United Ways of Washington
February 26, 2010

Contents
+ Week in Olympia
+ Early Learning Take-Aways for Week
+ Budget & Revenue Information
+ Bill Status & Committee Activity
+ Subscription Information

WEEK IN OLYMPIA

• This has been an intense week in Olympia due to much work on budget and policy issues.
• The House (PSHB 2824) and Senate (PSSBB 6444) released their supplemental budget proposals on Tuesday bringing the total of proposals for consideration to three since the Governor’s proposal (HB 2824) was already released. Each proposal outlines different approaches to dealing with the state’s $2.8 billion deficit, or gap between planned state expenditures and expected revenue through July 2011. This is the second year policymakers have contended with unprecedented budget challenges. Last year the legislature dealt with a $9 billion deficit without major tax increases.
• While the House, Senate, and Governor have all released proposed budgets, it is important to note that only the Senate and Governor have released revenue packages, or a mixture of bills, that indicates how they intend to raise revenue. (See bullet below.) The House’s revenue package was anticipated Wednesday, 2/24, but has not yet been released.
• The House, Senate, and Governor are each offering different mixtures of cuts, spending, and balance transfers to balance the budget. In short, the Senate has offered a temporary increase on the sales tax and proposes larger revenue increase to avoid deeper cuts (see description here from Schmudget blog) whereas the Governor prefers targeted tax hikes such as a tax on candy and gum and closing tax loopholes (see description here from Schmudget blog). The House bill was anticipated to release a revenue package on Wednesday but delayed.
• Starting with the assumption that legislators and the Governor are all seeking ways to guide the state towards continue economic rebound, the three bodies have differing approaches and philosophies on how to do this. Given the fragile economy and high unemployment rate the stakes are high and complex to bridge the differences in proposed budgets and policies. Legislators are clearly concerned with minimizing cuts that would hurt vulnerable citizens and finding revenue sources that will not hurt families and employers. How to strike this balance is under much healthy and at times intense debate and examination by policymakers, staff, advocates, and citizens. With session scheduled to end on Thursday, 3/11, there is now less than two weeks to broker a compromise on the supplemental budget and mend any differences on policy bills. Policymakers, staff, and advocates worked long hours this week and that will likely be the case until the close of session.
• Numerous Town Hall meetings were held across the state last weekend. Thus, legislators had an opportunity to hear from their constituents before the release of the budget proposals and the most recent round of cutoffs for policy bills.

EARLY LEARNING TAKE-AWAYS FOR WEEK

• Given the state of the economy the early learning advocacy community, similar to other issue bases, is positioning this year to minimize program cuts. Like last year, advocates are fighting to minimize devastating program cuts that hit families, particularly vulnerable families, hard. At the same time, perhaps as a hopeful sign that the early learning movement is sustaining momentum, the early learning community is fighting to establish laws around new strategies that have minimal fiscal impact to the state budget such as inclusion of early learning for at-risk preschoolers in basic education, creating a fund leverage public dollars and attract private investments in home visitation services, and formalizing the Department of Early Learning’s (DEL) roles and responsibilities related to services for children ages birth-three and their families. Return on investment and brain development research shows that high-quality program investments in the youngest and most vulnerable children have the biggest pay off for both children and communities in the long-run resulting in a more thriving citizenry that will contribute to the tax base rather than draw from it.
• The proposed budgets from the House, Senate, and Governor are all mixed bags for early learning. See budget comparisons from the Early Learning Action Alliance staffed by Children’s Alliance and League of Education Voters.
• Of note, embedded in the Senate’s proposed budget is a move to give responsibility to DEL to meet Senate appropriation levels through child care licensing fee increases. It is not clear at this time how much the Senate feels licensing fees would need to be increased to meet their funding levels.  In many cases, especially during these tough economic times, child care facilities are already paying high fees and any increase could be the tipping point for them to close their doors or go underground. This type of fee increase can be a counter-productive move to the quality improvement efforts that advocates and policymakers have been fighting for in the past years.
• Also of note, the Senate budget proposal outlines a cut of more than $500,000 for child care subsidy policy staff, via a transfer of subsidy staff from DEL to the Department of Social and Health Services where child care subsidies (Working Connections Child Care) are delivered. This is counter to strategy outlined in the State Early Learning Plan and advocated for by the early learning community.  Since the creation of DEL, early learning advocates have pressed the state to eventually move Working Connections Child Care from DSHS to DEL in an effort to align the state’s largest child care program with child care policies and initiatives.
• As the policy committee cutoff dates approached on Tuesday, Thursday, and Friday, action on early learning policy bills were swift and in some cases dramatic due to differing philosophies between the House and Senate as well as taking into account fiscal feasibility given the $2.8 billion deficit. In a short period of time, differences on policies will need to be resolved. Leadership from both chambers will be seeking “wins” for their respective members as the close of session will signal the start of re-election season.
• Prior to the release of the Senate and House budget proposals on Tuesday, there was significant attention on early learning policy issues in the Senate. At Monday’s public hearing in the Senate Early Learning and K-12 Committee, early learning advocates turned out in large numbers to support  bills relating to inclusion of preschool for vulnerable students in the definition of basic education (2SHB 2731), home visitation services (3SHB 2687), and birth to three services (2SHB 2867). All three bills were then voted out of the Committee on Wednesday with significant amendments weakening the impact of the bills. See more in the Bill Status & Committee Activity section below.
• Action in the Senate Early Learning and K-12 Committee, coupled with the dissimilar budgets proposals, spotlight key differences in the House and Senate in their approaches to linking early learning with K-12 education. The House and Office of Superintendent of Public Instruction support the original elements of HB 2731 that stated preschool for vulnerable students should be included in the definition of basic education. The House’s proposed budget designates $98,000 for implementation of the bill. This is in contrast to policy proposals from the Senate and Governor that call for another study and stop short of inclusion. Furthermore there is historical indication that inclusion is an uphill battle in the Senate as well as with the Governor. The Senate’s budget proposal specifies $82,000 for implementation of SSB 6759, the alternative proposal to 2SHB 2731.
• As mentioned in the third bullet above, the Senate Early Learning and K-12 Committee has changed 2SHB 2731 significantly. On Wednesday, 2/24, the committee passed the bill as amended. The committee striker gutted the bill as written by Rep. Goodman. The striker amendment creates an entitlement program of early learning for educationally at-risk children beginning September 1, 2011. This means that children eligible for the program would be entitled to receive services yet it does not guarantee any particular funding level per slot. As of yet, the deeper discussions on eligibility, phase-in, and standards have not taken place.

BUDGET & REVENUE INFORMATION
The House, Senate, and Governor have all released budget proposals that each use a combination of new revenue, deep cuts, and balance transfers. Additionally, each assumes federal relief. The mixture looks different in each proposal. See a general summary here from Schmudget, a blog hosted by the Washington State Budget & Policy Center.

The Senate released its revenue package on Tuesday which is a mixture of bills that are each moving through the legislative process. The Governor has released a revenue package totaling $605 million in revenue, also in the form of a mixture of bills. The House was supposed to release its package on Wednesday, but delayed. This signals that consensus still needs to be achieved internally in the House. It is clear the Senate and Governor took differing approaches to revenue, with the Senate proposing a higher level of new revenue to reduce the amount of cuts necessary. At the press conference announcing their budget proposal, Senate leadership stressed that new revenue is needed to stave off cuts to K-12, early learning and higher education.  

Moving forward, the House, Senate, and Governor’s office will need to reach a compromise on a supplemental budget. The supplemental budget, in the form of a bill, must be passed by both the House and Senate by the close of session which is currently scheduled for Thursday, 3/11. Many discussions will be playing out behind closed doors as part of the political process and the public will surely weigh-in during public hearings on budget bills.

Status of budget bills
Both the Senate budget proposal and the Governor’s budget proposal received public hearings respectively in the Senate Ways & Means Committee and the House Ways & Means Committee on Tuesday, 2/23. The House released a package of 36 amendments to HB 2824 which is the House budget proposal. Both HB 2824 and SB 6444 are scheduled for executive sessions, or votes, in their respective Ways & Means committees Friday, 2/26, at 1:30pm.

Revenue options
On 2/24, Governor Gregoire signed into law SB 6130 which temporarily suspends provisions of I-960.  At the same time the Governor was participating in the signing ceremony, the Senate Ways and Means Committee was considering various revenue generating proposals.  Enactment of SB 6130 clears the way for a lower vote threshold to pass revenue enhancements.

This is a very relevant technical item moving forward as various revenue option bills are being considered.

Helpful info and links to budget information

• There are currently three budget proposals related to early learning:
• Proposed Senate 2010 Supplemental Operating Budget: Statewide Summary and Agency Detail. See pages 163-164 of document for DEL budget details. Also, see materials related to SB 6444.
• House Proposed 2010 Supplemental Operating Budget: Agency Detail. See page 160 of document for DEL budget details. Also see, materials related to SHB 2824.
• Governor Gregoire’s “Book 2” budget is outlined in HB 2824. See section 612 of bill for DEL budget details. Also, see materials related to HB 2824.

BILL STATUS & COMMITTEE ACTIVITY
Overview of legislative process
This week there were important cutoff dates relate to bills getting voted out of the House policy committees (Tuesday, 2/23), the House Appropriations committees (Thursday, 2/25), and the Senate policy committees (Friday, 2/26). As we have reported before, the cutoff schedule this year is unique based on the incremental cutoff for the three House Appropriations committees (e.g. Education, General Government, and Health and Human Services).

The next important cutoff dates are: Monday, 3/1, the last day for fiscal committees to consider bills from the opposite house (i.e. the last day for the Senate Ways & Means Committee to consider House bills that are still alive and vice versa); Friday, 3/5, the last day for bills to be considered on the floor by the opposite house (i.e. the last day for the full Senate to consider a House bill that is still alive and vice versa); and finally Thursday, 3/11, is Sine Die or the close of session.

Helpful links about the legislative process:

• Cutoff calendar
• Overview of legislative process
• “How a Bill Becomes a Law” simple text  and simple cartoon for young students
• Other educational and instructional material from the Legislative Information Center

Preschool for vulnerable students included in basic education
Quick status on conversation:

• 2SHB 2731 and SSB 6759 are alternative proposals. This week, the Senate was considering the 2SHB 2731 while the House was considering SSB 6759. Both have been voted out of policy committees and are “alive.”
• Action in the Senate on 2SHB 2731 has changed the bill significantly and strips the provision of including preschool for vulnerable students in the definition of basic education.

2SHB 2731
2SHB 2731 received extensive testimony at Monday’s Senate Early Learning and K-12 Committee, including supportive statements from Reps. Goodman (the bill’s prime sponsor), Priest, and Sullivan. The three House legislators acknowledged the challenging conversations surrounding inclusion or exclusion in basic education, but stressed this question has been repeatedly studied.  Additionally, Bob Butts of the Office of the Superintendent of Public Instruction conveyed Supt. Dorn’s support for the bill and also urged the Legislature to protect current investments in early learning.
The bill received extensive support from law enforcement (including the Mason County Undersheriff that also serves on the Shelton School Board), United Ways, and the early learning community.  Supporters stressed the connection between quality early learning opportunities and a successful K-12 experience, including reduced dropout rates.  They also emphasized the importance of maintaining the fidelity of high quality programs to achieve positive, lasting results.
The Governor’s Senior Adviser Leslie Goldstein reiterated the Governor’s opposition to including early learning as part of basic education. 
Testimony elicited few comments from the committee members.  Sen. Roach asked Goldstein if the Governor would veto the bill if it reached her desk (Goldstein replied that only the Governor could answer that question) and Chairwoman McAuliffe acknowledged that while there is understanding of the benefits of quality early learning, there are many strategies to achieve this outcome.
On 2/24, the Committee voted the bill out of Committee with significant amendments, reflecting the Senate’s different approach than the House.  The Senate stripped the inclusion of early learning in Basic Education, instead stating legislative intent to create an “entitlement” to early learning for educationally at-risk children beginning 9/1/2011. The bill uses ECEAP as the foundation for both program standards and eligibility and directs OSPI and DEL to develop recommendations for the Legislature on expansion. 
The significant impact of this change is that it removes the funding protections provided through inclusion in basic education.  Without this protection, funding is dictated by the amount appropriated through the state budget process.  As Rep. Priest noted in his 2/22 testimony, the Governor’s proposal to eliminate ECEAP for three-year olds demonstrates how vulnerable ongoing support can be in lean budget years.

SSB 6759
SSB 6759, “Requiring a plan for a voluntary program of early learning,” sponsored by Sen. Claudia Kauffman. The House Early Learning and Children’s Services Committee approved SSB 6759 on Tuesday, 2/23, making a technical amendment relating to the correct name for the Quality Education Council.

Given the Senate’s clear position that now is not the time for inclusion, the House approach is to keep as many bills alive as long as possible in order to advance the conversation regarding how best to prepare Washington’s early learners for K-12 education. These are the types of maneuvers we will see moving forward as the House and Senate bridge their differences.

The bill quickly moved to a public hearing in the House Committee on Education Appropriations on Thursday, 2/25.  Early Learning advocates highlighted the return on investment for quality early learning and urged committee members to continue momentum toward expanded access.

Elevating birth-three services

2SHB 2867, “Promoting Early Learning,” sponsored by Rep. Ruth Kagi.  2SHB 2867 is alive and moving. It was voted out of the House on a 66-32 vote and went on to the Senate where it received a public hearing in the Senate Early Learning and K-12 Committee on Monday, 2/22.  It received extensive support, with recognition that the birth-three age range is another critical period in a child’s development.

The Senate Early Learning and K-12 Committee voted the bill out on 2/24 with a striker amendment to remove the language that would have required a proportional investment in birth to three services for expanded investments in pre-K for 3- and 4-year-olds.

Home visitation
3SHB 2687, “Creating the home visiting services account,” sponsored by Rep. Ruth Kagi is alive and moving. It was approved by the House on 2/15 on an 89-9 vote and moved on to the Senate where it was heard in the Senate Early Learning and K-12 Committee on Monday, 2/22. It received extensive support from law enforcement, United Ways, Thrive by Five Washington and home visiting providers.  Law enforcement representatives spoke about the effects of generational child abuse and the link to subsequent criminal activity.  Home visiting professionals spoke of the value of providing support to new parents as well as the net savings when the children served by these programs enter school ready to learn.

Supporters stressed the opportunity to maximize existing public investments with private dollars.  Clallam County United Way Board Member Sandy Long spoke of how her United Way is aligning their funding with their commitment to Early Learning and challenged the Legislature to do the same. 

The Committee voted out on the bill on Wednesday, 2/24, with significant amendments.  First, the amendments shift the start date from July 2010 to July 2013.  The amendments also require Thrive by Five Washington to develop a “framework” for home visiting that includes clear goals, outcome measures and an evaluation process. 

Collective bargaining
HB 1329, “Providing collective bargaining for child care center directors and workers,” sponsored by Rep. Eric Pettigrew is alive. On Monday, 2/15, it received a public hearing gin the Senate Labor and Commerce and Consumer Protection Committee. It was voted out of the Committee on Thursday, 2/25, and the House budget provides $150,000 for implementation. This bill is scheduled for a public hearing in the Senate Ways & Means Committee on Saturday, 2/27, at 9:00am.  

Administrative changes
Transfer of ITEIP to DEL
SB 6593, “Transferring the administration of the infant and toddler early intervention program from the department of social and health services to the department of early learning,” sponsored by Sen. Randy Gordon. This bill is alive and still moving. It was voted out of the Senate with a 44-1 vote on Saturday, 2/13, and was then assigned to the House Early Learning and Children’s Services Committee where it is scheduled to receive a public hearing on Friday, 2/19, at 1:30pm. It was approved by the House Early Learning and Children’s Services Committee on Tuesday, 2/23, and will next be heard in the House Ways and Means Committee. Both the Senate and House proposed budgets include this transfer. 

Restructuring DSHS
HB 2197, per the 1st substitute version of the bill HB 2197 is renamed “Restructuring the department of social and health services,” sponsored by Rep. Mike Armstrong.  This bill has been deemed “NTIB,” or Necessary to Implement the Budget which means it is not “dead” and action can be taken up on it any time before Sine Die. There was no new action on this bill in the last week.

SUBSCRIPTION INFORMATION
This weekly legislative update is brought to you by the United Ways of Washington in partnership with the Washington State Child Care Resource & Referral Network. To subscribe please send the following info to Erica Hallock, CEO of UWWA, at erica.hallock@unitedway.org: (1) your name; (2) your organization name; and (3) your email address. We encourage you to forward the legislative updates to your networks. See previous updates at: http://www.unitedway-wa.org/leg_updates.html