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Session Wrap-Up: 2014 Supplemental Budget Avoids Elephant in the Room

Posted by Kim Justice at Mar 17, 2014 08:35 PM |
Filed under: State Budget

The 2014 Legislative Session concluded last week as scheduled with the passage of a supplemental budget that makes some changes to spending, while putting off larger decisions around education funding.  While little progress was made to increase funding for education this year, it can’t be avoided in the next budget cycle.

The budget spends a net of $115 million above appropriations in the original 2013-15 budget. The majority of the spending increase ($89 million) addresses changes in caseloads, inflation, and other maintenance level adjustments that allow the same level of state services. The remaining $66 million reflects the balance of policy decisions that either increase or reduce state investments.

As the graph below shows, compared to original funding levels for the two-year budget period, services that help families achieve economic security are reduced by $82 million. The bulk of the reduction stems from fewer people receiving services that help them find and keep a job, known as Temporary Assistance to Needy Families (TANF).  As we have explained previously, declines in TANF participation are not a sign of success, but rather a result of policy choices that have severely limited access to the program.  Every other area of state investment is increased compared to original spending levels for the two-year budget period.  

session wrap_1

The largest single investment in the supplemental budget is $58 million for textbooks and supplies in K – 12 classrooms. While this addition in funding helps in meeting McCleary and fully funding basic education, it is a very small investment compared to the more than $4.5 billion that will ultimately be needed. 

Outside of K-12, other state investments are made in education, include $25 million for scholarships for students pursuing a degree in a high demand field (Opportunity Scholarships), over $23 million in increased payments to early learning providers, and $5 million to provide financial aid to undocumented youth (DREAM Act).  See chart for more details on specific budget decisions. 

 session wrap_compare

 

The elephant in the room is the significant increase in funding that will be required to fully fund basic education by 2018. In the next biennium, at least $2 billion more will be needed for the next installment towards meeting McCleary. Yet, projected revenues are expected to fall short of simply maintaining current investments.  While this year lawmakers dodged the reality that new revenue will be needed, that truth will be inescapable next year. 

 

 

 

Inside Olympia Interview

Posted by Tara Lee at Mar 17, 2014 04:00 PM |
Filed under: BPC News

Executive Director Remy Trupin appeared on TVW's "Inside Olympia" last week. As the legislative session wrapped up, the discussion focused on the long-term.

 Remy discussed education funding and the impact of the McCleary decision, revenue options, and the next biennial budget. He was joined by Paul Guppy of the Washington Policy Center.

Watch the whole interview here. 

Remy TVW -March 14

Statement on Supplemental Budget: Puts Off the Hard Work

Posted by Tara Lee at Mar 13, 2014 09:15 PM |
Filed under: State Budget

Executive Director Remy Trupin released a statement this afternoon in response to the 2014 supplemental budget proposal: 

“Today’s budget deal puts off the hard work of responding to the McCleary mandate to fully fund education.  While the final budget does include some resources for education, it falls well short of what is needed.

Every year that the Legislature delays, kids, teachers, parents, and administrators feel the impact.  Tinkering around the edges will not get our kids and teachers what they need for success, nor will it set them up well for the future.

With the State Supreme Court requiring a funding plan from legislators by April 30th, it is imperative that work continues now to set our state on a path for fully funding education.  That is the only way we can make real progress next legislative session. ”

Budget Beat March 20th: Legislative Session Wrap-Up

Posted by Ben Secord at Mar 13, 2014 07:50 PM |
Filed under: Budget Beat

Join us for the next Budget Beat call on Thursday, March 20th from noon to 12:30 p.m. for a wrap-up of the 2014 Legislative Session. We will be joined by a round table of Budget & Policy staff to discuss the budget, highlights from this year's session, and what lies ahead for lawmakers in 2015 and beyond.

Register here.

We host the Budget Beat to bring you important updates from Olympia, timely policy analysis, and useful resources to keep you informed and help you make an impact.

Click here for an archive of previous Budget Beat calls. 

Budget Beat

Senate's Education Funding Plan Doesn't Add Up

Posted by Kim Justice at Mar 11, 2014 11:00 PM |

Legislation proposed by the Senate (SB 5881) to direct two-thirds of all state revenue growth to education for the next 10 years is another effort to divert attention away from the real challenges policymakers face in the years ahead. Rearranging current, inadequate levels of state funding will not magically produce new resources needed to invest in a world-class education system and rebuild our state economy.  The proposal would undermine both of those goals by forcing devastating cuts to health care, public safety, child care, and other important investments kids need in order to succeed in the classroom.  

The Senate plan banks on rearranging existing resources to make greater investments in education. However, projected revenue growth will not be enough in the next biennium to even maintain the same level of services that the state currently provides.  Plus, lawmakers will need to make the next installment towards meeting our obligation to fully fund basic education, which will cost at least an additional $2 billion. Basic math shows that this proposal is not an answer to meeting the state’s needs, nor will it get us any closer to meeting the demands of McCleary (see graph). 

 

SB 5881

 

The cost to maintain the same level of services in the state budget must be adjusted each year to account for more kids in the classroom, retiring baby boomers, changes in the prison population, and inflationary costs.  Yet the Senate’s proposal disregards this basic budgeting principle, just as it did when it proposed its 2014 Supplemental Budget.

Senate Bill 5881 is irresponsible and ignores the reality that additional resources are needed to truly meet our education funding challenges while maintaining other important investments. 

  

 

 

 

 

 

 

Senate Bill 5881: The Wrong Approach to Funding Education

Posted by Tara Lee at Mar 10, 2014 04:25 PM |
Filed under: BPC News

Our Senior Budget Analyst Kim Justice testified this morning before Senate Ways and Means against Senate Bill 5881. 

Watch it here on TVW. 

Here are her remarks, 

While we think it is important to have a long-term plan to fund education, we think this proposal takes the wrong approach for two reasons:

1. Revenue growth will not be enough in the next biennium to even cover the costs to continue what we do now, much less make the necessary investments in education. 

Based on the Senate’s proposed 2014 supplemental budget, revenues will fall about $70 million short of maintaining current services in the next biennium. At the same time, an additional $2 billion will be needed to make the next installment towards meeting McCleary. 

The math just does not work. Simply rearranging our inadequate resources is not going to fix our funding challenge.

2. This proposal would force deep and damaging cuts to other things kids need to be good learners, such as access to food, health care, and a stable home. 

Cuts to these services would undermine any investments made in education.

We are also concerned that deeper cuts to current services could violate federal and constitutional requirements. After over $10 billion in cuts in the last few years, it’s questionable that we could further reduce state services without violating legal requirements like paying for debt service, prisons, and providing adequate services for children in foster care.

The bottom line is that we have a resource problem. We cannot just rearrange current dollars to meet our needs. Instead, I would urge you to look for ways to raise stable, adequate revenue to both fund education and maintain the other investments that are intrinsically linked to the success of kids in the classroom."

 

Our Executive Director Remy Trupin released a statement on the bill this morning. You can read it here. 

 

Statement on SB 5881: Education by Starvation

Posted by Tara Lee at Mar 10, 2014 01:30 PM |
Filed under: BPC News

Our Executive Director Remy Trupin released a statement on SB 5881, which is being heard in Senate Ways & Means this morning. Our Senior Budget Analyst Kim Justice is testifying against the bill.

We agree that Washington state needs a long-term approach to fund education, however SB 5881 is absolutely the wrong way to go.  It would fund education by starving other areas of the budget. 

This proposal would force deep and damaging cuts to other things kids need such as access to food, health care, and a stable home. Cuts to these services means cuts to jobs, which would undermine any investments made in education.

SB 5881 relies on revenue growth,  which will not be enough in the next biennium to even cover the costs to continue what we do now, much less make the necessary investments to fully fund basic education. It just doesn’t add up.

Lawmakers need to come up with a way to raise stable, adequate revenue to both fund education and maintain the other investments that will help ensure kids can come to the classroom ready to learn.

SB 5881 is deeply irresponsible and hastily conceived. It is not the path for meeting our Court-order obligations to fund basic education. “  

 
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HIGHLIGHTS

Legislative Testimony

Senior Budget Analyst Kim Justice recently testified before Senate Ways and Means against a bill that would fund education at the expense of other budget investments. Watch it here. 

Kim 5881

Inside Olympia

Executive Director Remy Trupin appeared on TVW's "Inside Olympia" to discuss the budget, revenue options, and the impact of the McCleary decision going forward. The whole interview can be found here. 

Remy TVW -March 14


Budget Matters 2013

More than 300 people -- advocates, students, lawmakers, and policy experts joined us for our second annual policy conference. We heard from Heather McGhee, Jared Bernstein, and Governor Inslee.

Click here for video clips, photos, and PowerPoint presentations from the break-out sessions.

Our new video has highlights from the day. 

Heather McGhee


Save the date for this year's conference: Friday, December 12th, 2014 at the Washington State Convention Center in Seattle.