Security for Washington’s future today

Washington is in great economic shape. With the state at its peak, we have an opportunity to make significant investments in education and health care, and set aside money for the future. Senate Democrats have proposed an operating budget that is both sustainable and reflective of priorities from every corner of the state.

Our proposed operating budget for 2007-09, Senate Bill 5140, saves more than either the House or the governor’s proposed budgets. We leave $607.5 million in an unrestricted ending fund balance, and lock away $158.7 million in a constitutional Rainy Day Fund. Combined, we save $766.2 million – nearly twice the $400 million average total state reserves since the 1980s.

To support children at the most critical point in their development, our budget funds:

• 3,000 more slots for the Early Childhood Education and Assistance Program ($29.6 million)
• Early Childhood Education and Assistance Program targeted vendor rate increase of 17 percent in 2008 and 2 percent in 2009 ($12 million)

To help our students meet the increasing academic standards in K-12 education, our budget provides:

• Increased funding for special education ($80 million)
• Increased funds for the Learning Assistance Program ($31.2 million)
• Increased funding for school district transportation ($25 million)
• Eliminating breakfast and lunch co-pays for low-income students ($4.8 million)
• Increased funding for UW-Tacoma’s and Eastern Washington University’s autism centers ($300,000)

To create more room — and opportunity — in our higher education systems, our budget funds:

• Additional enrollments: 10,000 more slots ($110 million), including:

• General: 6,300 (3,600 for community and technical colleges; 2,700 for four-years)
• Math and science: 1,250
• High demand: 2,300

• Financial aid expansion ($19 million): Raising eligibility from 66 percent of the state median family income to 75 percent, which adds 3,200 students
• Faculty recruitment and retention ($32.4 million)
• College Bound Scholarship for low-income students ($8.1 million)
• Passport to College Promise Scholarship for current and former foster care youth ($3.3 million)

To ensure more Washingtonians receive the health care they need, our budget supports:

• Kids: To reach our goal of covering all children by 2010, we fund 39,000 more kids
• Families: We provide funding for up to five weeks per year of paid family and medical leave ($18.7 million)
• Seniors:

• Boarding home vendor rate increase of 6 percent in 2008 and 2 percent in 2009
• Collective bargaining agreement for home care individual providers

• BRC: To assure greater access to quality health care, we fund the Blue Ribbon Commission’s recommendations ($12 million)
• BHP: We expand the Basic Health Plan by 3,000 slots, bringing the total number of adults and children covered to 109,500 ($8.2 million)
• Public health:

• Expanding the Vaccines for Children program ($16.6 million)
• Local public health funding ($20 million)

To assist the vulnerable and lend a hand to those in need, our budget supports:

• Adding 350 community residential placements for developmentally disabled children and adults ($23 million state; $24.3 million federal)
• Community mental health worker wage increase ($12.5 million state; $7.8 million federal)
• Regional Support Network increases ($11.2 million state; $6.5 million federal)
• Employment services for 860 developmentally disabled individuals who recently graduated from high school ($5.2 million state; $1.1 million federal)
• Family support and respite services for an additional 1,100 families who support a developmentally disabled relative ($4.9 million)

To keep our communities safe and secure while reducing our need to build another prison in the future, our budget funds the Offender Re-entry Initiative ($32.9 million)

To strengthen our economic infrastructure, our budget supports:

• Tourism expansion ($7.8 million)
• Increased state contribution to the LIFT program, from $5 million to $10 million per year (no impact to general fund this biennium)
• Innovation Partnership Zones: $4.5 million, operating; $5 million, capital
• Associate Development Organizations ($3.1 million)
• Economic Development Commission ($500,000)
• Institute for Systems Medicine: Local governments can create health sciences and services authorities to promote bioscience-based economic development (no impact to general fund)

To preserve our natural resources for future generations, our budget supports:

• Puget Sound restoration and salmon recovery ($238 million, capital)
• Continuing the Columbia River Basin Initiative begun last session ($30 million, capital)
• Increased funds for the Washington Wildlife and Recreation Program ($100 million, capital)
• Mountains to Sound Greenway projects ($5 million, capital)
• State Parks projects ($59 million, capital)

These investments create a 4.5 percent annual growth rate in the operating budget between 2007 and 2009, and put Senate Democrats’ proposed budget in line with state revenue forecaster Dr. ChangMook Sohn’s projection of 6.8 percent for the 2007–09 biennium when state reserve capacity is utilized. Our budget proposal also comes in $443.3 million below the legal spending limit at the end of the biennium.

The budgeting choices Senate Democrats have made in the past two years have finally evened out the boom-bust cycle that has plagued budget writers for a decade or more. We’ve been cautious, and we plan to stay cautious.

We’re confident the state can make forward progress today in education and health care while protecting the economy from a rainy day tomorrow. Senate Democrats are proud to offer a sound budget that makes sustainable progress and puts us on a strong track for the future.