Want to learn more about the upcoming legislative session and the budget challenges facing our state but can't make it to Olympia? Well, here's your chance to do so from the comfort of your own home or coffee shop or wi-fi hotspot - pretty much anywhere you sit and stare at a computer screen.
In conjunction with the upcoming tele-town halls for Reps. Brendan Williams and Ross Hunter, we'll be liveblogging the events right here. So follow along, submit questions or comments, and bask in the electric glow of Democracy's future...
Monday, December 14th: Brendan Williams
Watch the replay here
Tuesday, December 15th: Ross Hunter
Or follow along on Twitter:
@hdccomm
#hdccomm
#brendanwilliams
#williamstownhall
@rosshunter
#huntertownhall
Thursday, December 10, 2009
Wednesday, December 9, 2009
Budget balanced, but "unjust"
No more Basic Health. No more maternity services. No more levy equalization. No more prescription drug assistance for low-income seniors. No more GAU.
Those were just a sample of the cuts Gregoire laid out in her press conference that ended just moments ago. In presenting her budget she said, "Let me be very clear: I do not support this budget. As required by law, it is balanced. For me, it is unjust.”
This budget is called "Book I" by insiders, as it is considered the first budget, required to be balanced with no new revenue.
Here's a breakdown of how Gregoire proposes to bridge the $2.6 billion shortfall without new revenue.
Use of $904 million from "other" revenue - This includes $229 million from the Budget Stabilization Account (Rainy Day Fund), $110 million from the Savings Incentive/Education Savings Accounts (funds agencies didn’t spend in the previous year), $52 million from PEBB Reserve (state health benefits) and lowering the Ending Fund Balance to $310.5 million.
$1.7 billion in program cuts:
K-12 - $375 million including the elimination of levy equalization funding, all-day kindergarten, I-728 (classroom size initiative) and K-4 staffing enhancements.
Higher Education - $370 million including reducing the State Need Grant, across-the-board reductions, and suspending the Work Study program and eliminating other smaller financial aid programs.
Other Education - $13.8 million including eliminating ECEAP (early learning) for 3- year-olds, eliminating the Career and Wage Ladder, and reducing funding for the Arts Commission.
Health and Human Services - $850 million including eliminating the Basic Health Plan and the General Assistance program, suspending Maternity Support Services, and reducing Apple Health Eligibility to less than 205% of Federal Poverty.
Natural Resources - $25 million including eliminating funding for watershed planning, reducing funding for water resource activities, and reducing Fair Funding.
General Government - $41 million including reductions in growth management grants, state library services, and the Crime Victims Benefits program.
FTEs: Decrease state employees by an additional 1,500 FTEs. From Fiscal Year 2009 (last year of the prior biennium) through Fiscal Year 2011 (second year of this biennium), it is anticipated that state FTEs will decrease by 4,500.
Mandatory Spending: This budget spends an additional $760 million for caseload increases and other mandatory costs like forest fires, increased utilization of medical services, etc.
Additional Spending: There is about $86.5 million in additional spending in the budget that is not related to mandatory increases. It includes restoring $12 million for Juvenile Rehabilitation, $11.5 million for worker retraining in the community/technical colleges, and $50.7 million for state employee health insurance to address a shortfall in the PEBB funds.
The Governor stated she will introduce another budget in January in which she will "buy back" or restore some of these cuts using increased revenue. This will be her "Book II" budget.
She did not announce which revenue sources she will endorse but expressed that she is very conscious of not wanting any new revenue source to interfere with or slow down our state's economic recovery. When asked for an example of such a source, she cited an increase in the B&O tax.
Gregoire's list of buybacks would cost about $700 million. Her list includes:
You can read the Governor's press release and related budget materials here.
Those were just a sample of the cuts Gregoire laid out in her press conference that ended just moments ago. In presenting her budget she said, "Let me be very clear: I do not support this budget. As required by law, it is balanced. For me, it is unjust.”
This budget is called "Book I" by insiders, as it is considered the first budget, required to be balanced with no new revenue.
Here's a breakdown of how Gregoire proposes to bridge the $2.6 billion shortfall without new revenue.
Use of $904 million from "other" revenue - This includes $229 million from the Budget Stabilization Account (Rainy Day Fund), $110 million from the Savings Incentive/Education Savings Accounts (funds agencies didn’t spend in the previous year), $52 million from PEBB Reserve (state health benefits) and lowering the Ending Fund Balance to $310.5 million.
$1.7 billion in program cuts:
K-12 - $375 million including the elimination of levy equalization funding, all-day kindergarten, I-728 (classroom size initiative) and K-4 staffing enhancements.
Higher Education - $370 million including reducing the State Need Grant, across-the-board reductions, and suspending the Work Study program and eliminating other smaller financial aid programs.
Other Education - $13.8 million including eliminating ECEAP (early learning) for 3- year-olds, eliminating the Career and Wage Ladder, and reducing funding for the Arts Commission.
Health and Human Services - $850 million including eliminating the Basic Health Plan and the General Assistance program, suspending Maternity Support Services, and reducing Apple Health Eligibility to less than 205% of Federal Poverty.
Natural Resources - $25 million including eliminating funding for watershed planning, reducing funding for water resource activities, and reducing Fair Funding.
General Government - $41 million including reductions in growth management grants, state library services, and the Crime Victims Benefits program.
FTEs: Decrease state employees by an additional 1,500 FTEs. From Fiscal Year 2009 (last year of the prior biennium) through Fiscal Year 2011 (second year of this biennium), it is anticipated that state FTEs will decrease by 4,500.
Mandatory Spending: This budget spends an additional $760 million for caseload increases and other mandatory costs like forest fires, increased utilization of medical services, etc.
Additional Spending: There is about $86.5 million in additional spending in the budget that is not related to mandatory increases. It includes restoring $12 million for Juvenile Rehabilitation, $11.5 million for worker retraining in the community/technical colleges, and $50.7 million for state employee health insurance to address a shortfall in the PEBB funds.
The Governor stated she will introduce another budget in January in which she will "buy back" or restore some of these cuts using increased revenue. This will be her "Book II" budget.
She did not announce which revenue sources she will endorse but expressed that she is very conscious of not wanting any new revenue source to interfere with or slow down our state's economic recovery. When asked for an example of such a source, she cited an increase in the B&O tax.
Gregoire's list of buybacks would cost about $700 million. Her list includes:
- Basic Health Plan
- Apple Health for children
- A scaled-back version of General Assistance (6 month eligibility with $250/month grants)
- Levy equalization
- State Need Grant (financial aid for college)
- ECEAP slots and all-day kindergarten
- Adult medical, dental, vision and hospice programs
- Developmental disability and long-term care services
- Local Government Finance: She would like to give local governments more flexibility in how they use their revenues.
- Levies: She suggests allowing school districts to raise their levy lids up to 36 percent.
- Hospitals: She endorses the proposal from the Washington Hospital Association to set up a hospital assessment fee, which allows the state to capture additional federal funding.
- Juvenile Rehabilitation: None will be closed, however there will be downsizing at Maple Lane, Green Hill and Naselle, with additional community placements instead.
- Corrections: Several institutions will close – Pine Lodge, Larch and Ahtanum; McNeil will be converted to minimum security; and the stacks at the Walla Walla penitentiary will be closed and rebuilt. Additional beds will be opened at the new prison at Connell, where costs are lower.
- Developmental Disabilities: Frances Haddon Morgan Center would close in 2011 and Rainier School in 2014.
You can read the Governor's press release and related budget materials here.
Governor to release all-cuts budget proposal this morning
If you've been paying any attention to state politics over the past several months, you already know that the national recession continues to pummel state budgets across the nation. As typically happens in a recession, revenues shrink while caseloads in state services grow. Here in Washington, the result is a projected $2.6 billion shortfall for the last half of the two-year 2009-2011 budget.
This morning at 9, Governor Gregoire will reveal her budget proposal. As required by law, it will be a balanced budget based on existing revenue. In other words, it will be an all-cuts budget, and it follows on the heels of a budget that already included about $4 billion in cuts.
Gregoire has stated plainly that the kinds of cuts required to balance this budget is unacceptable. Her office prepared a "Budget Story" presentation that lays out several examples of what it would take to cut $2.6 billion from the remaining biennial budget.
If we eliminated all mental health and disability services, for example, we'd only save $1.6 billion. Want to eliminate all state-funded environmental clean-up efforts and parks and recreation services? That will save us $364 million. Shut down the Department of Commerce? There's another $103 million. You get the picture - $2.6 billion is a tough number to get to.
Mumblings that programs such as financial aid for college, levy equalization for property-poor school districs, the Basic Health Program and General Assistance Unemployable might be completely eliminated have a lot of folks very, very worried.
Tune in to TVW to watch Gregoire's press conference. We'll post additional details later today.
This morning at 9, Governor Gregoire will reveal her budget proposal. As required by law, it will be a balanced budget based on existing revenue. In other words, it will be an all-cuts budget, and it follows on the heels of a budget that already included about $4 billion in cuts.
Gregoire has stated plainly that the kinds of cuts required to balance this budget is unacceptable. Her office prepared a "Budget Story" presentation that lays out several examples of what it would take to cut $2.6 billion from the remaining biennial budget.
If we eliminated all mental health and disability services, for example, we'd only save $1.6 billion. Want to eliminate all state-funded environmental clean-up efforts and parks and recreation services? That will save us $364 million. Shut down the Department of Commerce? There's another $103 million. You get the picture - $2.6 billion is a tough number to get to.
Mumblings that programs such as financial aid for college, levy equalization for property-poor school districs, the Basic Health Program and General Assistance Unemployable might be completely eliminated have a lot of folks very, very worried.
Tune in to TVW to watch Gregoire's press conference. We'll post additional details later today.
Friday, December 4, 2009
Looking into the transportation crystal ball
We’ve mentioned before that 2009 is a banner year for transportation investments. The construction season that just ended was the largest in state history, as our investments from 2003 and 2005 hit their peak. The federal economic recovery funding also provided a boost.
At the same time, as we peer into the future, challenges emerge. Page nine of the transportation budget passed last spring shows that revenue projections over the 16-year planning horizon dropped a couple of billion dollars over 2008’s projections.
Why? The major factor is the changing habits of drivers. People are driving less and are using more fuel-efficient vehicles, which is causing fuel-tax revenue to dip. Moreover, fuel taxes are flat rates, resulting in decreased purchasing power as years go by. These fuel taxes revenues form the large part of the transportation budget.
Recognizing these long-term trends, transportation leaders last session called for a study of potential financing methods for the future. The Legislature’s Joint Transportation Committee earlier this week heard the findings of the “draft final” report on this topic, prepared by a transportation consulting team.
The report shows some drastic numbers. For example, in 2025 the average driver will pay about 15 percent less in taxes (in 2025 dollars) compared to 2009. Adjusted for inflation, that’s about 38 percent less! The reduced revenue accounts for about $10 billion.
How to address this issue? The report explores myriad options, including fuel, system use, vehicle and driver funding methods. At this point, the report is intended simply as a look to the future, along with an array of potential options for the Legislature to consider in future sessions. Nothing is binding, and aside from starting a dialog, little to no action is expected this coming session. For now, it’s an intriguing look at our challenges and opportunities for funding the transportation system of Washington’s future.
At the same time, as we peer into the future, challenges emerge. Page nine of the transportation budget passed last spring shows that revenue projections over the 16-year planning horizon dropped a couple of billion dollars over 2008’s projections.
Why? The major factor is the changing habits of drivers. People are driving less and are using more fuel-efficient vehicles, which is causing fuel-tax revenue to dip. Moreover, fuel taxes are flat rates, resulting in decreased purchasing power as years go by. These fuel taxes revenues form the large part of the transportation budget.
Recognizing these long-term trends, transportation leaders last session called for a study of potential financing methods for the future. The Legislature’s Joint Transportation Committee earlier this week heard the findings of the “draft final” report on this topic, prepared by a transportation consulting team.
The report shows some drastic numbers. For example, in 2025 the average driver will pay about 15 percent less in taxes (in 2025 dollars) compared to 2009. Adjusted for inflation, that’s about 38 percent less! The reduced revenue accounts for about $10 billion.
How to address this issue? The report explores myriad options, including fuel, system use, vehicle and driver funding methods. At this point, the report is intended simply as a look to the future, along with an array of potential options for the Legislature to consider in future sessions. Nothing is binding, and aside from starting a dialog, little to no action is expected this coming session. For now, it’s an intriguing look at our challenges and opportunities for funding the transportation system of Washington’s future.
Boards and commissions on the chopping block
The House State Government & Tribal Affairs Committee will meet today at 1:30 to review plans for saving more public dollars. As alluded to in our earlier post, the committee is scheduled to discuss the potential elimination of additional state boards and commissions.
In the 2009 session earlier this year, the Legislature passed Engrossed Senate Bill 5995 to abolish 18 of these public bodies. Governor Gregoire announced yesterday that she’s eliminating 17 more boards and commissions by executive order and is asking the Legislature to axe another 78 when they convene for the 2010 session in January.
Gregoire's office is sending folks to today's committee meeting to discuss her proposal. Committee chair Rep. Sam Hunt wants the committee to hit the ground running with specific cost-saving proposals.
The committee will also hold a work session to talk about the Washington Management Service (WMS), which was set up in 1993 and “… is a decentralized personnel system established separately for civil service managers in state government. Agencies have delegated authority under the law to create management positions. [The WMS] recognizes the unique nature of management positions and the importance of strong management skills to effective state government.”
Regarding the Washington Management Service and other aspects of state government, the Legislature earlier this year approved and the governor signed Engrossed Substitute House Bill 2049. This legislation calls for yearly public reports from every state agency on the number of classified workers the agency employs, as well as the agency’s WMS employees and the agency’s exempt employees. The agencies must also report the number and cost of bonuses and performance-based incentives that have been awarded to agency staff.
In the 2009 session earlier this year, the Legislature passed Engrossed Senate Bill 5995 to abolish 18 of these public bodies. Governor Gregoire announced yesterday that she’s eliminating 17 more boards and commissions by executive order and is asking the Legislature to axe another 78 when they convene for the 2010 session in January.
Gregoire's office is sending folks to today's committee meeting to discuss her proposal. Committee chair Rep. Sam Hunt wants the committee to hit the ground running with specific cost-saving proposals.
The committee will also hold a work session to talk about the Washington Management Service (WMS), which was set up in 1993 and “… is a decentralized personnel system established separately for civil service managers in state government. Agencies have delegated authority under the law to create management positions. [The WMS] recognizes the unique nature of management positions and the importance of strong management skills to effective state government.”
Regarding the Washington Management Service and other aspects of state government, the Legislature earlier this year approved and the governor signed Engrossed Substitute House Bill 2049. This legislation calls for yearly public reports from every state agency on the number of classified workers the agency employs, as well as the agency’s WMS employees and the agency’s exempt employees. The agencies must also report the number and cost of bonuses and performance-based incentives that have been awarded to agency staff.
Today's committee meeting line-up
Today marks the End of (Assembly) Days with committee meetings in full swing until 3:30 today. The next time legislators convene in Olympia will be for the start of the 2010 session on January 11.
This morning, the Education Committee is talking about numerous issues including the status of changes to the state's student assessment program (formerly known as the WASL).
At 10, the Human Services Committee will take a look at the savings and efficiencies underway in the GA-U program. GA-U is a cash and health care assistance program for people who are physically or mentally are incapable of working, and is one of the programs considered at-risk in the midst of growing budget challenges.
The Finance Committee will meet at 1:30. Their agenda includes a look at the 2009 Performance Review of Tax Preferences. Tax preferences (also called tax breaks or tax incentives, depending on your point of view) are essentially money the state is choosing not to collect for some reason, usually to help a struggling industry or lure new businesses to the state. These will get very close scrutiny as legislators determine whether we can afford to keep many of them in place.
And on the heels of some major news from Governor Gregoire yesterday, the Government & Tribal Affairs Committee will be looking at the elimination of certain state boards and committees. More details to follow in a separate post.
As always, follow the action on TVW.
This morning, the Education Committee is talking about numerous issues including the status of changes to the state's student assessment program (formerly known as the WASL).
At 10, the Human Services Committee will take a look at the savings and efficiencies underway in the GA-U program. GA-U is a cash and health care assistance program for people who are physically or mentally are incapable of working, and is one of the programs considered at-risk in the midst of growing budget challenges.
The Finance Committee will meet at 1:30. Their agenda includes a look at the 2009 Performance Review of Tax Preferences. Tax preferences (also called tax breaks or tax incentives, depending on your point of view) are essentially money the state is choosing not to collect for some reason, usually to help a struggling industry or lure new businesses to the state. These will get very close scrutiny as legislators determine whether we can afford to keep many of them in place.
And on the heels of some major news from Governor Gregoire yesterday, the Government & Tribal Affairs Committee will be looking at the elimination of certain state boards and committees. More details to follow in a separate post.
As always, follow the action on TVW.
Thursday, December 3, 2009
Rescue tug to the rescue…again!
Last session, the Legislature appropriated $3.6 million to fully fund an emergency response tug stationed at Neah Bay. It was the last time taxpayers will pay to protect the Strait of Juan de Fuca from oil spills and other environmental accidents; beginning in July of 2010, the maritime industry will be required by law to fund the vessel year-round. Rep. Kevin Van De Wege sponsored the House version of the legislation that Governor Gregoire signed on the 20th anniversary of the Exxon-Valdez oil spill.
An incident just this week off the Washington coast underscores how important a permanently-funded emergency response tug is for our state. The state Department of Ecology says that on Wednesday a chemical tanker lost power about 45 miles off the coast. The rescue tug Hunter left its berth at Neah Bay and is heading towards the disabled tanker, prepared to render assistance if needed.
In September, Rep. Van De Wege, along with Speaker Chopp and members of the state Senate, had a tour on board the Hunter and learned about the devastating impact of one of our state’s worst oil spills. Click the video below to watch the tour, which includes interviews with the Vice President of Operations for Crowley Martime, which owns the Hunter, and Chad Bowechopp of the Makah Office of Marine Affairs.
An incident just this week off the Washington coast underscores how important a permanently-funded emergency response tug is for our state. The state Department of Ecology says that on Wednesday a chemical tanker lost power about 45 miles off the coast. The rescue tug Hunter left its berth at Neah Bay and is heading towards the disabled tanker, prepared to render assistance if needed.
In September, Rep. Van De Wege, along with Speaker Chopp and members of the state Senate, had a tour on board the Hunter and learned about the devastating impact of one of our state’s worst oil spills. Click the video below to watch the tour, which includes interviews with the Vice President of Operations for Crowley Martime, which owns the Hunter, and Chad Bowechopp of the Makah Office of Marine Affairs.
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