April 10, 2009

Notice
The United Ways of Washington’s 2009 legislative updates are now available on-line at http://www.unitedway-wa.org/leg_updates.html.

Contents
+ Quick Overview for Week
+ Early Learning Take-Aways for Week
+ Budget News
+ Bill Action
+ Subscription Information
+ Correction

Quick Overview for Week

• The current economic downturn is unprecedented in that the impact is felt broadly across the state at many levels, including personal family budgets; the availability of public services to our most vulnerable children; the health and security of business of all sizes; and the decision makers in Olympia who must make immensely difficult budget decisions that will have painful impacts to real people in our communities. The tone in Olympia is serious and intense. The difficult discussions legislative fiscal leaders are having about the intricacies of the budget proposals mirror the sense of hardship and uncertainty many families, workers, and employers are feeling across the state.
• Legislators understand the monumental job of balancing the budget that is before them now. As a result, top leadership from the House and Senate are meeting to reconcile the differences between budget proposals – no easy task. Traditionally the budget crafting process hits a threshold where more private conversations take place in order to allow for decision making and for reaching consensus. At this point, that threshold in the budget discussion has hit where more private conversations are necessary. But this year a couple things are unique. One, policymakers are hearing strong feedback at unparalleled levels from concerned constituents, advocates and stakeholders, and lobbyists on the issues that matter most.  They must then balance the feedback they are hearing about a large and diverse amount of issues. Two, discussion among top leaders in the House and Senate are more intense than ever before as the needs far outweighs the availability of dollars.
• Monday, April 6th, was the cutoff date for bills to be considered in the fiscal committees of the opposite house of origin so we saw a flood of activity in the fiscal committees leading up to this deadline. A house bill that was assigned to the Senate Ways and Means Committee needed to receive a public hearing and be voted out of the Committee on the April 6th cutoff in order to continue progressing through the legislative process.
• After Monday’s cutoff for fiscal committee action, the activity shifted to floor debate as legislators work hard to keep their bills of interest moving. For a bill to make it this far along shows there is good support, but it does not mean areas of debate are not still alive and healthy.
• The next cutoff is 5:00pm next Friday, April 17th, for bills to be considered in the opposite house. For instance, a Senate bill must be voted out of the House by the 5:00pm cutoff in order to become law. Once a bill clears both houses of the legislature, it will either go to the Governor’s desk for signature, or if any changes were made to the bill by the second house that considered the bill it will go to a conference committee where any differences will be reconciled before the bill can become law. Any bills that are necessary to implement the budget, known as NTIB bills, have exemption from cutoff dates. To see the full cutoff calendar, visit http://www.leg.wa.gov/legislature/calendar/cutoff.htm.
• Session is scheduled to close by or on April 26th.

Early Learning Take-Aways for Week

• Due to Rep. Ruth Kagi’s amendments noted below in detail, there has been some change to the early learning items in the House budget proposal. Notably, Rep. Kagi’s amendments account for expenditure of all the quality dollars from the early learning federal stimulus package, leaving no discretionary funds for incoming Department of Early Learning Director Dr. Bette Hyde.  Conversely, there have not been any public, formal changes made to the Senate budget proposal since its initial release.
• As we reported last week, all of the early learning budget items supported by the Early Learning Action Alliance except funding for the Washington State Child Care Resource and Referral Network (R&R Network) were reflected in the Governor, Senate and/or House initial budget proposals. Rep. Kagi’s amendment signals support for the protecting some the the R&R Network’s core services which are a critical part of the early learning framework in our state.
• House bill 1596 giving Washington women the civil right to breast feed in public places and protects them from discrimination when they nurse at places like parks, schools, and shopping malls has become law.

Budget News

Early Learning Budget Developments
On Tuesday, April 7th, the House Ways and Means Committee voted out the House budget bill, HB 1244, with a 13-8 vote.  Prior to voting out the bill, the Ways and Means Committee considered and adopted a number of amendments, including the following early learning amendments proposed by Rep. Ruth Kagi:

• Added $500,000 to the Quality Rating and Improvement Rating System (QRIS) using American Recovery and Reinvestment Act (ARRA) funds.  This is an addition to the $500,000 in state general funds already included in their budget.
• Modified timing on use of ARRA Child Care and Development Funds (CCDF) by shifting $1.7 million to the 2009-11 biennium.  This was a clarifying amendment.  It was always anticipated these funds would be programmed for the 2009-11 biennium.
• Set-aside $2.7 million in AARA/CCDF quality dollars to fund programs to improve the quality of infant and toddler child care through training, technical assistance, and child care consultation. Providing training and technical assistance for child care providers is currently in statute as a role of the R&R Network. Additionally, the R&R Network is currently the state’s largest conveyer of child care consultations, which is often done on-site and helps providers better meet licensing standards and increase the quality of their care. While $1.6 million in federal money is earmarked for the quality of infant and toddler care, Rep. Kagi’s amendment notably dedicates $2.7 million, signaling strong support for the investments in the early years. We know from compelling brain and economic research that investments in the early years make an impactful difference in positive outcomes for children yet, traditionally, early learning investments have not focused as strongly on the most early years. Also of note in this amendment is the support for protecting the R&R Network’s core services which are a critical part of the existing early learning framework.
• Moved the due date for the Joint Legislative Audit and Review Committee overview of the Department of Early Learning implementation and operation from July 1, 2010 to July 1, 2012.
• Allocated $127,000 in state General Fund for 2010 and $262,000 in state General Fund for 2011 to fund health care costs for licensed family child care providers.

As reported in last week’s update, the Legislature signaled intent to provide incoming DEL Director Dr. Bette Hyde with some discretion over programming of the ARRA/CCDF funds.  In the budgets released last week, the Senate programmed $1 million in ARRA/CCDF funds into QRIS and the House programmed $3 million in ARRA/CCDF funds to restore funding for the Career and Wage Ladder.  Amendments adopted by the House this week increase the amount of ARRA/CCDF quality dollars programmed, exceeding the minimum amount required for quality purposes. 
Of the early learning budget items supported by the Early Learning Action Alliance, all but funding for the Washington State Child Care Resource and Referral Network (R&R) are reflected in either the Governor, Senate or House budgets.  The amendment adopted in the House this week related to directing a portion of the ARRA/CCDF funds toward infant and toddler quality may mean that resources for the R&R may be restored should incoming Director Hyde make that determination.
Overall Budget Direction
During general discussion on the budget during the Committee hearing, Democrats expressed concern about the depth of cuts, but recognized proceeding with this budget provides policy makers with time to determine how best to move forward.  Republicans expressed concern with the over-reliance on fund transferring in the Democrats’ approach (including transfers from the ARRA/CCDF funds in early learning) as well as concern that this budget fails to reform government spending and relies too heavily on one-time funding.
To see details of HB 1244 including bill text and history, visit http://apps.leg.wa.gov/billinfo/summary.aspx?bill=1244&year=2009.
The Senate Ways and Means Committee has yet to hold an Executive Session on their budget bill, SB 5600.  There is speculation that given the unique circumstances facing legislators this year, traditional processes may be dismissed, and the Senate Ways and Means Committee may not adopt amendments in their Ways and Means Committee. 
To see details of SB 5600, go to http://apps.leg.wa.gov/billinfo/summary.aspx?bill=5600&year=2009.

Revenue Options
Potential revenue options continue to receive public discussion.  In her blog this week, Senate Majority Leader and economist Lisa Brown further explores the potential for a high-earner tax increase:  http://blog.senatedemocrats.wa.gov/brown/answering-some-questions-about-a-high-earners-income-tax. 
There is also discussion about a voter initiative to temporarily increase the sales tax.  Various interest groups, including labor and health care groups, have conducted public polling to gauge public support for an increased sales tax to support programs such as education (K-12 and higher education), health care and long-term care.  Senate Majority Leader Brown has stated that it is the position of her Caucus that any sales tax increase must be coupled with funding of the Working Families Rebate enacted in 2008 (modeled after the federal Earned Income Tax Credit).
Senator Brown also invites the public to weigh in on the proposed cuts in the budget by weighing in on an online town hall:  http://blog.senatedemocrats.wa.gov/brown/participate-in-my-online-town-hall/. 
Governor Gregoire met with legislative leaders on Tuesday to discuss temporarily lifting the school levy limit as a short-term solution to off-set proposed budget cuts in education. The Governor has suggested allowing schools across the state to collect $62 million more in levy dollars. Voters in 75 of the nearly 300 school districts in Washington have approved levies that would allow provide a bit more money than what state law currently allows them to collect. Currently levy amounts are capped at 24% of what state and federal funds provide. 

Bill Action
The education reform bills, HB 2261 and ESB 6048, continue to move through the process with HB 2261 under consideration in the Senate and ESB 6048 under consideration in the House. As we reported last week, the Senate has not been as open as the House to including early learning (specifically voluntary full-day kindergarten and preschool for vulnerable children) in the definition of Basic Education.  Since the House and Senate are both adapting the bills to suit their visions for education reform, the bills have undergone a lot of change. Thus, early learning advocates are supporting the House language around those two early learning items in the education reform discussion.
On Monday, April 6th, HB 2261received a public hearing in the Senate Ways and Means Committee and was then voted out with a party line vote (Democrat members in favor, Republic members in opposition) and now awaits debate by the full Senate.  When HB 2261 left the House, it was strong for early learning. Yet the Senate Early Learning and K12 Committee cleared the House language around the early learning items. When the bill got to the Senate Ways and Means Committee, some soft language for early learning was inserted in the bill through an amendment by Sen. Oemig. The amendment was Sen. Oemig’s attempt to get early learning somewhat back into the discussion of education reform in the Senate. However, it is a soft amendment to include language directing the Early Learning workgroup, following study, to recommend whether or not to include early learning in the definition.  Early learning advocates argue this process has already occurred when the Basic Education Funding Task Force conducted this review and recommended that the definition should in fact include targeted early learning services.  
Sen. Oemig’s bill, ESB 6048, is currently in the House. It was amended in the House Education Appropriations Committee in two significant ways for early learning. Below is the House language that early learning advocates are supporting.

• First, in Section 110 of the striker amendment (http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Amendments/House/6048.E%20AMH%20APPE%20H2836.2.pdf), a phase-in of voluntary full-day kindergarten in schools with the highest poverty levels is specified. Currently, kindergarten is included in the definition of basic education but all-day kindergarten is not. This striker amendment language in the current version of ESB 6028 makes voluntary all-day kindergarten a program of basic education. Also, the voluntary all-day kindergarten programs, as specified in the striker amendment language, would focus on social and emotional development among other skills, strong connections and communication with early learning providers and the all-day kindergarten program(s) would be required, and participation in kindergarten readiness activities would also be required.
• Second, section 113 of the striker amendment indicates “the legislature intends to establish a program of early learning for at-risk children and intends to include this program within the overall program of basic education.” This language is consistent with the recommendations of the Basic Education Finance Task Force but is receiving significant push-back from the Washington Education Association. Additionally, as we reported previously, the Governor has expressed objection to this inclusion of a program of early learning for vulnerable children in the definition of basic education in a letter she sent to House Speaker Chopp and Senate Majority Leader Lisa Brown.

These bills continue to generate much debate. While both bills are still alive, the House and Senate still differ in their visions of what should be achieved in education reform this year. As a result, each house changes the bills to fit their visions with the House being more inclined to support inclusion of a program of early learning for vulnerable children in the definition of early learning. This may be an issue that goes down to the wire.

The collective bargaining bill for child care center directors and workers, HB 1329, cleared the Senate policy committees last week and is currently awaiting action from the full Senate. 
Amendments were adopted in the Senate Ways and Means Committee to change the process to “opt in” where center directors and workers could decide whether to unionize or not.  This current proposal differs from the process that is already in place for family child care providers. HB 1329 as currently written does not contain parity language for those centers that are not part of the union.  If this is adopted, this would mean that the subsidy rate for centers accepting four or more subsidized children would be bifurcated depending upon union representation, unless the Legislature acts to increase the subsidy rate for the non-unionized centers. 
As currently written, the bill continues to exempt centers with four or more subsidized children and it was also amended to allow the Director of the Office of Finance Management to not institute a negotiated increase if the state’s finances cannot support the increase. 
This issue continues to be hot in Olympia and around the state as editorials and letters to the editor are expressing strong opinions on both sides of the issue. Enactment of this bill would create a national precedent around the “opt-in” option and policy discussions continue.
The House included $200,000 in its budget to implement this bill.  The Senate did not include any funding, signaling a higher level of support for this approach in the House. 

HB 1943 relating to Professional Development, was approved by a unanimous vote in the Senate on April 9th.  Before going to the Governor’s desk, the bill was first go back to the House for concurrence in amendments adopted by the Senate. 

Subscription Info
This weekly legislative update is brought to you by the United Ways of Washington in partnership with the Washington State Child Care Resource and Referral Network. Please forward this legislative update to your early learning network. To subscribe, contact Erica Hallock at erica.hallock@unitedway.org.  

Correction
Last week, in the Early Learning Budget section we reported that $7.1 million is needed to maintain the current funding level for evidence-based home visitation programs administered by the Council for Children and Families. The correct amount is $5.8 million.