Posts tagged: budget negotiations
Photo courtesy of Sen. Patty Murray's office.
Russell Wilson has been the key to the Seahawks' success this season. But he has also had a role in something a bit bigger — the agreement on the federal budget worked out by Sen. Patty Murray of Washington and Rep. Paul Ryan of Wisconsin.
Coming in to negotiations over the budget last fall, the two didn't share much in common except an admiration for Wilson's abilities as a quarterback — at the Seahawks for Murray, at the University of Wisconsin for Ryan. After the budget deal was announced, the two joked on Meet the Press about Wilson being a common line in their negotiations.
Today Murray presented Ryan with an autographed Seahawks No. 3 Wilson jersey. Ryan presented her with some Kringle, which is the official Wisconsin state pastry, and some cheese.
No word if they plan to both don jerseys to watch Saturday's game together and share the snacks.
OLYMPIA —Negotiators are making progress on a budget compromise that would cover the state's operating costs for the next two years, Gov. Jay Inslee said this morning.
But not enough that Inslee could say for certainty whether the Legislature will be working full-time starting Monday, when the special session starts.
“I think progress was made this week,” Inslee told reporters after ceremonial bill signings in his office conference room. He expects negotiators from both parties and both chambers will “start making the hard compromises necessary.”
The Legislature failed to pass a two-year operating budget during its 105-day regular session which ended April 28. Inslee called a special session to begin May 13, but budget staff and key leaders have spent parts of the last two weeks trying to find areas for compromise. Operating budgets passed by the Senate and House are more than $1 billion apart in terms of total spending, and the House budget calls for changes in tax exemptions the Senate does not.
When the Legislature adjourned on April 28, Inslee described the sides as “light years apart.” Budget negotiators met on Tuesday and today, he said. Other than to say they were making progress, Inslee said he couldn't elaborate. “We've agreed not to talk about negotiations.”
After convening at 9 a.m. Monday, legislators could hold hearings on some other issues that they or Inslee would like brought up in the special session. Among those are tougher rules for repeat drunk-driving offenses which had strong support when introduced but hit a few roadblocks over questions of funding in the final weeks of the session. Inslee said he thought negotiators were “99.5 percent of the way” to a compromise that would save counties and cities money on drunk-driving cases but may cost the state more money. If that's the case, budget negotiators will have to be sure the operating budget will have money to cover those changes, he said.
OLYMPIA — A week after the Legislature's overtime session wrapped up, Democrats accused GOP gubernatorial candidate Rob McKenna of delaying the final compromise by bringing politics into the process.
Sen. Ed Murray, D-Seattle, joined members of the campaign for Democratic governor hopeful Jay Inslee to accuse McKenna of using the budget stalemate “for political purposes” to push reform proposals.
A spokesman for the McKenna campaign called the accusations “nonsensical.” McKenna did talk about budget principles he would follow as governor, but “didn't try to inject himself into day-to-day negotiations,” Charles McCray III said.
Murray and the Inslee campaign were merely being “protectors of the status quo,” McCray said. “It's the status quo mentality in Olympia that is the reason it took so long.”
McKenna did support a maneuver by all 22 Republicans and three breakaway Democrats late in the regular session that pushed through an alternative budget. Murray questioned how McKenna, who has called for increased spending on education, could support a budget that cut public schools and colleges.
McKenna later said he “wasn't thrilled” with the education cuts in that alternative budget, which later was revised in the House. At a campaign press conference during the third week of the special session, he said if he'd been involved in discussions over that alternative Senate budget “I would've gone to them and said 'Let's not make the education cuts.'”
At that press conference, McKenna accused Democratic leaders in general, and House Speaker Frank Chopp in particular, of holding up negotiations by refusing to allow votes on reforms.
The partisan lines over the reforms aren't so clear-cut. The original proposal on a four-year balanced budget, a constitutional amendment, came from a Senate Democrat, one of the three who joined Republicans on the budget vote.
Murray said that's a stricter rule than any state in the union has, and “forces you to predict something in the future that is almost unpredictable.” The negotiated settlement over the budget and reforms is a statutory requirement, with some exceptions, for a four-year budget, which would be easier to amend by future Legislatures.
“It took us to bring some common sense to it,” Murray said.
On his website, McKenna details a series of ideas to reform the budget process he would push as governor. But he doesn't mention balancing the budget for four years, rather than the current two years. At his press conference earlier this month, he said he supports a four-year balanced budget but “I don't know if it requires a constitutional amendment.”
“Everybody has to give. Everybody has to get,” Gov. Chris Gregoire says of the final budget deal.
OLYMPIA — Some state spending that legislators approved shortly before dawn Wednesday as part of a package deal to end the session may not survive the veto pen.
Gov. Chris Gregoire said she would sign the major reforms which were part of a negotiated package of legislation that came together in the closing days of one special session and needed a few hours of yet another special session to pass a bleary-eyed Legislature.
That package includes changes to state employees' early retirement system for workers hired after June, an attempt to equalize health insurance plans for public school workers and state employees, and an effort to project out four years to get state spending and revenue to match up.
But legislators stuck special projects into the supplemental budget “at a fevered pitch” in the final discussions, she said, and she's having staff comb through the 280-page document.
“I didn't agree to every dotted “i” and crossed “t” in that budget,” she said. “I'm sure there are things in there that I will veto. I want more in the ending fund balance.”
In her budget proposal, Gregoire called for an ending fund balance, which serves as a cushion against further economic downturns, of about $600 million. The budget passed Wednesday morning has a balance of just over half that, about $320 million. She doesn't have an estimate of how much she might cut, but said there's no way to trim out $300 million.
The reforms that Republicans were demanding in return for a vote on the budget, however, were carefully studied, she said. Those include:
* A change to the early retirement system for new state employees. Any new employee would be able to retire before age 65 after 30 years in state service by accepting a reduction of 5 percent for each year under 65. A 2000 law allows existing workers with 30 years service a 3 percent per year reduction between 65 and 55, and a 2007 law and 2007 allows for full benefits at 62.
* A review of the public school employees' health insurance systems — which vary from district to district — and incentives for the districts to offer plans that are in line with plans available to state employees, including plans with high deductibles and health savings accounts. One of the key elements of that legislation is to encourage districts to offer plans in which family insurance premiums that are no more than three times the cost of an individual's plan.
* Requirements that the Legislature adopt a four-year budget plan, rather than the current two-year plan, for the state General Fund that projects that scheduled expenses won't exceed projected revenues, and provides an ending balance that's in the black. The law also adds the state treasurer to the Economic and Revenue Forecast Council, which produces the revenue outlook that becomes key to legislative budgeting.
Those reforms were key to Republicans and some conservative Democrats voting for the budget. For weeks, Republicans demanded reforms before they'd consider any decision on taxes or vote on the budget. Democrats wanted a commitment on searching for more revenue, particularly the closure of a tax exemption for first mortgages written by large, multi-state banks. The stalemate that developed near the end of the regular session carried over into the special session. Last weekend, Gregoire and her staff put together a package that included all elements and began working with legislative leaders and budget experts on a way to make that work.
They ran out of time on Tuesday, and she called another special session, one that legislative leaders agreed would only last until they voted on the package of bills, and told them to stay until it was done.
She denied reports that one side wanted negotiations to fail, and doubted that it could have happened any faster.
In the end, Democrats got a budget very close to what they had proposed in the Senate but couldn't pass because three of their members lined up with the 22 Republicans to pass a different spending plan. The final budget had no cuts to public schools or state colleges, saved the Disability Lifeline and the Basic Health plan. Republicans got the reforms they said were needed to make the budget “sustainable.”
“They all got something critical. They all gave,” she said. Everyone was tired of cutting programs, she added.
Sen. Linda Evans Parlette, R-Wenatchee, who represented GOP Senate leadership in the negotiations, agreed with Gregoire's assessments on negotiations and the final package.
“I think it was a package deal. The governor is exactly right: We're all tired of cuts,” Parlette said.
But Gregoire's comments that she'd have staff go through the final budget for things she might veto that were added at the last minute struck one government watchdog as odd. Jason Mercier of the Washington Policy Center questioned why it was alright for the governor to say she didn't have enough time to review the final product when legislators had to vote on it without having time to study it, and the public never saw the final product before it was passed into law.
OLYMPIA — A plan to end a tax exemption for large banks and extend tax breaks for some other businesses passed the Senate over objections from some of the chambers more conservative Republicans and more liberal Democrats.
The bill, which removes an exemption for large banks for first mortgages, required a two-thirds majority because it is a tax increase. Some senators tried to split that out from the revised tax exemptions for newspapers, food processing operations and server farms, which by themselves only require a simple majority.
“This is a bad precedent (mixing) tax breaks for some and tax increases for others,” Sen. Don Benton, R-Vancouver, argued. “I assure you this will find its way to the courts.”
But the bill passed 35-10, two votes over the required super majority.
Among Spokane-area senators, Mike Baumgartner and Lisa Brown voted yes, Mike Padden and Mark Schoesler voted no. Bob Morton was excused.
Gov. Chris Gregoire orders Legislature into an all-nighter.
OLYMPIA — The Legislature ended one special session at midnight and began a new one as Wednesday began, working to finish work on a deal over budgets and reforms to state government.
Gov. Chris Gregoire said she was keeping legislators in the Capitol until they finished their work, not allowing them to go home for a few hours sleep and return to work in the morning.
“If I let them go home, the air will go out of the ballon again,” Gregoire told reporters at a news conference to announce the new, one-day special session. “There's only a few hours to get it done.. . No napping.”
Technically, the governor can't call a special session for less than 30 days. But Gregoire said she had an agreement with legislative leaders that the special session would only extend long enough to finish work on bills in an agreement that was reached Tuesday afternoon.
That agreement — which involves the out-of-balance operating budget, the capital construction budget and reforms to pensions, public school employee health insurance and four-year balanced budgets — showed signs of fraying throughout the night. The 282-page operating budget, which is a spending plan for many state programs through June 30, 2013, didn't even arrive on legislator's desks until after midnight.
Asked about the public's reaction to a budget and other legislation that is passed late at night, Gregoire insisted that there were no surprises in any of the bills.
“It isn't as if these issues haven't been vetted,” she said.
OLYMPIA — The road to to adjournment of the special session does not always run smooth.
Voting ground to a halt for a while Tuesday evening as the House waited on the Senate to pass the capital budget and the Senate waited on the House to pass changes to the state pension system.
Ronald Reagan's old phrase: “Trust but verify” could be heard in the wings on both sides of the rotunda.
But a visit by Gov. Chris Gregoire to the leadership offices of both chambers may have restarted the process.
“We're still working it. We're making progress,” Gregoire said as she strode quickly out of Speaker Frank Chopp's office with Majority Leader Lisa Brown at her side.
A few minutes earlier, Senate Democrats seemed convinced that Senate Republicans were about to leave the chamber. But the Republicans were meeting in their caucus room, going over the details of several bills on the list for an upcoming vote. One of their members was upset about something, and made moves to leave for the night, telling at least one colleague “see you next year.”
Benton was gone for a vote or two, but within a half hour was back on the floor and the Senate was voting on parts of the “package”. They approved a modernization of the way the state sends the sales taxes it collects to cities and counties, which provides a one-time boost to the operating budget of about $250 million. That bill, which was a key element of negotiations over the operating budget, has already passed the House and goes to the governor.
The House passed changes to the state pension system, limiting the ability of new hires to retire early with enhanced benefits.
The Senate began debating a change in taxes on “roll-your-own” cigarettes that are bought at machines in commerical establishments. Those cigarettes are currently taxed at a lower rate than a pack of manufactured cigarettes. But that vote was delayed when Sen. Mike Padden, R-Spokane Valley, asked whether it was a new tax which under state law requires a two-thirds majority to become law.
The “roll-your-own” cigarettes bill was set aside and the Senate passed a bill calling for budgets that balance over four years, rather than just two, by an overwhelming 38-9 vote.
OLYMPIA – Legislators slogged through a series of votes Tuesday night that would give the state a balanced budget, pay for nearly $1 billion in government construction projects and implement a series of reforms that could save the state money in the future.
Both chambers were poised to vote on a more than a half-dozen bills, an interconnected package of spending cuts and reforms hammered out in negotiations with Gov. Chris Gregoire as the clock ticked toward a midnight deadline.
They made plans to go into a brief special session if necessary to complete votes on the package, which would change the state’s pension system, revise health insurance programs for public school employees and require budgets that balance over four years rather than two.
OLYMPIA — Legislators expect to vote later tonight on a budget and a package of reforms that have been the subject of negotiations for more than a month.
Senate Majority Leader Lisa Brown, D-Spokane, said agreement has been reached on the budget and on changes to the state's pension system around early retirement provisions. A proposal for planning a four-year balanced budget instead of the current two years is almost done, and changes to public school employees' health care is also very close.
Those bills must still be printed, brought to one chamber's floor for passage, then moved to the other for passage in the same form.
“We have an agreement to vote,” Brown said. That's not quite the same as an agreement on all sides to pass all the legislation. That remains to be seen, in the voting.
There are questions about whether that can be done by midnight, the end of the special session. If they run out of time, it would be possible for the governor to call another special session with the understanding it was just to finish that work, Senate Minority Leader Mike Hewitt, R-Walla Walla said. It would also be possible for the Legislature to call itself back into special session.
Senate Democrats were called into a caucus at 5:20 p.m. with the admonition: If you want information, we have information.
OLYMPIA — Legislators appear close to an agreement on a budget fix and several other bills needed to get that budget passed — so close that they are trying out different ways to describe “almost a deal” without sounding too positive after leaving an afternoon meeting with Gov. Chris Gregoire.
Sen. Joe Zarelli, R-Ridgefield: “We're on the same sheet of music, except some of the notes need to be clarified… It's the little things, the little differences.”
House Minority Leader Richard DeBolt, R-Chehalis: “It's a framework with some agreements in it…but there are so many moving pieces.”
One legislator described it as trying to juggle eight balls. Asked if that was a good description, DeBolt replied: “It'd be nice if it was only eight.”
Those moving pieces include a revision to the remaining 15 months in the state's current operating budget, which has a gap of about $1 billion between what the state is expected to collect in taxes and what it is scheduled to spend in programs and wages; the state's capital budget, a smaller spending plan for large construction projects, and ancillary questions over the state limit; changes to the state retirement system to close off some early retirement options for new hires; a way to bring the health insurance programs for state school employees in line with the benefits for state workers; and a way to project budgets over four years, instead of the current two years, in a way that prevents spending imbalances like the current one without requiring special sessions for small fluctuations in revenue forecasts.
OLYMPIA — A deal to break the budget stalemate is reportedly close, but the real question could be whether there's enough time left in the special session to pass it, should negotiators reach agreement.
Budget negotiators were down to the nitty gritty in the operating budget, known as provisos, in the afternoon while legislative leaders were preparing for yet another meeting with Gov. Chris Gregoire.
“We're getting close,” Senate Majority Leader Lisa Brown, D-Spokane, said after running the gauntlet of television cameras outside the governor's office.
A few minutes earlier in the Senate wings, Brown said Democrats and Republicans seemed close to a “tentative deal” explaining “It's a good sing we're writing budget provisos.”
Provisos are special instructions in a budget that direct spending on particular projects or programs.
But Brown acknowledged that the real problem is the clock. The special session will end at midnight tonight, and there is a question whether there is enough time to write, print and vote on the bills in both houses.
It would require agreement on all sides to waive certain rules that require waits for legislators to examine and propose amendments to bills, and wouldn't allow much time for debate.
OLYMPIA — Stop us if you've heard this one: Legislative leaders and the top budget writers huddled with Gov. Chris Gregoire this morning, looking for an agreement on the state's operating budgets and reform issues connected to it.
OK, so we've written that a few times lately. Here's the new part of it. It's the last day of the special session for them to come up with that agreement, get it printed and passed by both houses of the Legislature.
Leaders of the two parties in the two chambers, as well as the budget writers continued their marathon meetings with Gregoire around 10:10 this morning. Yes, the meeting was scheduled for 10 a.m., and there were some comments about invited guests who were not present, making everyone else wait.
The last participant, Sen. Joe Zarelli of Ridgefield, ranking Republican on Senate Ways and Means, arrived a few minutes after everyone else, reportedly because he'd been huddling with committee staff.
Prognostications for an deal ranged from the very optimistic — members in both chambers were advised to be ready to work until midnight — to the very pessimistic by those who question how it is physically possible to produce the needed legislation, should an agreement be reached, in the time remaining.
Back in the day, legislators could fudge the end of a session, by stopping or covering the clock, and go past midnight on the final day to push through a bill or two. With computers and automatic time stamps, that's not really possible any more. When the clock strikes midnight, the special session turns into a pumpkin (or some other vegetable, take your pick).
One sign of an alternate plan: A bill was introduced in the Senate giving the governor discretionary authority on what to cut in the operating budget to close the estimated gap of more than $1 billion between projected revenue and scheduled expenses. Under current law, a governor can only cut across-the-board, so all programs suffer equally.
OLYMPIA — Legislative leaders resumed their negotiations with the governor, apparently close to a possible agreement on the budget and surrounding issues.
“We're coming back to see if we've actually got an agreement,” Senate Majority Leader Lisa Brown, D-Spokane, said as leaders of both parties in the two chambers, as well as the top budget writers gathered in the waiting room outside the governor's office.
Words like framework, tentative agreement and possible agreement were all mentioned. “It's all just semantics,” Brown said. After leaving discussions with Gov. Chris Gregoire about 7 p.m., leaders outlined the proposals for a budget and several reforms to their members, testing the waters for support.
If they have enough support among the parties on both chambers, legislators will play “beat the clock” late Monday and throughout Tuesday as they race to beat adjournment of the special session, which must happen by midnight.
They will have to agree on language for bills, which must still be drafted and reviewed, then passed in the exact same form in both chambers. Legislative staff could work through the night, but only if that framework for an agreement turns into solid agreements on key pieces of legislation.
Legislators reportedly have been close on the operating budget itself, leaders said. The real holdups, as has been the case for weeks, are changes to state programs or policies, which some call reforms, that would reduce state expenses in future years. The main reforms involve revising state budget practices so projections for expenses and revenue balance for four years into the future, rather than two; making medical insurance plans for public school employees more like the health care plans for state employees; and revising the state pension systems so new employees will have a less generous system for early retirement.
OLYLMPIA — After meeting for about two hours, legislative leaders left their discussions with the governor to discuss a possible “framework for an agreement” with their members that could end the stalemate over the budget.
Leaders of both parties from the two chambers circumvented reporters sitting in the governor's waiting room and went up a floor to where most legislators have been waiting throughout the day. The leaders are due back at 8 p.m.
“She's still holding out hope of midnight” to wrap up all business without another special session, Cory Curtis, a spokesman for Gregoire, said.
But that would require an agreement on language for bills, that must still be drafted and reviewed, then passed in the exact same form in both chambers. Legislative staff could work through the night, but only if that framework for an agreement turns into solid agreements on key pieces of legislation.
Legislators are reportedly close on the operating budget itself, leaders said. The real holdups, as has been the case for weeks, are changes to state programs or policies, which some call reforms, that would reduce state expenses in future years. The main reforms involve revising state budget practices so projections for expenses and revenue balance for four years into the future, rather than two; making medical insurance plans for public school employees more like the health care plans for state employees; and revising the state pension systems so new employees will have a less generous system for early retirement.
OLYMPIA — A meeting among legislative leaders, top budget writers and Gov. Chris Gregoire continues into the evening as the group looks for a way to reach agreements on budgets and reforms connected to that spending plan.
Three reforms are reportedly under discussion: a way to plan for balanced budgets for four years, rather than the current two years; changes to public school employees' health benefits that eventually bring them in line with the state employees' system; revisions to state employees' pension plan that would eliminate some early retirement options for new hires.
Different versions of each exist in the House and Senate. With the clock ticking toward a midnight Tuesday adjournment, there's not enough time to keep passing different versions back and forth. Legislators will need to agree to one version of each reform bill, along with a final version of the revised operating budget and a capital budget, and get them passed in the same form by both chambers.
OLYMPIA — Legislative leaders and their top budget writers were given a proposal by Gov. Chris Gregoire that represents her “go-home” proposal, her staff said.
Democrats and Republicans met separately on the proposal — which includes a version of the K-12 insurance reforms, pension reforms and four-year balanced budget requirements — then returned to for another meeting with the governor.
A spokesman for Gregoire said her package was aiming for “a middle ground…one that would not make anyone happy.”
No details on what they are proposing and counterproposing. Anything they work out will have to be shown to the separate caucuses to see if it can pass.
OLYMPIA — Responding to a shot from Gov. Chris Gregoire that she doesn't need a “monkey wrench” thrown into budget negotiations, a campaign spokesman for Rob McKenna said the GOP candidate won't be releasing a full-blown budget on Monday.
Rather, it will be a statement of principles that a McKenna adminstration would use when compiling a sustainable budget.
The campaign announced this morning McKenna would hold a press conference Monday to announce a “budget policy paper”. Asked about the impact that would have on ongoing talks to close the current budget shortfall — something that's consumed a special session in December, the 60-day regular session and nearly two-thirds of the current special session — Gregoire said she didn't know what McKenna was planning, but a new budget proposal wouldn't be helpful.
“I don't need a sixth budget proposal,” she said. “I don't need somebody external…to throw a monkey wringe into” negotiations.
Charles McCray III, campaign spokesman for McKenna, said the budget proposal will be the latest in a serious of white papers that provide “guiding principles to push us in the direction of sustainability” on state spending, not a full-blown spending plan.
“He's not inserting himself into negotiations,” McCray said.
As for the timing of the press conference, McCray said that was when it “fit on the calendar.” It wouldn't be a problem, McCray added, “if they had done their job during the regular session.”
OLYMPIA – Gov. Chris Gregoire lifted her self-imposed boycott of bill signings Thursday and said legislators could be close to reaching a deal on cuts to the state’s operating budget. Or not.
“In the next 48 hours, we could have an agreement,” she said. “Then again, in the next 48 hours, it could all fall apart.”
OLYMPIA — In the lists of possible inducements a governor can offer to legislators to break a deadlock, “I won't sign your bills” might rank pretty near the bottom.
Or so it would seem today as Gov. Chris Gregoire prepares to sign 112 of the 177 bills on her desk in a signature scribbling marathon. She'll start at 1 p.m., and finish sometime after 7 p.m.
Considering Gregoire said less than a week ago “no budget, no bills” one might infer that means there is a deal to break the logjam over the state's operating budget, which is some $1.5 billion out of whack. But one would be wrong.
Although the governor was in meetings with legislative leaders this morning, her staff said, there was no deal in the works when the signings were scheduled. Actually, the schedule was starting to be sent out before the meeting, so folks happy that one or more of these particular pieces of legislation could make plans to smile for the cameras as Gregoire attaches her John Hancock to the appropriate line.
And the other 65 bills? Staff says they aren't sure yet. If not vetoed by midnight Saturday, those bills become law without the governor's signature.
OLYMPIA — A proposal to free up about $238 million for the state's troubled operating budget reported earlier today isn't a gimmick, it's a “business modernization proposal” that is made possible by the change of technology from hand-written account books to electronic funds transfers.
Basically, it's a result of the state collecting sales taxes every day, setting them aside in separate accounts, and paying them out to the cities and counties on a monthly basis.
Rather than try to describe the accounting ins and outs ourselves, we've posted the explainer the governor's office sent out inside the blog. Click here to read it.