Washington state budget

From Sunshine Review

National Taxpayers Union
Transparency in your state Public employee salary States with spending online Collaborative transparency projects Model transparency legislation #statebooks on Twitter SMTS on Twitter
Action center
Sign up for e-updates Take action

Washington Gov. Chris Gregoire signed on May 19, 2009 the 2009–11 biennial budget passed by the Washington State Legislature that addressed a potential $9 billion shortfall (March 2009 estimate) for the coming two-year period.^[1] Gov. Gregoire referred to the state's revenue shortfall from November 2008 as being "pushed off a cliff." In November 2009 the Governor announced, "The state is now facing a new shortfall estimated at around $1.7 billion (estimates as high as $2 billion over its two-year biennium) that must be closed in the 2010 supplemental budget," which she will propose in December^[2] and asking all state agencies to report the impact of a 2% to 5% cut in their FY 2010 budgets.^[3]

The 2009–11 biennial budget signed in May 2009 closed the $9 billion shortfall by:^[4]

• $3.3 billion in program cuts
• $3 billion with the federal Recovery Act funds
• $2.1 billion by freezing state pay levels and transferring funds
• $400 million from the state's Rainy Day Fund
• $300 million from early reductions

The $3.3 Billion in Cuts and Efficiencies included:

• $600 million in K-12 through class size increases.
• $557 million in higher education by reducing 1,800 employees and raising tuition 14% (universities), 7% (community colleges) per year.
• $386 million through administrative or across-the-board cuts.
• $255 million from Basic Health Plan by increasing premiums 70% and reducing enrollment by 36,000 (36%).
• $127 million in payments to hospitals.
• $130 million from Corrections, including $73 million by reducing beds and community supervision.

Sources of the current estimated $2 billion shortfall:^[5]
Revenues declines

• $686 million June forecast
• $238 million September forecast
• $237 million tax lawsuit
• $32 million October revenue collections
• $65 million November revenue collections

$1.26 billion subtotal
Costs rising, issues emerging

• $659 million increased demand for health care, schools, prisons
• $12 million forest fires, landslides, dam failures, other possible emergencies
• $71 million lawsuits blocking planned cuts

$742 million subtotal

Gov. Gregoire's November 16, 2009 presentation The Budget Story outlines 70%, $21.6 billion as "protected" and $9.3 billion as "non-protected" categories for the $31 billion 2009–11 biennial budget. The non-protected areas listed for possible cuts in Gov. Gregoire's presentation are:^[6]

• Mental health and developmental disabilities services: $1.6 billion
• Prisons/community supervision of offenders: $1.6 billion
• Care for low-income elderly: $1.3 billion
• Economic support for low-income families: $1.1 billion
• K-12 non-basic education funding (class size reduction, others): $635 million
• Higher education: $500 million (most is financial aid)
• Juvenile corrections: $198 million

The upcoming budget timeline is:^[7][8]

• Mid-December Governor’s Supplemental Budget released
• January 11, 2010 the 2010 Legislature's Regular Session begins
• Feb. 18, 2010 revenue forecast released
• March 11, 2010 session adjourns

[edit] Budget Background

Washington currently operates on a biennium budget. The biennium includes a 24-month period from July 1st of odd-numbered years to June 30th of odd-numbered years, such as the 2009-11 biennium, which runs from July 1, 2009 to June 30, 2011. According to state law the Governor is required to submit a budget recommendation by December. Although the biennium includes two fiscal years, an approved budget the legislature can modify the budget through changes to the original appropriations. This can be done in any legislative session. Since 1979 the House and the Senate enact revisions annually to the state’s biennial budget. These revisions are referred to as supplemental budgets.^[9]

The Economic and Revenue Forecast Council is composed of representatives from both the legislative and executive branches. Each fiscal quarter, the Council adopts an official forecast of General Fund-State (GF-S) revenues for the current and (at some point) the ensuing biennia. These forecasts, together with any reserves left over from previous biennia, determine the financial resources available to support estimated expenditures.^[10]

Sources of State Revenues − All Governmental Funds 2009-11 Biennium Estimates^[11]

[edit] Budget figures

The state's budget shortfall has increased to $8 billion. In March the state Revenue Forecast Council said tax collections in January 2009 were $63 million short of the amount expected. ^[12] As of the November 2008 revenue forecast, revenues were projected to increase by five percent, $1.4 billion, in the next biennium, but the planned increases built into the existing budget result in a projected $5.7 billion shortfall. At the time there was concern the fiscal problem could approach more than $7 billion in planned spending over expected revenue when the March revenue forecast is released. The Governor's set price tag for the 2009-2011 budget is $69,592,333,000.^[13][14]

• See Washington state budget (2008-2009) for more information

[edit] Accounting Principles

Washington State Auditor's Office looks at financial information and compliance with state, federal and local laws on the part of all local governments, including schools, and all state agencies, including institutions of higher education. The State Auditor's Office publishes its audit reports online. The State Auditor's Office is established in the state's Constitution as part of the executive branch of state government. Washington citizens elect the State Auditor to four‑year terms. Brian Sonntag has been State Auditor since first elected in 1992.^[16]

The Institute for Truth in Accounting (IFTA) rates Washington “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Washington's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.^[17] Washington's CAFRs are publications of the Washington Office of Financial Management in accordance with with Revised Code of Washington 43.88.027. Victor A. Moore was appointed Director of OFM in January 2005. The Office of Financial Management:^[18]

• Plays a central role in budget planning, policy development, and fiscal administration for the executive branch.
• Prepares the executive budget proposal and monitors budget implementation.
• Maintains state government's statewide accounting systems, central books of accounts, and financial databases while also providing accounting services to state agencies.
• Oversees statewide personal service contracting activities.
• Conducts executive policy research and develops legislation to support the Governor's policy goals.
• Provides estimates of state and local population, monitors changes in the state economy and labor force, and conducts research on a variety of issues affecting the state budget and public policy.
• Provides a comprehensive risk management program for all state agencies.

[edit] Budget transparency

The State of Washington now has an official spending database online, thanks to the passage of Washington Senate Bill 6818, Promoting Transparency in State Expenditures, a bill that had mandated the creation of such a database by January 1, 2009.^[20] The Washington State Fiscal Information site is available here.

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

Criteria for evaluating spending databases

State Database	Searchability	Grants	Contracts	Line Item Expenditures	Dept/Agency Budgets	Public Employee Salary
Washington State Fiscal Information

[edit] Economic Stimulus

• The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.^[21]

• It is estimated that Washington will receive $6,288,066,020 in federal funding.^[22]

• The economic recovery website for Washington is available here.

[edit] Error in ARRP

On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.^[23][24]

The ARRP website overshot the number of Washington Congressional Districts by nine. Washington’s 39th Congressional District received over $300,000 in federal stimulus funds without a single job created.^[25]

[edit] Support for creation of the databases

The bill was promoted by the Washington Policy Center, and was based upon legislation developed by Jason Mercier, the Center's Director for Government Reform.^[26] Senator Eric Oemig was its lead sponsor, along with senators Brandland, Tom, Zarelli, Kastama, Weinstein, Kilmer, Keiser, and Kohl-Welles.

The National Taxpayers Union issued a press release detailing the passage of Washington Senate Bill 6818.^[27] NTU also wrote a letter in support of creating a grant and contract database.^[28]

[edit] Public employee salary information

One man by the name of Louis Bloom has assembled (via FOIA) a very thorough listing of 2007 Washington State Employees, Job Title and Salaries.

[edit] News

• 12/03/08:Taxpayers in Washington can now see how state officials and legislators allocate taxpayer dollars. Today witnessed the launch of the Washington State Fiscal Information site. The site stems from the partial adoption of Washington Senate Bill 6818, which “indicated the legislative intent that state revenue and expenditure data be made as open, transparent, and publicly accessible as is feasible with the goal of making government more accountable.” This searchable site contains financial data on budgets, expenditures, revenues, and more. In some cases the site lacks specificity, showing aggregates instead of details. That said, the launch of this database makes Washington one of the most transparent states. This site has already received significant attention from various media sources.^[29][30]

• In April 2008 Washington's Governor Christine Gregoire signed Senate Bill 6818.^[31] This bill mandated the creation of a searchable, publicly available website listing state expenditures no later than January 1, 2009.^[32]

[edit] Legislation

• Washington Senate Bill 6818, Promoting Transparency in State Expenditures, was signed into law.

[edit] See Also

Washington taxpayer-funded lobbying

[edit] External links

[edit] Additional reading

• Gov. Gregoire's 2009-2011 budget proposal

[edit] References

v • d • e State Budgets Cost of state transparency websites • State budget issues, 2009-2010 • Pubic employee salaries • States with spending online Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming •

	v • d • e State of Washington Olympia (capital)
Transparency	Public Records Act | Transparency Checklist | Government corruption reports | Transparency Legislation | Open Records procedures | Transparency Advocates | Transparency blogs | State budget | Taxpayer-funded lobbying associations |
Divisions	State | List of Counties | List of Cities | List of Towns | List of School Districts | Evaluation of county websites | Evaluation of city websites | Evaluation of township websites | Evaluation of school district websites |
Government	Washington State Constitution | Executive | House of Representatives | Senate |
Judiciary	Washington Supreme Court | Superior Court | Court of Appeals | District Court | Municipal Court | Judicial nomination process | Judicial news | Judicial activist organizations |
Ballot Measures	Ballot measures | Ballot measures listed by year | List of local ballot measures | Procedures for qualifying an initiative | Laws governing the initiative process | Signature requirements | Recall law | Ballow access law litigation | History of direct democracy | Campaign finance requirements |