Olympia Policy Watch

Executive session taping bill receives public hearing

2012-01-31T16:26:00.000-08:00

The Senate Committee on Government Operations heard public testimony today on SB 6109: Exempting video and audio recordings of closed executive session meetings from public inspection and copying. SB 6109 reflects a new strategy by the Attorney General and State Auditor to ensure that executive sessions aren't being misused in violations of the state's Open Public Meetings Act (OPMA). I joined State Auditor Brian Sonntag and Tim Ford, Open Government Ombudsman for the Attorney General's Office, in testifying on SB 6109 . . . READ MORE

DOR requests 5 year sunsets for new tax preferences

2012-01-27T11:19:00.001-08:00

The state Department of Revenue (DOR) is requesting legislation that would automatically sunset any new, extended, or amended tax preference after 5 years. DOR's request bill (HB 2530) is scheduled for a public hearing at 3:30 on Monday. According to DOR . . . READ MORE

Remember the budget deficit?

2012-01-26T14:38:00.001-08:00

As we conclude the 18th day of the 2012 REGULAR Session, the lack of legislative urgency to solve the state's billion dollar plus deficit grows more troubling with each passing day. It's been 92 days since the Governor called last December's special session declaring "timely legislative action is needed to secure the State’s fiscal health and address the shortfall in the 2011-2013 operating budget." Perhaps it is time to revisit the December 5, 2011 email Marty Brown, Director of the Office of Financial Management, sent all lawmakers under the subject line - "The urgency of budget action" . . . READ MORE

State argues 18 year old 2/3 vote requirement for taxes is constitutional

2012-01-24T14:58:00.000-08:00

Acting on behalf of the state the Attorney General's Office has once again argued the 1993 voter-approved requirement for a 2/3 vote to raise taxes is constitutional (policy has been subsequently re-approved by the voters and legislature on multiple occasions). Here are some pull quotes from the state's motion for summary judgment in the most recent legal challenge . . . READ MORE

State Auditor sheds light on local government finances

2012-01-17T11:04:00.001-08:00

State Auditor Brian Sonntag launched a new website today that allows citizens to quickly find data on local government finances. Here is a summary of the new resource . . . READ MORE

House committee passes LEAN management bill

2012-01-16T15:09:00.000-08:00

Neither ice nor snow could slow down efforts to improve agency efficiency today as the House State Government Committee adopted by a vote of 11-0 an amended version of HB 2173: Maximizing the use of lean strategies in state government. Here is a memo describing the changes from the original bill . . . READ MORE

Gregoire files legal brief in 2/3 vote for taxes lawsuit

2012-01-13T14:22:00.001-08:00

Last year several House Democrats joined the Washington Education Association (WEA) and the League of Education Voters to file a lawsuit to overturn the four-time voter approved 2/3 vote requirement for tax increases. Today Governor Gregoire filed a legal brief urging the Court to rule on this issue. From her brief (in-part) . . . READ MORE

WA Supreme Court hears oral arguments on tribal gas tax case

2012-01-12T16:13:00.000-08:00

Today, the Washington State Supreme Court heard oral arguments on the tribal gas tax case. Washington Policy Center filed an Amicus Brief on this case encouraging the court to accept direct review (which they did). WPC also conducted a statewide study that found tribal gas stations use their unfair tax advantage to undercut the price of fuel at private gas stations. Washington drivers lose about $30 million per year in gas taxes to Indian tribes . . . READ MORE

History of tax ballot measures in WA since 1932

2012-01-11T12:52:00.000-08:00

If history is any guide, lawmakers intent on going to the ballot with a tax increase proposal will face more problems than simply trying to fit their proposal on the election calendar. With the exception of targeted sin taxes in 2001, 1994 and a 911 tax in 1991, voters haven't been kind to tax increases proposals on the ballot. In fact, tax increases specifically earmarked for education went down in flames in 2010 (64% no), 2004 (60% no), 1989 (66% no), 1975 (67% no) and 1973 (77% no) . . . READ MORE

Transportation tax increase? Not so fast...

2012-01-10T10:46:00.000-08:00

In today’s State of the State address, the governor is expected to give more details on a possible transportation tax package. Washington Policy Center offers five recommendations for lawmakers to consider before preparing a statewide transportation tax increase in 2012 . . . READ MORE

State budget outlook: Not good

2012-01-10T10:21:00.000-08:00

Yesterday marked the beginning of the 2012 Legislative Session. Greeting lawmakers was a presentation by the Office of Financial Management on the state's 6-yr budget outlook. Bottom line - we've some serious structural problems. Here is a presentation by Stan Marshburn (Deputy Director of OFM) discussing the projections that show multi-billion dollar deficits going forward . . . READ MORE

Governor proposes B&O tax streamlining

2012-01-05T14:54:00.001-08:00

Governor Gregoire today announced her proposal to streamline administration of state and local B&O taxes. This is one of WPC's long standing recommendations. As we noted in our recent B&O reform proposal . . . READ MORE

State's "checkbook" now online

2012-01-05T10:06:00.000-08:00

The state's searchable budget transparency website (www.fiscal.wa.gov) has a new feature: Washington's "Vendor Checkbook." This is the equivalent of the state's checkbook. Here is how this new resource is described . . . READ MORE

Christmas comes early for reformers

2011-12-15T12:26:00.001-08:00

After watching the Legislature play the "Grinch that Stole the Balanced Budget" earlier this week it was encouraging to open an early Christmas present offered by the Governor today. At a press conference this morning in Olympia Governor Gregoire unveiled several reform initiatives. Among them . . . READ MORE

Legislature sets stage for 2012 Special Session(s)

2011-12-14T09:07:00.000-08:00

Unless state lawmakers know something we don't about an economic revival on the verge of sweeping Europe, today's quick exit from Olympia without actually balancing the state's budget sets the stage for the legislative budget can-kicking to continue deep into 2012 . . . READ MORE

Response to concerns about enhanced budget cutting authority for Governor

2011-12-12T07:45:00.000-08:00

With the Legislature consistently showing itself willing to wait to the last moment to bring the state's budget into balance, Washington Policy Center has proposed changing the Governor's current across-the-board authority to respond to a deficit to discretionary authority to make surgical reductions to enact timely savings . . . READ MORE

Governor should force Legislature to act on budget

2011-12-08T10:56:00.000-08:00

We’ve seen this song and dance before. It looks like the Legislature is going to do the same thing it did last year – partial cuts and then likely wait till the last moment to balance the budget (perhaps requiring another special session next year). This despite the Governor giving lawmakers months of advance notice and a list of possible budget solutions. The Governor should raise the stakes to ensure the budget is actually balanced in early January . . . READ MORE

Legislative foot-dragging on budget makes case for giving governor enhanced budget tools

2011-12-07T09:34:00.000-08:00

It's true that it takes time to make thoughtful decisions on reducing a $32 billion state budget. It's also true that lawmakers have known since this summer that the Governor would be calling a special session to balance the budget. Yet despite knowing what is required, the sense of urgency on display in Olympia right now is wanting, to say the least. The Governor could have helped provide extra incentive for lawmakers to act by also ordering date certain across-the-board cuts that would take effect unless the Legislature balanced the budget itself or provided the Governor the tools to do so . . . READ MORE

Voters may be asked to increase sales tax by half a billion dollars

2011-11-22T10:28:00.000-08:00

Thanks to Washingtonians' approval of I-1053's 2/3 vote requirement for tax increases in 2010, voters will have the final say on any potential tax increases in 2012. When announcing her budget yesterday, Governor Gregoire said she wants voters to weigh in on her plan to raise the sales tax by $500 million for the current budget. Involving the voters in this decision would not be occurring if not for the four-time voter approval of the state's 2/3 vote requirement for tax increases (currently under legal challenge) . . . READ MORE

Budget writers keep eye on Europe

2011-11-17T11:46:00.000-08:00

If you see your lawmakers monitoring news in Europe, chances are it's not for vacation planning but instead state budget planning. According to the state's economist Dr. Arun Raha, economic turmoil in Europe could play a huge role in our state budget debate. From today's state revenue forecast . . . READ MORE

An Open Letter to Governor Gregoire detailing Small Business Recommendations

2011-11-15T14:28:00.000-08:00

While the focus of lawmakers during the upcoming special session will be on the budget, one of our best opportunities to combat the economic recession lies with Washington's small businesses. In light of this, Washington Policy Center sent Governor Gregoire a letter outlining small business owners’ top policy recommendations selected at our Small Business Conference in September. We hope that these recommendations from the business community can guide lawmakers as they seek to balance the budget and reinvigorate Washington’s economy . . . READ MORE

State's liquor monopoly repealed

2011-11-09T11:49:00.001-08:00

It may have taken nearly 80 years but Washington's liquor monopoly has finally been repealed by voters. By a somewhat surprising margin, voters across the state are approving I-1183 60-40%. Ending the state's liquor monopoly has been a long time goal of the Washington Policy Center. It is exciting to see voters embrace the idea of focusing government efforts on strict enforcement of the public health, safety and drinking-age laws related to liquor sales, while leaving the business of distributing, pricing and selling liquor products to the competitive marketplace. Washingtonians are also approving SJR 8206 to enhance the state's rainy-day savings account. The measure is passing by a margin of 67-33% . . . READ MORE

Happy Election Week

2011-11-08T07:06:00.000-08:00

As voters across America head to the polls today, Washingtonians instead will be busy getting their ballots postmarked for the state's vote by mail election. While some results will trickle in tonight, it is likely that several races won't be finalized until later this week (or month) as ballots dropped in the mail this evening make their way through the postal system. Unlike our neighbors to the south in Oregon, who also vote exclusively by mail, our ballots aren't due today but instead need only be postmarked. In the vast majority of states mail-in ballots must either be received by Election Day or must be dropped off before the polls close. Washington, however, only requires that a ballot be postmarked by Election Day. This policy unnecessarily complicates the tabulation of votes and can leave the results of close races a mystery for weeks . . . READ MORE

TVW takes a look at budget options

2011-11-04T10:31:00.000-07:00

This week's edition of Inside Olympia takes a look at the state's budget outlook. Here is the teaser: "How to bridge the state's $2-billion budget gap? Are new taxes an option? What should state lawmakers do to create jobs and boost the economy? Host Austin Jenkins hears from business and labor, plus liberal and conservative think tanks."Interviewed for the show were Jeff Johnson (Washington State Labor Council), Don Brunell (Association of Washington Business), Remy Trupin (Washington State Budget and Policy Center), and myself . . . READ MORE

2/3 vote requirement for tax increases goes on trial January 14, 2013

2011-11-03T16:44:00.001-07:00

It looks like lawmakers better get used to abiding by the 2/3 vote requirement for tax increases - at least until 2013. Earlier this year several House Democrats joined the Washington Education Association (WEA) and the League of Education Voters to file a lawsuit to overturn the four-time voter approved 2/3 vote requirement for tax increases . . . READ MORE

DES seeking public comment on draft procurement rules/OFM rejects liquor warehouse proposals

2011-11-02T11:10:00.000-07:00

The new Department of Enterprise Services is seeking public comments on its proposed draft procurement rules and the Office of Financial Management has recommended that neither of the proposals received to lease the state's liquor warehouse be accepted . . . READ MORE

Colorado voters reject education tax increases

2011-11-02T08:21:00.001-07:00

Election day came a week early in Colorado and based on the results, proponents of tax increases may want to focus on plan B. Granted this was a Colorado election but voters there last night crushed a proposal to raise taxes for education spending. Here are the details courtesy of KWGN in Colorado . . . READ MORE

Should tribal gaming revenue sharing be on the table?

2011-11-01T15:18:00.001-07:00

While lawmakers consider the Governor's proposed budget reductions, discussions of ways to generate new revenues are growing louder. The perennial favorite is to close business tax exemptions. WPC's Vice President for Research, Paul Guppy, addressed that topic in an op-ed today published by Publicola (in-part) . . . READ MORE

Boeing helps state with Lean management reforms

2011-11-01T10:44:00.000-07:00

When announcing her proposed budget reduction strategy, Governor Gregoire also highlighted one way the state hopes to improve service delivery even as changes are made to program funding levels: Lean management. Gregoire noted at her budget press conference: "One example is we have partnered with Boeing to launch lean-management tools across our agencies, and we already are seeing early successes." What exactly are Lean-management tools . . . READ MORE

Unions formally rebuff Governor's request for health benefit changes

2011-10-28T08:33:00.001-07:00

Illustrating once again the need for the Legislature to have the authority to make budget decisions concerning state employee compensation, state employee unions have rejected the Governor's request to make changes to the portion taxpayers pay for their health care. On Wednesday the Governor's budget director Marty Brown sent a letter to state unions informing them that the Governor was re-opening the 2011-13 health care benefits agreement "in order to negotiate a reduction in the employer premium contribution." Here is a copy of the OFM letter . . . READ MORE

Governor provides lawmakers with budget recommendations

2011-10-27T15:05:00.001-07:00

Although the state's economy is beginning to show some signs of improvement as taxpayers are currently projected to provide approximately $2 billion more in revenue for the current budget than the last, state officials are still faced with the need to close a multi-billion dollar budget deficit. Governor Gregoire today presented the Legislature with a list of options of how to balance the budget during a special session set to begin on November 28. The Governor's budget reduction suggestions are available here . . . READ MORE

Governor asks unions to re-negotiate health care benefits

2011-10-26T14:54:00.000-07:00

Tomorrow Governor Gregoire will be holding a press conference outlining her recommendations to address the state's budget deficit. Today her budget director Marty Brown sent a letter to state unions informing them that the Governor was re-opening the 2011-13 health care benefits agreement "in order to negotiate a reduction in the employer premium contribution." Here is a copy of the OFM letter . . . READ MORE

Sonntag tackles business regulations

2011-10-20T12:16:00.000-07:00

Though he may be retiring at the end of his term next year, State Auditor Brian Sonntag is not scaling back his efforts to improve the performance of state government. This includes how government interacts with the economic engine necessary to provide the revenues to fund vital core functions: private enterprise. This is why Sonntag and his team are in the process of an important review of the state's regulatory environment. As noted by a March 2011 report . . . READ MORE

I-1183 liquor ads go under the microscope

2011-10-19T15:14:00.000-07:00

With proponents and opponents of I-1183 (to end the state liquor monopoly) shattering state campaign contribution records for a ballot measure, the airwaves are about to see a binge of ads for and against the proposal. Hopefully future ads will fare better in truthfulness than some of those run to date. The Seattle Times has done a good job of separating fact and fiction from the current ads. Here is a sampling of their findings . . . READ MORE

ALEC Adopts Principles of Legislative Transparency

2011-10-17T08:56:00.000-07:00

Members of the American Legislative Exchange Council (ALEC) have formally adopted "Principles of Legislative Transparency" to help guide how lawmakers conduct public business. ALEC is the nation's largest nonpartisan, individual membership organization of state legislators, with more than 2,400 legislator members from all 50 states, and 86 former members serving in the U.S. Congress. The ALEC Principles of Legislative Transparency were modeled after language drafted by the Washington Policy Center (WPC) to address various transparency abuses by the Washington State Legislature . . . READ MORE

Citizens' Guide to Senate Joint Resolution 8206 To Enhance the State's Constitutional Savings Account

2011-09-23T14:10:00.000-07:00

This November, Washingtonians will vote on Senate Joint Resolution 8206, a proposal to enhance the state’s existing constitutionally protected savings account for the state budget. The proposed constitutional amendment would build on a previous constitutional amendment adopted by voters in 2007 that created a constitutionally protected rainy-day savings account for the state budget, replacing the state’s statutory emergency reserve. The 2007 proposal passed with 68 percent of the vote. To build on the success of the 2007 reform, in January Washington Policy Center recommended that state leaders take additional steps to ensure that once the economy begins to improve, the state secures adequate reserves to help smooth out the ups and downs of revenue collections . . . READ MORE

Governor calls special session to begin November 28

2011-09-22T10:52:00.000-07:00

Governor Gregoire announced this morning she is calling a special session to start November 28 to address the state's $1 billion plus budget deficit. Here are my notes from her press conference . . . READ MORE

State employee compensation now available in a searchable format

2011-09-20T11:59:00.000-07:00

The Office of Financial Management (OFM) and the Legislative Evaluation and Accountability Program Committee (LEAP) have worked together to make the state's 2011 Personnel Detail available on the state's budget transparency website (www.fiscal.wa.gov) in a searchable way. This has been one of our top priorities since www.fiscal.wa.gov was launched in 2008. Many thanks to OFM and LEAP for their efforts to make this happen and their commitment to provide future year's data in the same searchable format . . . READ MORE

Citizens’ Guide to Initiative 1183 To End Washington’s Liquor Store Monopoly

2011-09-19T12:53:00.000-07:00

In November the people of Washington will vote on Initiative 1183, which if passed would end the state’s 78-year-old monopoly on the sale of liquor in Washington. Initiative 1183 is similar to last year’s Initiative 1100, which was rejected by voters, but there are also important differences. These differences are discussed in detail here. Washington Policy Center has long recommended getting the state out of the liquor business and allowing the competitive private sale of liquor under regulation by the state. This change would allow state officials to shift their efforts from managing retail sales to exclusively enforcing the state’s liquor, public health and public safety laws. Here are our Key Findings . . . READ MORE

Small Business Owners Offer Solutions for Recovery at Statewide Conference

2011-09-16T12:00:00.000-07:00

Small business owners and policymakers from around the state gathered at Bellevue College yesterday to discuss the state’s business climate at Washington Policy Center’s (WPC) 2011 Statewide Small Business Conference. During several interactive issue breakout sessions, business owners suggested and discussed solutions to improve the climate for small businesses in Washington. This was the fifth statewide small business conference hosted by WPC since 2003. The result is a list of priority solutions, selected by small business owners, for solving the major problems with the state’s business climate and moving towards economic recovery . . . READ MORE

Budget writers discuss options

2011-09-16T08:59:00.001-07:00

The Chair and ranking member of the Senate Ways and Means Committee were interviewed by TVW's Austin Jenkins yesterday on what the options are for lawmakers to address the estimated $1 billion plus budget deficit. Among the questions Jenkins asked Sen. Murray and Sen. Zarelli were their thoughts on our proposal to provide the Governor with discretionary budget cutting authority . . . READ MORE

Provide Governor with discretionary budget cutting authority

2011-09-15T10:38:00.001-07:00

Believe it or not, state revenues are still projected to increase by $2.1 billion for the 2011-13 biennium over the 2009-11 biennium. Unfortunately for lawmakers this increase is $1.4 billion less than what was estimated at the June Revenue Forecast meaning a budget deficit exceeding $1 billion now exists . . . READ MORE

Sen. Honeyford wins open government award

2011-09-14T14:19:00.001-07:00

The Washington Coalition for Open Government presented Sen. Jim Honeyford with its Key Award today for his efforts to improve legislative transparency this past session. I had the privilege of providing Sen. Honeyford with the Key Award on behalf of the Coalition on the floor of the state Senate this morning. Here is a copy of my prepared remarks . . . READ MORE

State Auditor Brian Sonntag to retire

2011-09-12T12:24:00.001-07:00

In a surprise announcement, State Auditor Brian Sonntag has decided to retire at the end of his term in 2012. From his email: "In the past week, I made a difficult decision not to seek re-election as Washington State Auditor in 2012. It was a tough call, but it is the right decision. At the end of my current term, I will have served 20 years in this Office and 40 years in public service - 35 in elected office. Based on what we has accomplished and what we will continue to do in behalf of citizens, the 2012 election is the right time for the Office to transition to new leadership . . ." READ MORE

WA Supreme Court grants motion to hear tribal gas tax case

2011-09-08T11:23:00.000-07:00

The Washington State Supreme Court granted the motion to hear the tribal gas tax case, Automotive United Trades Organization (AUTO) v. State of Washington. You might recall, WPC and others filed Amicus Briefs encouraging the Court to accept direct review. In 2006, Governor Christine Gregoire negotiated an agreement with Washington State Indian tribes that exempts tribally owned fuel stations from paying 75% of state gas taxes. This year the state will give Indian tribes approximately $22 million in state fuel tax revenue. And the amount will certainly grow as tribes continue to add more fuel stations. Taxpayers will pay approximately $621 million to tribes over the next 17 years . . . READ MORE

If tax referendum is put on ballot voters should also be sent constitutional 2/3 vote restriction

2011-09-08T10:11:00.001-07:00

There is universal expectation that after next Thursday's state revenue forecast lawmakers will need to make substantial reductions to the 2011-13 budget adopted earlier this year. The Speaker of the House and the Chair of the Senate Ways and Means Committee have already stated their desire to consider tax increases next year . . . READ MORE

Comparison of liquor retail store density for Western states

2011-09-07T09:54:00.000-07:00

In November the people of Washington will vote on Initiative 1183. Initiative 1183 would end the state’s 78-year old prohibition-era monopoly on the sale of liquor in Washington. Though there are similarities to last year’s Initiative 1100, which was rejected by voters, there are also important differences. We will be releasing a full analysis discussing these differences next week. There are currently 18 liquor monopoly states in the U.S., including Washington. These states maintain some level of monopoly control over the sale of liquor. Washington is one of 12 states that impose a government-only monopoly on both the retail and wholesale liquor sales . . . READ MORE

Citizens' Guide to Initiative 1125

2011-09-07T08:06:00.000-07:00

In November, voters will have a chance to consider Initiative 1125. I-1125 is known as the “Protect Gas Taxes and Toll Revenues Act – Protect the 18th Amendment to Washington’s Constitution.” I-1125 contains eight provisions that would affect how Washington officials collect and spend revenue from highway tolls. Washington motorists have a lot of experience with tolls, which have been used to fund 14 bridges, including those across the Tacoma Narrows, the State Route (SR) 520 floating bridge and the Interstate 90 floating bridge . . . READ MORE

State Supreme Court issues conflicting opinions on authority of Attorney General

2011-09-01T10:09:00.000-07:00

The Attorney General in Washington State is independently elected by the people. Of that there is no controversy. Based on two separate rulings by the State Supreme Court today, however, whether the Attorney General is truly independent is now in question. In one ruling concerning the City of Seattle's attempt to get the Attorney General to withdrawal from the multi-state challenge of the federal health care law the Court ruled . . . READ MORE

State responds to WEA/House Democrats 2/3 tax lawsuit

2011-08-17T10:23:00.000-07:00

Last month several House Democrats joined the Washington Education Association (WEA) and the League of Education Voters to file a lawsuit to overturn the four-time voter approved 2/3 vote requirement for tax increases. On Monday the state responded. From the state's brief (in-part) . . . READ MORE

September revenue forecast could be ugly

2011-08-11T14:25:00.000-07:00

Earlier this week Governor Gregoire asked agency budget directors to prepare for budget cuts of up to 10 percent ($1.7 billion). Today the state's Economic and Revenue Forecast Council released the revenue totals for August underscoring the prudence of the Governor's actions. Based on the numbers, the September 15 revenue forecast could put the state budget in the red. From the Council's press release . . . READ MORE

Fiscal impact statements for initiatives published

2011-08-10T16:22:00.001-07:00

The Office of Financial Management has published its fiscal impact statement for the three initiatives that have qualified for the 2011 election. Here are OFM's estimates (in-part) . . . READ MORE

OFM releases state employee salary details

2011-08-10T09:54:00.000-07:00

The Office of Financial Management has released the 2011 Personnel Detail Report. According to OFM: "This edition of the Personnel Detail Report includes total calendar year earnings for employees on the state payroll at any time between Jan. 1 2010 and Dec. 31 2010. The report is compiled by the state Office of Financial Management (OFM) from information provided by the state's payroll systems. The information OFM receives from the payroll systems is entered and maintained at the individual agencies . . ." READ MORE

Governor asks agencies to prepare for budget reductions

2011-08-08T12:50:00.000-07:00

Today the Office of Financial Management (OFM) sent agency budget directors a memo requesting that they prepare for budget reductions of up to $1.7 billion (10%) in a 2012 supplemental budget. From the OFM memo . . . READ MORE

State view of federal debt debate

2011-07-27T11:53:00.000-07:00

With the August 2 deadline less than a week away before the federal government reaches its debt limit, state budget officials across the country are preparing for the potential impact on state budgets depending on what Congress and the President agree (or don't agree) to. According to at least one state budget director, there will be "no happy endings" for states regardless of what occurs. Washington's budget director, Marty Brown, however, is a little more optimistic . . . READ MORE

WEA/House Democrats sue voters over 2/3 vote requirement for tax increases

2011-07-25T12:05:00.000-07:00

In the waning hours of the "budget focused" special session Democrats in the House and Senate both attempted to cue up votes on a tax bill not assumed in the budget that no one expected to pass. The strategy was to try to gain legal standing to sue the voters to overturn the 18 year old 2/3 vote requirement for tax increases. Today this legislative charade has come to fruition as several House Democrats have joined the Washington Education Association (WEA) and the League of Education Voters to file a lawsuit to overturn the four-time voter approved 2/3 vote requirement for tax increases. Here is a copy of today's legal filing . . . READ MORE

Graphical review of state's 2011-13 budget

2011-07-20T10:10:00.000-07:00

Though it took a special session to finish its work on the 2011-13 budget, the legislature took positive steps this year to put the state on a more sustainable budget path. Despite progress, however, an inadequate reserve fund coupled with ongoing economic uncertainty and projected future spending pressure leaves the state’s budget outlook on tenuous ground highlighting the need for additional structural reforms and spending restraint . . . READ MORE

WA lawmakers to hold public work session in Portland, OR

2011-07-15T11:14:00.000-07:00

Next Thursday Washington lawmakers from the House and Senate will hold a joint work session in Portland, OR. While it may seem strange for state lawmakers to hold a public meeting in a different state, technically they aren't. At least according to state definitions of out-of-state travel. While there is no danger of Washington attempting to annex parts of Oregon, Idaho, or British Columbia, according to the Senate . . . READ MORE

JLARC releases 2011 tax preference report

2011-07-14T11:10:00.000-07:00

One of the hot topics from the 2011 Legislative Session sure to resurface next year is what to do about the state's various tax preferences. To assist the Legislature in answering this question, in 2006, lawmakers adopted HB 1069 which set up the Citizen Commission for Performance Measurement of Tax Preferences administered by the Joint Legislative Audit Review Committee (JLARC). WPC's Vice President for Research Paul Guppy serves on the commission. Today JLARC released the commission's 2011 tax preference report. Of the 25 tax preferences reviewed, JLARC recommends the Legislature . . . READ MORE

Washington's credit rating: "Stable"

2011-07-13T15:34:00.001-07:00

Washington State is faring better than Washington D.C. when it comes to governmental credit rating. While national credit rating firms have put the U.S. on their "watch" list for possible downgrade, Washington State has been given a "stable" rating for its response to balancing the state's budget. That said, clouds remain on the horizon that could impact our future credit rating. Here are the July 2011 reports for the state from Moody's and Standard and Poor's . . . READ MORE

State Auditor releases review of performance-based contracting

2011-07-06T11:44:00.000-07:00

At the request of Governor Gregoire, State Auditor Brian Sonntag released a report last week detailing the state's current use of performance-based contracting and identifying opportunities for improvements. The report stems from an Executive Order issued by the Governor last November. From the report . . . READ MORE

Inslee on income tax and 2/3 vote requirement for tax increases

2011-07-01T10:19:00.000-07:00

Last night Congressman Jay Inslee did an interview with TVW's Austin Jenkins discussing his positions as a candidate for Governor. Among the policies discussed were Inslee's position on tax increases and whether the voter-approved 2/3 vote requirement for tax increases is constitutional. Here is the video of that interview queued up to the conversation on those issues . . . READ MORE

Department of Revenue Recommends Tax Simplification to Help Small Businesses

2011-07-01T09:25:00.000-07:00

A new report from the Washington state Department of Revenue (DOR) makes a positive suggestion, one that is well overdue but welcome nonetheless: simplify the administration of the state and local Business & Occupation (B&O) tax system. Several months ago DOR reached out to the small business community and what they found from over 1,100 comments was that the greatest tax complexity problems faced by Washington small businesses related to . . . READ MORE

More signs for a statewide transportation tax measure in 2012

2011-06-28T13:44:00.000-07:00

There are more signals that point to a statewide transportation tax package in 2012. Here is an RFP from the WSDOT on funding a poll. According to the scope, the poll will test . . . READ MORE

Washington leaders driving national agenda

2011-06-24T11:20:00.000-07:00

Prior to closing down, the motto for Olympia Beer was "It's the water." Based on recent news from the Attorney General's Office, there is definitely something in the water in Washington that leads to our leaders being recognized nationally. Yesterday a press release was issued announcing that Attorney General Rob McKenna has been selected by his peers to be President of the National Association of Attorneys General (NAAG) . . . READ MORE

Breaking down state employee compensation as a percentage of spending

2011-06-23T14:21:00.000-07:00

One of the major points of contention this past year in the Legislature was the impact state employee compensation has as a cost driver of state spending and whether changes should be made to help rein in costs. Based on the razor thin margin the June revenue forecast has left for the state's budget balance sheet, it is likely this conversation will continue in the future. So how exactly does state employee compensation impact state spending? There are a couple of ways to look at this question . . . READ MORE

June revenue forecast explained

2011-06-22T16:18:00.000-07:00

Remember all the "fun" last week as reporters and budget junkies tried to make heads or tails out of the June revenue forecast? The revenue forecast showed a negative $12 million difference between the March and June forecasts for the two budgets yet the impact on the ending fund balance for 2011-13 showed a reduction of $575 million. So how exactly does that math work? Quite well when you account for the fact the Legislature didn't assume any future revenue loss as a result of booking the tax amnesty funds in its budget balance sheet and then making adjustments for economic and non-economic activity since the March revenue forecast . . . READ MORE

Governor signs agency consolidation/contracting reform

2011-06-20T08:11:00.001-07:00

Last week Governor Gregoire signed a proposal to consolidate several administrative agencies and create a review process to help identify opportunities for some competitive contracting. Sponsored by Senators Baumgartner and Zarelli, SB 5931 creates a new Department of Enterprise Services and Department of Consolidated Technology Services by consolidating several administrative agencies and activities . . . READ MORE

2009-11 budget balanced for a day

2011-06-16T12:25:00.001-07:00

That didn't take long. The 2009-11 supplemental budget (rolled into the 2011-13 budget) Governor Gregoire signed yesterday is already projected to end in an $84 million deficit thanks to today's revenue forecast. According to the state's budget director Marty Brown, the ending fund balance for 2009-11 is projected to be minus $84 million and plus $163 million for 11-13. That $163 million reserve for 11-13 is nearly $600 million less than was assumed yesterday when the Governor signed the budgets . . . READ MORE

Liquor "emergency" and performance audit fund raid stand

2011-06-16T08:46:00.000-07:00

Over the past few weeks there was speculation as to whether Governor Gregoire would veto the emergency clause off of a liquor contract bill as well as veto the Legislature's raid of the voter-approved dedicated performance audit fund. The answer is no - both actions stand as approved by the Legislature. Here is video of the Governor explaining why she didn't veto the emergency clause off of SB 5942 . . . READ MORE

McKenna on tax increases, 2/3 vote requirement and competitive contracting

2011-06-15T11:20:00.001-07:00

Last week Attorney General Rob McKenna did an interview with TVW's Austin Jenkins discussing his positions as a candidate for Governor. Among the policies discussed were McKenna's position on tax increases, whether the voter-approved 2/3 vote requirement for tax increases is constitutional and if the state is fully taking advantage of opportunities for competitive contracting. Here is the video of that interview queued up to the conversation on those three issues . . . READ MORE

Governor to decide if liquor contract is state emergency

2011-06-13T10:14:00.000-07:00

This Wednesday Governor Gregoire will take action on the remaining bills from the special session including a proposal to request a contract for running the state's liquor distribution monopoly. Despite this proposal (SB 5942) not being assumed for the budget, an emergency clause was added to the bill meaning a referendum could not be run on the bill and the contract review process would take effect immediately. The emergency clause has worried supporters of a new initiative to end the state's prohibition era liquor monopoly. They believe SB 5942 could short circuit voters' opportunity to consider their new liquor reform proposal . . . READ MORE

Sonntag requests veto of performance audit fund raid

2011-06-09T08:17:00.000-07:00

State Auditor Brian Sonntag sent Governor Gregoire a letter last week asking her to veto an $8 million raid of the voter approved dedicated performance audit account. From Sonntag's letter requesting the veto: "Diverting performance audit funding to support unrelated, specific activities at other agencies is wrong. It sets a precedent for future use of this money that is not in keeping with provisions of Initiative 900 . . ." READ MORE

Former Governor Locke still preaching Priorities of Government

2011-06-03T10:40:00.001-07:00

While awaiting Senate confirmation of his appointment as U.S. Ambassador to China, outgoing U.S. Commerce Secretary and former Washington Governor Gary Locke is still pushing Priorities of Government (POG) budgeting . . . READ MORE

Did Senate mess up potential tax lawsuit script?

2011-06-02T09:17:00.001-07:00

Yesterday we highlighted Governor Gregoire's comments where she hoped that the State Supreme Court would rule on the constitutionality of the state's 18 year old 2/3 vote restriction for tax increases. Today Tacoma News Tribune Columnist Peter Callaghan dedicates his column to teasing out the legal strategy of House Democrats in trying to gain legal standing to overturn the law through the courts versus through legislation. Callaghan quotes the attorney that last argued before the Supreme Court that the 2/3 vote requirement is unconstitutional as saying that the Democrats may have had a stronger case if the Senate had tried the same vote maneuver . . . READ MORE

Gregoire wants Court to rule on 18 year old tax restriction

2011-06-01T09:02:00.000-07:00

It appears the new motto in Olympia is "If we can't beat voters, sue em." Governor Gregoire has now joined with Democrats in the House and Senate calling on the Courts to throw out the nearly 20 year old requirement that tax increases require a 2/3 vote claiming the restriction is unconstitutional . . . READ MORE

House Democrats set the stage to sue voters

2011-05-26T13:18:00.000-07:00

While the main focus of the just concluded special session was to finally finish work on the state budget and other necessary government reforms, the House Democrats also found time to lay the groundwork to in effect sue the voters over their passage of I-1053. Last November 64% of voters adopted I-1053 and for the fourth time (1993, 1998, 2007 and 2010) ratified a requirement that tax increases require a 2/3 vote. Many legislative opponents of the 2/3 vote requirement believe the restriction to be an unconstitutional obstacle to their ability to raise taxes with a simple majority vote. This is why late Tuesday night (the second to last day of the special session) and before taking action on small things like the capital budget, statutory debt limit and state government consolidation (SB 5931), the House spent 40 minutes to debate a tax increase bill (HB 2078) . . . READ MORE

Compromise on Workers' Comp; Accomplishes Half the Savings of Voluntary Settlement Agreements

2011-05-23T11:43:00.000-07:00

Late Sunday evening the Governor, flanked by the four caucus heads, unveiled the outline of a new compromise on workers' compensation. I say outline because no actual bill has been released as of Monday morning (this is somewhat problematic in its own way, since a rushed process has resulted in drafting errors in past sessions), although the state has a placeholder for the bill on its site . . . READ MORE

State passes bill to toll I-405, and protects the revenue for highway purposes

2011-05-20T08:38:00.001-07:00

The Governor recently signed HB 1382 into law. The bill would toll two lanes on I-405 in the north end, between I-5 and Bellevue. The original bill was amended and contains some significant changes. The most notable is keeping the toll revenue in the Motor Vehicle Fund, which triggers the protection of the 18th Amendment. This is good news for drivers because the tolls collected on I-405 can only be used for highway purposes and not raided by lawmakers . . . READ MORE

Senate rejects extension of "temporary" stadium taxes

2011-05-19T16:32:00.000-07:00

The Senate was on the verge today of re-writing the Legislative definition of a "temporary tax." The current definition of a "temporary tax" is a tax that expires as promised at the scheduled time. Had the Senate adopted SB 5958 (extending the "temporary" stadium taxes enacted in 1995) as originally proposed this would have become the new definition of "temporary tax:" "A temporary tax is a tax that is promised to expire to pacify voters in order to move special interest legislation but will ultimately be extended to pacify vocal special interests at the expense of legislative integrity to the voters . . . READ MORE

Senate moves forward with small competitive contracting reform

2011-05-17T15:42:00.001-07:00

By a vote of 29-18 the Senate today adopted a proposal to consolidate several administrative agencies and create a review process to help identify opportunities for some competitive contracting. Sponsored by Senators Baumgartner and Zarelli, SB 5931 creates a new Department of Enterprise Services and Department of Consolidated Technology Services by consolidating several administrative agencies and activities. According to the bill report, SB 5931 also requires . . . READ MORE

Voters' thoughts on tax exemptions circa 1972

2011-05-17T11:57:00.000-07:00

While researching a totally unrelated topic I came across a very interesting vote from 1972 that directly impacts the current tax debate occurring in Olympia. On the same ballot where voters authorized the state's landmark public records law (I-276) they also rejected by a vote of 45%-55% a proposed constitutional amendment that would automatically sunset all tax exemptions unless reauthorized . . . READ MORE

Government shutdown looms

2011-05-17T08:12:00.000-07:00

The battle lines are becoming so entrenched in Olympia that the prospect of a government shutdown are starting to be discussed. Here is how the AP describes the situation: "Top officials in Washington state started preparing Monday for a potential government shutdown in July as lawmakers stalled in their bid to reach a budget compromise. Gov. Chris Gregoire said she has started holding talks with Cabinet and financial-management leaders about what would happen if there were no spending plan by the time a new budget cycle begins in July. She's seen little progress in budget negotiations in the Legislature and can't recall a time that things have been so bogged down. 'I'm a little discouraged,' Gregoire said. She's asked lawmakers for an agreement-in-principle by the end of this week . . . READ MORE

No budget by June 1 --- lawmakers guilty of misdemeanor?

2011-05-13T14:30:00.001-07:00

As we come closer to the end of the 1st Special Session (May 25) and the prospects of a 2nd Special Session growing, what is the drop dead deadline for the 2011-13 budget to be adopted? According to the state's Budget and Accounting Act (RCW 43.88) that would be around June 1 . . . READ MORE

Stage set for tax fight in House

2011-05-11T15:59:00.000-07:00

The House Ways and Means committee took the first steps this afternoon to setting up a tax fight on the floor of the House during the "budget focused" special session. In a 15-11 vote, the committee members approved an amended version of HB 2078. The proposal would raise taxes on bank mortgage activity. Because the proposal is not a referendum it would require a 2/3 vote on the floor of the House making its prospects highly unlikely. Instead it appears the potential floor fight is more geared toward scoring political points since the outcome is all but certain to end in defeat of the proposed tax increase . . . READ MORE

Battle of the initiatives

2011-05-10T08:18:00.000-07:00

Yesterday the House passed two bills suspending Initiative 728 and Initiative 732. These two "free" education measures adopted by the voters in 2000 have been repeatedly suspended in tight fiscal times leading some to say the Legislature pays selective attention to the will of the people. Supporters of I-728 and I-732 complain that rather than suspend these voter approved laws, lawmakers should instead suspend/repeal/alter I-1053 that requires a 2/3 vote of lawmakers to raise taxes . . . READ MORE

Is it a tax or a fee?

2011-05-05T10:35:00.000-07:00

Whether a government charge is a tax or a fee is of great importance under the state's requirement that tax increases receive a 2/3 vote for approval. Often the line between the two can be blurred, however, which is why it is good to have a bright line test to help clearly define if a proposed revenue increase is a tax or a fee. A recent ruling by the U.S. Government Accountability Office (GAO) provides a good cheat sheet to use. In a ruling yesterday declaring California's E-Waste Recycling Fee is in fact a tax and not a fee, GAO found . . . READ MORE

Tax increases on special session hearing agenda

2011-05-01T08:14:00.001-07:00

Proposed tax increases will take center stage Wednesday in the Senate Ways and Means Committee despite the promise from legislative leadership and the Governor that the special session would be focused on only those bills necessary for finishing the budget . . . READ MORE

State Auditor: Use competition for state printing jobs

2011-04-25T12:07:00.000-07:00

State Auditor Brian Sonntag released a performance audit this morning of the State Printer and various agency print shops. According to the audit: "With state government facing significant financial challenges, questions have again been raised on what the state should do and can afford to do. These questions led our Office to look at several various programs and functions, including the Department of Printing. We concluded that a state-owned print shop is not a core function compared with educating children and providing for the health and safety of Washington citizens. But printing is a necessary support service to help state agencies prepare and distribute public information . . . READ MORE

Governor: Special session to start Tuesday at 9 a.m.

2011-04-22T15:36:00.000-07:00

With the Legislature failing to finish its work on the 2011-13 budget during the 103 day session (lawmakers are adjourning today two days early), Governor Gregoire announced today she will be calling a special session to convene at 9 a.m. this coming Tuesday. The Senate Ways and Means Committee has already scheduled a 2:30 p.m. public hearing on several bills for Tuesday. The Governor said at a press conference today that legislative leadership has committed to limit the scope of bills considered to those agreed upon in the proclamation she plans to issue once they adjourn. Here is a copy of that proclamation . . . READ MORE

Is Washington's Constitution undemocratic?

2011-04-21T10:55:00.000-07:00

The 2011 budget debate has been framed by voters' approval of the 2/3 vote requirement for tax increases with their 64% approval of I-1053 statewide. Voters have enacted or re-affirmed the two-thirds vote requirement for tax increases four times: 1993, 1998, 2007 and 2010. Opponents of the supermajority requirement, however, continue to argue that supermajority requirements are undemocratic and lawmakers should be able to make tax decisions based on a simple majority vote. Though the 2/3 vote requirement for tax increases is a statutory requirement, if supermajority restrictions are undemocratic wouldn't that also be true of constitutional restrictions . . . READ MORE

How many NTIB bills are there?

2011-04-20T09:51:00.001-07:00

If the Legislature were to call itself into a special session restricted to finishing work on the budget and those bills necessary to implement the budget (NTIB), how many bills would be in play? That's a question I've been trying to resolve but the answer is not as clear cut as I had hoped. According to staff for the House and Senate Ways and Means committees, a NTIB bill is generally a bill referenced in the budget that requires making a statutory change to achieve savings . . . READ MORE

Special Session: Budget overtime or 30-day free-for-all?

2011-04-19T11:03:00.000-07:00

Apparently 105 days won't be enough for the Legislature to finish the budget this year. Now that it is clear a special session will occur the only thing left in doubt is whether the Governor will call a special session or if lawmakers will call themselves back to Olympia to finish the job. The distinction between these two options is the difference between a limited special session focused only on adopting the budget and those bills necessary to implement the budget (NTIB) and the potential for a 30-day free-for-all where all the old bills that failed to move and any new bills introduced can be considered . . . READ MORE

House refuses to allow vote on bi-partisan workers' comp reform bill

2011-04-15T10:45:00.000-07:00

Yesterday, the House refused to allow a vote on SB 5566, the Senate's bi-partisan bill that would allow for voluntary settlement agreements (VSA) in the state's workers' compensation system. This is a mechanism that 44 other states utilize to help keep system costs down. Enacting SB 5566 would save the Department of Labor and Industries about $1.2 billion over the next biennium and a quarter of a billion each year after that . . . READ MORE

Odd definition of legislative "transparency"

2011-04-15T09:47:00.001-07:00

Usually when I see a bill that claims to increase legislative transparency I get excited that maybe the message is getting through. That is of course, unless it is on a 176 page striker to a title only bill, acted on at a 8 a.m. hearing, with the details not being made available until 9 p.m. the night before. Here is part of the intent section for the new text of HB 2020 . . . READ MORE

Revenue (tax) bills continue to emerge in Legislature's last weeks

2011-04-14T10:22:00.000-07:00

Legislators introduced Senate Bill 5945 today, which proposes a referendum to the voters to raise taxes on a variety of specific industries that some policymakers believe are benefiting from "tax preferences that lack such a statement or purpose, or were enacted under very different economic conditions than the conditions that prevail in 2011." Among the industries that would see their tax rate jump are . . . READ MORE

Did voters really mean 2/3 vote for ALL tax increases?

2011-04-14T09:12:00.000-07:00

While April 15 is not in danger of losing its place as Tax Day on the calendar, Senate Democrats have chosen April 14 as the day they will introduce numerous tax increase bills. One of the bills is a proposed referendum to ask voters if they really meant that ALL tax increases should require a 2/3 vote of the Legislature . . . READ MORE

Comparison of budget balance sheets

2011-04-13T10:01:00.000-07:00

Around 7 p.m. last night the Senate's top budget writers released their proposal for the 2011-13 budget. The public hearing for the bill is scheduled for 2:30 p.m. today. In a rare display of budget bipartisanship, the Chair and Ranking Member of the Senate Ways and Means Committee gave a joint press conference to announce the details. Here is the video of the Senate budget roll-out . . . READ MORE

Liquor reform bill introduced

2011-04-12T15:12:00.000-07:00

With just a few weeks left of the 2011 Legislative Session, liquor reforms are taking front and center in the budget debate. The House budget assumes $300 million in new revenue by entering into a public-private partnership for the running of the state's liquor warehouse. Here are some of the still evolving details on that proposal. Today Senators Tom, Sheldon, Hobbs, Ericksen and Litzow introduced SB 5933 to privatize the state's prohibition era liquor monopoly . . . READ MORE

House Democrats Take Aim at Mortgage Interest Deduction and Out-of-State Shoppers

2011-04-11T13:10:00.001-07:00

Late in the game during this 2011 Legislative Session, the House Democrats (48 of them anyway) introduced HB 2078 which "significantly narrow[s] a tax deduction for banks and other financial institutions, and repeal[s] a sales tax exemption for nonresidents." This comes after last week's prolonged budget protests, some of whom were asking legislators to repeal most, if not all, tax breaks for businesses as an attempt to avoid further cuts to education and/or social programs . . . READ MORE