(The following is the recent legislative update mail from Rep. Stanford)
Dear Neighbors,
The 2011 Legislative Session came to a close last Wednesday evening. After marathon negotiations, the House and Senate came to an agreement on the three issues that had been holding up negotiations: the capital budget, the operating budget, and reforming our state worker’s compensation system. I want to take a moment to tell you what these issues mean for you, as well as some news about our economy.
Operating budget passes, tax loophole bill fails to get 2/3 vote
I won’t try to sugarcoat it: this budget included painful cuts, and voting for it was a very difficult and emotional decision. However, it is our responsibility as legislators to come up with a balanced budget and to respect the voters’ demands that we not raise taxes.
This budget does that, and also salvages funding for some of our important public structures, including the Basic Health Program, Apple Health for Kids, Disability Lifeline, family planning, and public education. Our public servants continue to sacrifice, as they have for years: this budget agreement includes a 1.9% pay cut for teachers (down from the 3% cut the Senate proposed earlier this session), and a 3% pay cut for all other state employees.
After we passed the budget, the 11 freshman House Democrats moved forward with our bill to save the jobs of 1,300 K-3 teachers. We proposed to pay for saving these jobs by ending an outdated $100 million tax exemption for out-of-state banks – the only one of its kind in the entire country.
We asked our colleagues in the House a simple question: Should $100 million of taxpayer money go to a bank that made a $17 billion profit last year and helped to create the financial crisis, or should it go to support our kids? A majority of the House members chose kids, with 52 in favor of the bill and 42 against. However, that fell short of the 2/3 supermajority vote required to end a tax giveaway under I-1053. You can find out how our state legislators voted by clicking here.
Capital budget passes, debt limit deal reached
One of the main sticking points during the special session negotiations related to how much debt the state can take on to finance building projects in the capital budget. One side argued that a lower state debt limit would free up operating funds by reducing how much we spend on interest and would also create more stability.
On the other hand, a lower state debt limit simply increases costs for local jurisdictions. Compared to other states, we tend to fund capital projects – like upgrading school buildings or repairing sewer lines – at the state level rather than at the local level. This makes sense, because when the state issues bonds to pay for capital projects, we pay lower interest rates than when cities issue municipal bonds. Lowering the state debt limit will force local jurisdictions to take on those projects themselves, which means taxpayers will pay higher interest rates for capital projects.
In the end, we compromised and lowered our debt limit from 8.5% of the budget to 7%.
The capital budget included projects in our district that will stimulate job creation, improve our infrastructure, and protect our environment. This includes capital funds that I helped to secure for forest conservation in Bothell, as well as additional financing for the Bothell Crossroads project. Click here for a searchable summary of the capital budget.
Workers’ compensation reform
The last major issue that held up the budget was a proposal to change our state’s workers’ compensation system. Interestingly, workers’ comp. is a separate fund and has no impact on the operating budget. However, several lawmakers held up the budget process until changes were made to the system.
Last November, the voters of every county in the state overwhelmingly rejected an initiative to privatize our worker’s compensation system. They were worried that privatization would weaken the “sure and certain relief” for injured workers guaranteed by the law. I kept the will of the voters in mind as we debated major changes to our worker’s compensation system, which has served us well for a century.
We were able to identify several areas where we could save money through efficiency, and these reforms are projected to save hundreds of millions of dollars and reduce rates for employers. But the final proposal that was being used to hold the budget hostage went too far.
The proposal, known as “compromise and release,” authorized lump sum payments for injured workers instead of the ongoing benefit that currently exists. That means that desperate workers who can’t afford an attorney could be strung along until they agreed to take a buyout and give up their future benefits and right to appeal. It would take an estimated $1 billion out of the pockets of workers who are legally entitled to that compensation, and shift the costs onto social services funded by taxpayers.
That’s not right, and it’s not good for working families who are struggling to get back on their feet. That’s why I joined 25 other representatives in voting no on this legislation.
Latest economic numbers hint at continuing recovery
However, there are some bright spots in the news from Olympia. Two bits of information came out that provided relatively good news about our economy.
This week the state Employment Security Department (ESD) released its latest jobs report which shows Washington is making slow but steady progress on the road to recovery. We added an estimated 5,800 jobs last month, while the unemployment rate dipped from 9.2 to 9.1 percent. That makes for a net gain of 41,500 jobs since April 2010.
While government continued to shrink by 2,500 more jobs, significant increases were seen in construction, up 2,400; professional and business services, up 1,700; manufacturing, up 1,200; retail trade, up 900; transportation, warehousing and utilities, up 900; information, up 900; education and health services, up 900; financial activities, up 500; and wholesale trade, up 200.
If you’re one of the people on the hunt for a job, ESD is an excellent resource and can provide free help with interviewing skills, résumés and job referrals. Visit their website or look through job listings here.
In the mixed news category, this month’s Economic & Revenue Update shows that our state economy is still growing, but a bit more slowly than the past couple months. Revenue for April came in $157.7 million higher than projected in March, but that was due to larger-than-expected tax amnesty receipts. Without that boost, we would have actually collected $26.6 million less than projected. Our chief economist also discussed how the country's recovery has hit a "road bump" due largely to rising gas prices and slow GDP growth. You can read more here.
Getting a driver’s license becomes more customer-friendly
Getting a driver’s license, especially for the first time, has always meant a trip to a Department of Licensing office to take the driver’s exam. Often, it also meant waiting in a long line for your number to be called.
Now, thanks to a bill signed by the governor this week, you may not have to come into a DOL office to take the driver’s exam at all. And that means the long lines at some of the 30 DOL offices around the state will be getting shorter.
House Bill 1635 allows the state to accept the results of driver’s exams taken through an approved driver training school or a driver’s education program. Anyone under the age of 18 is already required by state law to pass a driver’s education course in order to be eligible for a driver’s license, and most driver’s education courses culminate with a behind-the-wheel exam. Instead of requiring those who pass that exam to take another one at the DOL office in order to get a license, the state will accept the course exam results and issue a license. For many families, this will eliminate the hassle of having to schedule an additional exam for their teenage drivers. Additionally, anyone over the age of 18 who chooses to take a state-approved driver’s education course can opt for the course’s driving exam to be the driver’s license exam, also eliminating the need for two exams.
With approximately 200 driver training schools across the state, people will have more options for where to go to take an exam. And those who must still go into a DOL office should soon find it less crowded, with staff able to serve more customers at the counter.
Get in touch with me!
With the close of the 2011 session, I have more time to spend at home in the 1st District and to discuss the issues that are important to our community. If you or your organization would like to schedule an appointment with me or my legislative aide, or to invite either of us to a local event, please feel free to email my aide at Ehsan.Aleaziz@leg.wa.gov. We will be available to meet at our local office, as well as various other locations in the district. We’ve already begun looking into legislation that has been proposed by concerned citizens, and we would love to hear any ideas that you have.
As always, please feel free to email or call my office any time and let me know what you’re thinking about the issues facing our state. Also, check out my facebook page for more regular updates and information. Thank you for reading, and I look forward to hearing from you.
Sincerely,
Derek Stanford
Representative, 1st Legislative District