In signing the budget bill, Governor Gregoire vetoed a number of sections. The vetoes fall into the following criteria:
Funding for bills that did not pass the Legislature. This funding lapses and goes towards increasing the ending fund balance.
Deleting provisos so agencies have more flexibility in spending. By getting rid of the proviso, it doesn’t mean that the program/service won’t happen. If the agency needs to reduce spending, it allows for their ability to make more reductions across all spending.
Technical problems with spending/transfers
Policy choices
Allowing more funding for DSHS in the 2009 supplemental budget
In total, the net effect of these changes is to reduce the Near General Fund ending fund balance by about $82 million, leaving it at about $670 million.
Examples of the Governor's vetoes:
Provisos that give agencies more flexibility: Medicaid Services - Podiatry, adult dental services, and family planning nurses, were provisoed.
Technical issues: Actuary Health Care Study - $750,000 had been provided to do a comprehensive study of health care costs of all governmental entities in the state pension systems. The fund source was from a Health Care Authority account, which can’t be spent for purposes such as this study.
Policy choices: Performance Audits - The Governor vetoed sections dealing with transfers from the Performance Audit Account. $29.2 million had been transferred into the General Fund. Of this amount, about $15 million is from prior biennia and the State Auditor had agreed to part with this funding. The Governor is directing OFM to put these funds in an unallotted status, so the 2010 supplemental budget will be able transfer these funds. The remaining dollars will allow the State Auditor to have full funding for performance audits in the 2009-11 biennium.
2009 Supplemental: The Governor vetoed several sections of Department of Social and Health Services appropriations. By vetoing these sections, the department gained about $32.3 million in additional funding. There is some concern that DSHS will not be able to close out the 2007-09 biennium without these extra dollars.
You can read news about the final budget here and here, where Jerry Cornfield of the Everett Herald ponders whether the budget will carry us through the biennium if revenues continue to fall. A new revenue forecast is due mid-June.
The parade of bill signings continue. Yesterday, of particular note, the Governor signed the domestic partnership bill.
Today, the Governor signed HB 2261, the basic ed funding bill that essentially redefines "basic education" and sets in motion the rewrite of the funding formulas that drive out dollars to school districts. Because the state is constitutionally bound to fund whatever it defines as "basic education," advocates are happy to see the new definition linked to graduation requirements that will make students much more college- and work-ready.
The Governor did veto two portions of the bill - the inclusion of early learning for at-risk kids and additional funding for highly capable students. The Governor made it clear she supports such efforts but does not think this is the appropriate way to fund those programs.
More than a hundred people turned up for the bill signing including parents, children, PTA members, and other advocates.
Historically, minority and women owned businesses have been denied access to capital, and that lack of capital is a key barrier to the development of minority and women owned businesses.
In response, the legislature passed the 1993 Minority and Women Owned Business Assistance Act, which created the Linked Deposit Program.
The program links the deposit of state funds to loans made by participating financial institutions to qualified veteran, minority and women-owned businesses. The deposit of state funds is made at below market rates. The savings are then passed on by the bank to the Linked Deposit borrowers in the form of an interest rate reduction.
The Linked Deposit Program has provided access to more than $340 million in bank loans for hundreds of small businesses. But the program became untenable for participating banks because of historically low interest rates.
Rep. Bob Hasegawa and State Treasure James McIntire led an effort to restart the program.
Current statute requires banks to pay at least 2 percent interest on the state’s certificates of deposits while also requiring them to issue loans at lower-than market rates. The low-interest rate environment has forced many banks to drop out of the program because they were required to pay the state an above-market rate on the deposits.
Hasegawa's bill removes the 2 percent minimum-interest requirement and adds flexibility for the treasurer so the linked deposit program overall can work in the current market environment.
Photo: Gov. Gregoire signs HB 1167 on May 7, 2009. Front: Gov. Chris Gregoire, Rep. Bob Hasegawa. Back: Philip Brady, Senate Staff; Marissa Chavez, Legislative Assistant to Rep. Hasegawa; Diane Smith, Senate Staff Coordinator and Counsel.
In response to recent major floods in Washington state, Rep. Scott White sponsored House Bill 1967 to stop expansion of urban growth areas into designated one hundred year floodplains.
These are the areas adjacent to rivers and streams that are subject to frequent or regular flooding, and are generally considered unstable and potentially dangerous areas. White’s measure only applies to the larger river systems in western Washington and has focused exceptions for communities that already have significant development on floodplains.
"This is a common sense approach that will help us save lives and property," said White. "Encouraging smart growth by limiting development in flood plains benefits our state by creating safer communities and reducing the costs to taxpayers that come with flooding disasters."
Photo - Gov. Gregoire signs HB 1967 on May 5, 2009. From left to right: Tom Clingman, Ecology Shorelands & Environmental Assistance Program; Carl Schroeder, HDC Policy staff; Joe Tovar, Washington Chapter, American Planning Association; Governor Christine Gregoire; April Putney, Futurewise; Rep. Scott White, 46th Legislative District
House Democrats are working on issues that matter: creating good jobs and a competitive business climate, building strong schools, protecting the environment and making government more accountable and efficient.
Democracy works best when citizens are accurately informed and fully engaged. We hope this blog helps you learn more about what House Democrats are doing to build a better future for all of us who live, work, and do business in this state.
