 and 2013-15 will continue to provide the financial aid mitigation.

In addition the budget makes an investment in math and science for each of the public baccalaureate institutions and the CCTCs and provides compensation at 3% and 1.8% for classified, professional, and faculty employees. The proposed funding only recognize the general fund portion. The remaining funding to support the compensation request is presumed to come from tuition but the budget prohibits increases in resident undergraduate tuition. This is also reflected in the health benefit increase. The budget also makes a handful of specific investments in other programs including the health professions, ocean acidification, and renewable energy.

Finally the budget maintains current funding for the State Need Grant and increases funding for the College Bound Scholarship program to recognize caseload increases.

It is worth noting that the Governor’s proposed budget without new revenues would result in a 10% reduction to higher education.

Evergreen

Under the Governor’s budget tuition would be frozen for undergraduate, resident students for the biennium at Evergreen. No additional investments are made to the College to offset the tuition freeze.

In addition the budget invests in math and science at Evergreen and provides compensation at 3% and 1.8% for classified, professional and faculty employees. The funding levels for compensation only recognizes the general fund portion, or just over a third of the cost. The remaining funding to support the compensation request is presumed to come from tuition but the budget prohibits increases in resident undergraduate tuition. This would require institutions to fund the rest from institutional dollars. For Evergreen this is $1.82 million. This split is also reflected in the health benefit increase. Evergreen would need to provide an estimated $169k.

Finally the budget requires Evergreen to report on STEM outcome measures, provides funding for several Washington State Institute for Public Policy studies in Evergreen’s allocation, and retains budget language in support of the Longhouse.

It is worth noting that the Governor’s proposed budget without new revenues would result in a 10% reduction to higher education, this would be a reduction of $2.13 million annually to Evergreen.

Capital Budget
Governor Inslee also proposed a biennial capital budget for higher education. The Governor provided funding for several projects across higher education. This includes funding for three projects at Evergreen – Lecture Hall Renovation Construction, Lab I Basement Construction funding, and Seminar I Renovation Predesign.  The budget also provides authorization to purchase the Tacoma Campus property.

In addition the budget includes funds to support facilities preservation, minor works, and preventative facility maintenance and building system repairs.

Next Steps

The Governor’s budget is the first of many budgets that will be released to address the 2015-17 biennium. While the Governor’s budget is the first step in the budget development process, there will be at least four more legislative budgets to review as the legislative session progresses.

The Washington Legislature will convene on January 12 to begin its work to develop a biennial budget.  Over the next 105 days, the House and Senate will hold work sessions and public hearings on the gubernatorial proposed budgets as well as the budgets put forth by each chamber before finalizing a conference budget.

Washington Senate Democrats Announce Commitee Assignments

This week the Washington Senate Democrats announced committee leadership and membership for the upcoming session.

Senator Jeanne Kohl-Welles will be the ranking member on the Higher Education Committee.  Kohl-Welles will be joined by Senators David Frockt and Marko Liias.

In addition, Senator Jim Hargrove will continue as the ranking member on Senate Ways & Means, Senator Karen Keiser will continue as assistant ranking on Ways & Means for capital, and Senator Kevin Ranker will continue as assistant ranking on Ways & Means for operating.

House Republicans Name Committee Leaders and Members

This week the Washington House Republicans announced committee leadership and membership for the upcoming session.

Representative Hans Zeiger (Puyallup) will be the ranking member and Representative Larry Haler (Richland) will be the assistant ranking leader on the Higher Education Committee.  Zeiger and Haler will be joined by Representatives Hargrove, Holy, Stambaugh, and Van Werven.

In addition, Representative Richard DeBolt will continue as ranking leader of the House Capital Budget committee, Representative Bruce Chandler will continue as the ranking member on the Appropriations committee, and Representative Terry Nealey will be the ranking member on Finance.

Governor Releases Education Plan

Late yesterday Governor Inslee released his plan for education for the 2015-17 biennium. The plan, which extends across the continuum including early learning, K-12 and higher education, provides a $2.3 billion investment in the success of students from preschool to college.

In a statewide virtual town hall this evening, Governor Inslee shared the slate of education proposals.  The Governor’s budget would expand the state’s preschool program and provide $1.3 billion for basic education funding.  With regard to higher education, the Governor’s proposal:

  • Continues the current tuition freeze for resident, undergraduate students
  • Provides funding to meet increased demand for the state’s College Bound Scholarship program
  • Provides funding to meet the state’s contribution to the public-private Opportunity Scholarship program, which offers financial aid to qualified students in the STEM and health care fields
  • Expands advanced computer science and engineering programs at the research universities
  • Increases production of math and science graduates at the regional universities and Evergreen
  • Funds the Mathematics, Engineering, Science Achievement (MESA) program at the community colleges
  • Increases job training and basic education access at the community and technical colleges for adults without a high school diploma
  • Targets industry investments to add aerospace apprenticeships, operate the composite wing incumbent worker training program and offer maritime licensing training program at the community colleges.

The overview is part of a week long rollout of the Governor’s 2015-17 biennial budget.  On Tuesday the Governor will release details regarding transportation followed by climate change on Wednesday. The full budget will be released on Thursday morning.

WA House Democrats Announce Committee Leadership and Membership

This afternoon the Washington House Democrats announced committee chairs and vice chairs and membership for the upcoming session.

Representative Drew Hansen (Bainbridge Island) will chair and Representative Gerry Pollett (Seattle) will vice-chair the House Higher Education Committee.  Hansen and Pollett will be joined by Representatives Bergquist, Reykdal, Sells, Tarleton and the to-be-named representative of the 30th district.

In addition, Representative Hans Dunshee (Snohomish) will continue as chair of the House Capital Budget committee, Representative Ross Hunter (Medina) will chair the Appropriations committee, and Representative Reuven Carlyle (Seattle) will chair the Finance committee.

WA Senate Releases Committee Leaders and Committee Structure

This week the Washington State Senate released the committee structure for the 2015 session.  The committee structure will resemble the committees from the prior legislative session with the exception of a new committee.

The Senate Accountability and Reform Committee, to be chaired by newly elected Senator Mark Miloscia, will focus on issues involving the management of government including transparency, efficiency programs and strategic planning.

Committee leadership, in general, provides for continuity from last session. Senator Barbara Bailey will continue to chair the Senate Higher Education Committee.  In addition, Senator Andy Hill will Chair the Senate Ways & Means Committee and Senator Jim Honeyford will continue as Vice Co-Chair focusing on the capital budget.

Some of the changes for the 2015 session include:

  • Senator Michael Baumgartner will replace Senator Randi Becker as Vice Chair on Higher Education
  • Senator John Braun as Vice Co-Chair replacing Senator Michael Baumgartner and the addition of Senator Bruce Dammeier as Vice Chair with a focus on education finance
  • Newly-elected Senator Judy Warnick will replace Senator Brian Hatfield as chair of Agriculture, Water and Rural Economic Development
  • Senator Mike Baumgartner will replace former Senator Holmquist Newbry as Chair of Commerce and Labor
  • Senator Don Benton will replace the former Co-Chair structure of the Financial Institutions and Insurance Committee replacing Co-Chair Steve Hobbs and Senator Jan Angel will take on the role as Vice Chair
  • Senator Mark Miloscia will replace Senator Kirk Pearson as Vice Chair of Human Services and Corrections
  • Senator Brian Dansel will serve as Vice Chair for Natural Resources and Parks
  • Senator Sharon Brown will replace Senator John Braun as Chair of Trade and Economic Development and Senator John Braun will replace Senator Jan Angel as Vice Chair
  • Senator Joe Fain will join Transportation as Vice Chair for the transportation budget and Senator Don Benton as Vice Chair.

 

Governor’s Budget Out Next Week

Next week the Governor will roll out his biennial budgets over several days.

The week will kick-off with education. The Governor will make public his plans to make investments in education including early learning, K-12, and higher education.

Each following day the Governor will release additional parts of his proposed budget – Tuesday – transportation, Wednesday – climate change, and Thursday – the entire proposed biennial budget.

Reports suggest there are some things to watch for:

  • Major investments in early learning, kindergarten through high school, and STEM training
  • Investments to keep college affordable
  • New revenue

Stay tuned…

WA House Announces Committee Structure; Chairs and Committee Members to Follow

This week the House Democrats released a new committee structure for the 2015 session. The structure will eliminate, create and refocus committees.  Overall the number of committees will shrink from 23 to 21.

Gone are two of the three appropriation subcommittees on health and human services and education as well as the government accountability and oversight panel.

A new committee will make its debut this session the House Commerce and Gaming Committee. The Committee will consider issues related to commerce in alcohol, tobacco, and marijuana and issues relating to the regulation and oversight of gaming.

Finally some committees will see a change in focus.  The House State Government Committee will absorb the issues handled by the former Government Operations and Elections panel.  The Labor and Workforce Development Committee will be changed to the Labor Committee and workforce development issues will be absorbed by the House Higher Education Committee.  The former Appropriations Subcommittee on General Government will see a new title (General Government and Information Technology) and a revamped focus.

It is anticipated that the leaders and members of the House committees could be identified as early as this week in both the House and Senate. The Senate will also reveal its committee structure.

WA Student Achievement Council Releases Strategic Action Plan

Building on the work of the Council’s 2013 Roadmap report, the 2014 Strategic Action Plan outlines important and immediate steps to meet the state’s attainment goals by 2023:(1)  All adults in Washington, ages 25-44, will have a high school diploma or equivalent and (2) at least 70 percent of Washington adults, ages 25-44, will have a postsecondary credential.

The Action Plan sets forth seven recommendations:

  • Fulfill caseload requirements for the College Bound Scholarship
  • Protect maintenance-level funding for public two- and four-year institutions
  • Serve more State Need Grant-eligible students
  • Expand the reach of dual-credit opportunities
  • Support underrepresented students
  • Reinvest in State Work Study
  • Develop an affordability framework.

The funding and policy recommendations in this plan were developed with input from stakeholders across the sectors, including K-12, community and technical colleges, and public and private baccalaureate institutions. The recommendations also align with the Council’s 2013 Roadmap report.

 

WA Senate Majority Coalition Caucus Elects Leadership

Earlier this week the Majority Coalition Caucus (MCC) elected Senator Mark Schoesler as the Senate Majority leader. Schoesler previously served as Senate GOP leader.

The Caucus retained three top leaders from the prior session. Linda Evans Parlette of Wenatchee will remain caucus chair, Joe Fain of Auburn floor leader and Ann Rivers of La Center whip. In addition the MCC supported retaining Tim Sheldon (D) as the Senate’s president pro tempore a position elected by the full Senate.
Finally, the MCC made some changes to leadership:

  • John Braun was elected deputy leader, replacing Don Benton
  • Jan Angel was elected caucus vice chair, replacing Bruce Dammeier
  • Mark Miloscia was elected, replacing John Braun as deputy whip
Read more here: http://www.theolympian.com/2014/12/01/3456017_mark-schoesler-elected-senate.html?sp=/99/101/112/&rh=1#storylink=cpy
Read more here: http://www.theolympian.com/2014/12/01/3456017_mark-schoesler-elected-senate.html?sp=/99/101/112/&rh=1#storylink=cpy