Legislative Update from Rep. Phyllis Kenney

Government Reform

In Olympia all session, the focus has been on balancing the budget. Because the gap is in the billions, it’s easy for the press, legislators and others to focus only on the big numbers. But some of the most important work this year has been on reforming government and delivering vital services more efficiently.

Reform has been a focal point of my agenda for many years, and it has paid big dividends. Governing Magazine recently gave Washington State an A- for the way our state is managed. They said Washington is a “consistent leader in results-based governance” and is “ahead of nearly all other states in controlling spending by keeping track of where investments were and were not paying off.”

We are always looking for more ways to improve and the global economic crisis has given the state extra motivation to move quickly in a variety of areas. Some examples from this session are:


- Education changes to improve student learning

Last year legislation was signed into law making comprehensive changes to the way the state funds and delivers basic education (House Bill 2261). It was the first major look at how to better fund schools in 30 years. This year we followed up with legislation to update K-12 funding formulas (House Bill 2776) and a bill to improve our schools so we can compete for federal Race to the Top dollars (Senate Bill 6696).

- Transforming the critical GAU program into the Disability Lifeline

General Assistance Unemployable (GAU) helps people struggling with mental illness or addiction problems. Often those issues are the cause of many other issues – homelessness, arrests, emergency room stays, and more. This year GAU will become the Disability Lifeline, to reflect that often a small amount of assistance stops lives from spiraling out of control. House Bill 2782 also requires technology to be used to make the program more efficient, and prioritizes finding federal support for people in the program. It will save $25 million in the next 15 months.

- Focusing the state’s Department of Commerce on jobs

Last year the Community, Trade and Economic Development Department was renamed the Department of Commerce. This year, House Bill 2658 reorganized the department to allow for a heightened focus on jobs, while protecting the community programs and strengthening the economic programs.

- Rethinking technology services in state government

House Bill 3178 attempts to bring about systematic change to how we inventory, assess, manage and oversee our $2 billion a biennium in technology spending, which could save close to $30 million.

- First steps to retooling the state’s management program

Last year we passed HB 2049 which required an in-depth report on the Washington Management Service, which has grown from a few hundred to a few thousand. As a follow-up to that report, House Bill 2998 froze bonuses to WMS managers and other state employees and legislators are continuing work to reduce the number of WMS employees.

Those are a few of the important moves the state has made this year to rethink the way government works. Right now the state has fewer resources coming in, but the demand in public schools, health clinics, and other social services has increased.

Cuts need to be made, and under the current proposals being looked at, $4.40 worth of cuts will be made of every dollar of new revenue. Over 3,000 state employee positions have been eliminated under the current budget.

I’ll be continuing to work with my colleagues in the House on new ways to save state dollars and examine how we can make our tax system more equitable. This year’s budget challenges will extend into the next budget and beyond.

If you have questions about these reform efforts, or suggestions for other ways the state could be doing better, please contact me. I would appreciate your help in reforming state government.

Rep. Phyllis G. Kenney

Legislative Update from Rep. Phyllis Kenney

Washington didn’t cause this crisis

Our state is feeling the effect of a worldwide recession. Wall Street CEOs and the housing collapse caused serious damage to our economy which will take years to make up. Last session, we closed our $9 billion budget shortfall with an all-cuts budget, even as 29 other states raised revenue. The budget hole we’re working to solve didn’t start here, and the problem doesn’t end here – every country and every state is struggling with the recession.

While businesses lose customers during tough economic times, the demand for services like public schools, health care, emergency assistance, job training, and state financial aid increase – just when our ability to pay for them decreases.

Washington has seen a dramatic upswing in “caseload” – those who depend on state services. Parents are moving their children back into public schools, more students are seeking financial aid for college, people who have lost their jobs are asking for retraining opportunities. More seniors are finding their investments have been depleted due to the financial crisis that hit Wall Street and they need state assistance to pay for their long-term care. The housing crash is still forcing people out of their homes.

Although there are many signs that the economy is beginning to recover, experts believe Washington will continue to feel the effects of the Great Recession for months, if not a couple years.

We balanced the budget by shrinking government

There are less than two weeks to go in the 2010 Legislative session, and all eyes are on the supplemental operating budget. Both the House and the Senate released proposals last week, and both make a substantial number of cuts – on top of the $3.2 billion already cut from the current budget – and both depend upon some new sources of revenue.

We in the House have not yet decided on a revenue plan. Instead, we have been concentrating on finding more cuts and more reforms.

As we discussed last week, there were serious reductions made last year. The Legislature has already cut $3.3 billion from the current budget. Additionally, the first three bills signed into law this year were all devoted to making additional cuts and efficiencies.

In fact, for the first time since 1949, the 2009-11 biennial budget is smaller than the 2007-09 budget.

That’s right – for the first time in 60 years, we produced a two-year budget that was less than the one before!

Over a billion dollars less, in fact. Here’s a sample of the cuts already made:

Area	Budget cuts
K-12/Public Schools	$795 million
Higher Education	$504 million
Early Learning	$12 million
Health Care	$780 million
Long-term Care, DD, Mental Health	$197 million
Other Human Services	$227 million
Corrections and Criminal Justice	$157 million
Natural Resources	$93 million
Other government costs	$99 million

A statement of our values

The state operating budget isn’t just a table of numbers. It is a statement of our values and priorities; it is our vision of Washington’s future. We know those numbers represent families and communities, businesses and schools.

The budget decisions we make today not only directly affect the current needs of students, seniors, foster children, the unemployed and people with disabilities, but they also shape our future. So we have to ask ourselves some very hard questions:

How will additional cuts to our schools and colleges affect the employment opportunities of the next generation? Will they be well-trained for the jobs in the changing economy?

Can we afford to eliminate health care coverage for even more people, forcing the expense onto community hospitals and emergency rooms?

Is a particular tax exemption or legal form of tax evasion more important than making sure our seniors have safe nursing homes and well-trained caregivers?

How will an increase in taxes affect our businesses and families?

$4.40 in real cuts for each $1.00 in proposed revenue

As of this week, the Governor, the Senate, and the House have all recommended filling a small portion of the remaining budget gap with new revenue. We will also take even deeper cuts in state services, lay off more workers, and enforce new government reforms and efficiencies.

How much of the gap are we looking to fill with taxes? About 10% of the 2-year total.

Budget cuts
Original 2009-11 cuts	$3.2 billion
2010 proposal	$0.65 billion
Total	$3.85 billion	44%

Federal assistance
Original 2009-11	$1.9 billion
2010 expected	$0.65 billion
Total	$2.57 billion	30%

Transfers (including Rainy Day fund)
Original 2009-11	$0.96 billion
2010 proposal	$0.47 billion
Total	$1.43 billion	16%

Revenue increases
Original 2009-11	$0.00
2010 proposal	$0.86 billion
Total	$0.86 billion	10%

As you can see, we are considering $4.40 in real cuts for each $1.00 in proposed revenue.

Final decisions will be made during the next two weeks. Please feel free to contact me with any questions, concerns, or suggestions. I welcome your comments.

For more information on the proposed House supplemental budget: http://leap.leg.wa.gov/leap/budget/detail/2010/ho2010p.asp

March Demogram

I’ll be blunt. Frustration is rising. As we move further into this election year, people are looking at Washington DC and seeing Congress blocked from doing anything to help us because just a few voices are so opposed to making a positive difference that they are willing to do anything to stop our progress. This cannot stand. But while I know that you understand who is on our side, too many people just look at the entire political system and throw up their hands.

We need to give people a reason not to give up. We, the members of the Democratic Party at a local, state and national level, need to present a vision for what our country can be if we listen to each other, learn from the past, plan for the future and keep in the front of our minds that we are all in this together. As a country and as a world we will only survive, succeed and thrive if we all work together.

What drives people away from the political process? I think it has more to do with their concerns not getting addressed than anything else. We are of course limited on what we can do from a small geographical area in the Northern part of a single city. But we need to maximize our impact by encouraging each other to speak out.

At the Legislative District Town Hall on February 20th my son came up with a question all on his own. “What is Washington State doing to get electric cars on our roads?” This from an 11-year-old boy who listens to my wife and I talk about the news and knows that we have the ability to protect his future if we just get on the right track.

Our LD Caucus is on Sunday, March 14th at Ingraham High School. I would love to see a few hundred active people, wanting to get the business done and ready to engage in a discussion of how we can put our country on the right track. Our Draft Platform is on our website ready for your review. The agenda and rules are posted. I hope to see you there!

Read more in our March Demogram!