United Ways of Washington
March 19, 2010

Contents
+ Week in Olympia
+ Early Learning Take-Aways for Week
+ Key Early Learning Bills
+ Federal Update
+ Subscription Information

WEEK IN OLYMPIA

• The 60-day 2010 session was scheduled to close Thursday, 3/11, yet it was riddled with significant budget challenges as policymakers faced a second consecutive year of unprecedented fiscal challenges. Throughout this session the House, Senate, and Governor had introduced three different proposed budgets with three different corresponding revenue packages showing the different philosophies and approaches to balancing the budget. The result was a gridlock on the budget at the scheduled close of session. Thus, an overtime, or special session, was called.
• The legislature went into special session on Monday, 3/15, in order to complete work on budget and revenue issues and approve a final budget. The week’s work has predominantly been about balancing the budget including determining the type and amount of revenue sources to offset deep cuts in order to avoid an all cuts budget to bridge the state’s $2.8 billion deficit. Gov. Gregoire urged legislators to conclude their work and pass a budget within 7-10 days, which would mean concluding special session this Sunday or next week. As of now, it is not clear when special session will end but legislative leaders have been commenting since mid-week that they are close to approving a final budget. Insiders are hoping special session will end this Sunday.
• There has been much debate on how to bridge the deficit. Legislative leaders have been looking at a mix of spending cuts, cost saving measures like furloughs by state workers, use of federal dollars, and securing new revenue sources such as targeted tax increases (e.g. taxing soda and candy), closing tax exemption loopholes, and the Senate’s proposal to implement a general sales tax increase. There are a series of bills that the House and Senate are currently considering and debating that deal with these various proposals. A major difference between the House and the Senate on revenue has been whether to raise the general sales tax which the Senate has proposed and the House opposes. While some legislators support a general sales increase, others support a menu of varied and targeted tax increases. The Governor reportedly also does not favor a general sales tax increase.
• As the state’s economy has weakened, the demand for services has risen in some areas. Policymakers aim to lead the state into a more robust economy and this session legislators have been challenged to find the right balance between making program cuts, finding efficiencies in service delivery that does not compromise quality, and securing revenue sources that are not overburdening.
• The Senate passed a budget bill (SB 6444) on Monday, 3/15, with a 25-19 (and 5 excused members) affirmative vote. Senate Majority Leader Lisa Brown indicated the budget passed was lean and included many cuts so that they were not providing as much support to higher education and the K-12 schools as Senate leaders would have liked. The bill then headed to the House for consideration. The bill is now in the House and awaits full floor debate and vote.
• The bulk of budget negotiations are typically behind closed doors. This year, it has been clear that there are great challenges to overcome when dealing with the details of striking the right balance between cuts and new revenue.

EARLY LEARNING TAKE-AWAYS FOR WEEK

• This week there has been a strong advocacy push from the early learning community on two main issues. One, advocating that legislators approve budget items for early learning items. Two, advocating that the Governor sign four important early learning bills into law in their entirety (see bullet below).
• In regards to early learning budget items, it is important to note that the current budget proposal is predicated upon certain revenue levels. Thus, if revenue options are not approved (i.e. bills outlining tax increases are not passed this special session) and revenue levels are not at the anticipated or hoped for level, then further cuts will be necessary. Therefore, there is still advocacy work to be done as legislators are now considering what the final budget will contain and what revenue options will pass.
• Throughout the week, there was strong advocacy push to encourage the Governor to sign early learning bills into law in their entirety from the Early Learning Action Alliance (ELAA), a statewide coalition of organizations advocating for early learning, and some of its individual participating organizations (e.g. MomsRising, Washington State Child Care Resource & Referral Network, the Washington State Association of Head Start & ECEAP). See a suggested advocacy message here from Children’s Alliance, the organization that staffs ELAA.
• All four bills included in ELAA’s 2010 legislative agenda (E2SHB 3141, 2SHB 2731, SSB 6759, and 2SHB 2867) have been signed by the Speaker of the House and the President of the Senate. The final step is for the Governor to take action. The Governor can sign a bill in its entirety into law, or veto all or a portion of the bill.
• This advocacy move is in response to a partial veto of the education reform bill (HB 2261) in 2009 which resulted in a program of early learning being excluded from the definition of basic education. That move was a surprise to the early learning community. Thus, this year the early learning community is advocating in support of early learning bills until the very final step – the Governor’s signature.
• In federal news, the Early Learning Challenge Fund has been eliminated from the Budget Reconciliation bill that will include health care and student loan reform. The Early Learning Challenge Fund was a federal initiative that Washington state had hoped to join which would have provided both policy and financial support to states building early childhood systems and services. (See more below in the “FEDERAL UPDATE” section.)

KEY EARLY LEARNING BILLS
Bills related to preschool (2731, 6759), child care subsidies for working parents (3141), elevating birth to three services (2867), and transferring the Infant Toddler Early Intervention Program (ITEIP) to DEL (6593) have all cleared the House and Senate and now await formal action from the Governor in order to become law. The Governor may sign the bills into law in their entirety or veto all or a portion of each bill. If the Governor does not take action in a set amount of days, it is as if the bill becomes law. Typically, the act of the Governor signing the bill, or the “bill signing,” is a time for the bill sponsor, advocates, and stakeholders who have worked particularly hard on the bill’s passage to celebrate.

Bills related to restructuring the Department of Social Health and Services (2197) and establishing collective bargaining for child care center workers (1329) were stalled during regular session and are considered “dead.” But they will not be officially dead until the close of special session.

The bill that proposed creation of a public-private home visitation services account (2687) was stalled in regular session thus is considered “dead.” However, the issue was taken up as budget proviso language in the House budget proposal. Whether this account will be established is one of many issues to be determined in budget negotiations.

Below is some analysis and summary of status on a number of pertinent early learning bills.

Preschool: Summary of session action and status of bills 2731 and 6759

• Bills 2731 and 6759 were the prime bills related to preschool under discussion this session. The attention both bills have gotten from advocates and policymakers alike and the thoughtful modification of 2731 throughout session has been a testament to the momentum behind expanding preschool access and affordability to ensure the youngest of learners in our communities have opportunities for high-quality early learning experiences.
• At times the bills were seen as dueling approaches with 2731 being the more bold approach by delving into the creation of a program of early learning (preschool for vulnerable 3- and 4-year-olds) to be included in the definition of basic education. This was a strategy to protect funding given the state has a constitutional obligation to fund basic education.
• Sen. Kauffman, the sponsor of bill 6759, has consistently maintained that 6759 should focus on studying the concept of a voluntary early learning program and examine whether it should (or should not) be included in the definition of basic education taking into account the Attorney General’s recent opinion on the matter.
• Legislative leaders were able to reach a compromise and both bills have passed the House and Senate which is a big success. Per ELAA’s letter urging the Governor to sign both bills into law in their entirety, 2731 “recognizes Washington’s need for a comprehensive PreK system that serves all eligible children. It builds upon the strong base we have in ECEAP, opens the door for children with disabilities, and allows families above the income eligibility to buy into a high-quality PreK program.” Also per the ELAA letter to the Governor, 6759 “builds off the immediate impacts of 2SHB 2731, to create a plan to continue to address outstanding questions about the direction and implementation of PreK in Washington in future years. It will help Washington continue to improve outcomes for all children across the state and will allow collaborative efforts to ensure that the early learning system is integrated into a seamless education system.”
  

2SHB 2731, “Creating an early learning program for educationally at-risk children,” sponsored by Rep. Roger Goodman has been signed by the Speaker of the House and President of the Senate and awaits signature from the Governor.

This bill has evolved over session through negotiations with House and Senate leaders and the advocacy community. The bill’s sponsor, Rep. Goodman, has been a maven in championing this bill. A survey of kindergarten teachers showed that less than half of 2004 kindergarteners were prepared for school. Rep. Goodman has indicated he sees closing the preparation gap as a way to help close the achievement gap seen in the later years.

Brain science and economic research has consistently shown that investments in high-quality early learning experiences, especially for the most vulnerable of students, leads to future cost savings down the line related to remedial and special education that can be hard on kids and hard on schools. Additionally, children who have high-quality early learning experiences in their environment (e.g. home, preschool, child care, etc.) have greater success in school and in life.

Early Learning advocates are largely pleased with the bill as passed by the legislature since it is in-step with today’s fiscal realities by having a phase-in plan spanning several years yet still aims to create a robust comprehensive preschool system that all children can have the opportunity to access regardless of income.  

What 2SHB 2731 says now:

• It creates a voluntary entitlement preschool program for 3- and 4-year-olds that will be phased-in starting from the 2011-12 school year to full implementation scheduled for the 2018-2019 school year. By or at the start of the 2018-2019 school year all students who are eligible should be able to participate (i.e. the "entitlement").
• Early Childhood Education and Assistance Program (ECEAP) eligibility and program standards will be used in the initial phase, or first two years, of implementation.
• Implementation after the first two years will be aligned with the implementation of the state’s all-day kindergarten program to maximize the benefits from the two programs. 
• In regards to funding, for the 2011-2012 and 2012-2013 school years, funding must be no less than what ECEAP was funded at for 2009-2011.  For longer-term funding, the Department of Early Learning (DEL) and the Office of Financial Management must report back to legislature by 12/1/2012 and annually thereafter regarding recommendations for phasing in additional funding.
• Beginning in the 2013-2014 school year, additional funds must be phased-in beginning in districts providing all-day kindergarten programs.
• Private-pay families can participate for a fee based on space available.

SSB 6759, “Regarding development of a plan for a voluntary program of early learning,” sponsored by Sen. Claudia Kauffman has been signed by the Speaker of the House and President of the Senate and awaits signature from the Governor.

This bill aims to address outstanding questions about the direction and implementation of preschool.

What SSB 6759 says now:

• Establishes legislative intent to examine the documents that recommend a program of early learning be included in the definition of basic education. These documents are: (1) Thrive by Five Washington, the Office of Superintendent of Public Instruction (OSPI), and DEL's Recommendations to the Governor for Action in 2010 (see p11/29, recommendation #1) and (2) the Quality Education Council’s 2010 report (see p16/31, recommendation #7). The Attorney General's opinion should also be considered.
• OSPI with DEL shall convene a technical work group to develop a comprehensive plan for a program of voluntary early learning. The barriers and opportunities must be examined of at least two options: (1) early learning included in the definition of basic education; and (2) early learning as an entitlement program which is either statutorily or constitutionally protected. The comprehensive plan should also include things like eligibility criteria, program standards, funding, and more.
• Changes were also made to the Early Learning Advisory Council (ELAC) in this bill. Those changes include:
• specifying ELAC’s role is to advise DEL on statewide early learning issues such as the availability of services, service alignment, developing plans for data development and professional development, and establishing performance measures;
• reducing membership to 23 members (from 25); and
• makes changes to the make-up of ELAC including reducing Thrive by Five’s membership to one seat from two and specifying ELAC shall appoint two members who have expertise in early learning to sit on the technical work group convened by OSPI and DEL which is tasked with developing a comprehensive plan for a program of voluntary early learning.

Working Connections Child Care (WCCC)
E2SHB 3141, “Regarding delivery of temporary assistance to needy families,” sponsored by Rep. Ruth Kagi has been signed by the Speaker of the House and President of the Senate and awaits signature from the Governor.

This bill makes a number of changes to the state’s Temporary Assistance to Needy Families (TANF) program.  A large component within TANF is WCCC which subsidies child care for low-income families. Per the ELAA letter to the Governor urging her to sign this bill in its entirety into law, this bill “will allow parents to focus on work and training, providers to better plan for the families they serve, and will prevent unnecessary disruptions in care. Research shows how important consistency and stability is for the development of children.  This is a smart step to take, especially considering the administrative savings we anticipate realizing through decreases in staff time spent on reauthorizations. This bill will move families into sustainable, long-term jobs with wages that lead to self-sufficiency.”
This bill streamlines the child care eligibility process for families enrolled in ECEAP, Head Start, and Early Head Start by implementing a 12 month reauthorization period which makes it easier for working families to receive continuity of care for their child(ren), while still requiring families to report changes in circumstance.

Elevating birth-three services
2SHB 2867, “Promoting early learning,” sponsored by Rep. Ruth Kagi has been signed by the Speaker of the House and President of the Senate and awaits signature from the Governor.

Home Visitation
HB 2687, “Creating the home visiting services account,” sponsored by Rep. Ruth Kagi cleared the House but stalled in the Senate. Yet it is important to note that the issue is still alive. The House’s proposal to create a public-private home visiting services account administered by DEL and Thrive by Five Washington was instead included as “proviso language” in the House budget, rather than as a bill. Whether the public-private account is established is a question that will be resolved as part of the ongoing budget negotiations. 

The impact of forwarding a proposal as budget proviso language rather than as a bill relates to permanency and timing.  Budget proviso language is in effect for the tenure of the budget – in this case through June 30, 2011.  In contrast, enactment of bill puts the policy into statute and a future law must be enacted to repeal or change the existing policy.  With proviso language, additional action would need to be taken to continue the policy in any form.

Administrative changes: Transferring the Infant Toddler Early Intervention Program (ITEIP) to DEL from the Dept. of Social and Health Services
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 has been signed by the Speaker of the House and President of the Senate and awaits signature from the Governor.

Administrative Changes: Changing DSHS
HB 2197, “Restructuring the department of social and health services,” sponsored by Rep. Mike Armstrong was not passed prior to scheduled close of regular session on 3/11.  Although the bill has received minimal legislative attention since early February, the bill was deemed “Necessary to Implement the Budget.”  This means the bill could be resurrected in conjunction with budget discussions.  Given the magnitude of major decisions before the Legislature, the desire to conclude budget negotiations within 7-10 days and the limited focus on this bill of late, it is unlikely the bill will advance this year.

Collective Bargaining for Child Care Center Workers
SHB 1329, “Providing collective bargaining for child care center directors and workers,” sponsored by Rep. Eric Pettigrew did not clear the Senate by the close of regular session thus is stalled and essentially considered “dead.” This bill received much attention in the 2009 legislative session and was revived this session, in the second year of its life span, with a vote to clear the House. However, the Senate ultimately chose not to take full chamber action on the bill this year.

While policymakers had healthy discussion last year and to some extent this year on how to better support high-quality in child care settings when this bill came up, there was much debate among policymakers, providers, and advocates on whether collective bargaining is a necessary format to increase the subsidy rate and further whether increasing the subsidy rate would in turn translate into better staff retention, better compensation rates, and other items that are correlated with high-quality staff and high-quality early learning settings. While this bill did not become law, Rep. Pettigrew has expressed commitment to continued work on how to raise the subsidy rate so providers who care for children from families that use child subsidies are compensated at a fair market rate.

FEDERAL UPDATE
The Early Learning Challenge Fund, (a federal initiative that Washington State had hoped to join which would have provided both policy and financial support to states building early childhood systems and services) has been eliminated from the Congressional Budget Reconciliation bill that will include health care and student loan reform. The savings from the student loan reform component were diverted from the Early Learning Challenge Fund to pay for health care reform.

Despite the loss of the Early Learning Challenge Fund, the health care reform bill still contains a lot of good stuff for children and families. Some 1.5 million infants and toddlers who don’t currently have health insurance will be covered if the health care bill passes. New funds will be provided for home visits to the parents of our youngest and most vulnerable children.

In a press conference with reporters, U.S. Education Secretary Arne Duncan said of the loss of the Early Learning Challenge Fund: “The president is absolutely committed on this issue, I’m absolutely committed, and we’re going to find another vehicle to help the early learning community.”

The Budget Reconciliation bill now goes to the U.S. House Rules Committee, probably on Saturday, and will be voted on in the House, probably on Sunday. Then the U.S. Senate will take it up. The legislation must be passed through both chambers without a single change, or the whole carefully negotiated deal will collapse.

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. Although the 2010 legislative update season is coming to a close, be sure you and those in your network are signed up for the 2011 legislative updates! 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