Olympia prepares for Capital Lakefair 2023: An annual family-friendly festival complete with rides, fireworks and elephant ears!

Happy New Year! – Fiscal New Year, That is! July 1 signals the start of a new fiscal year and – in odd-numbered years – the start of a new biennium. While our wall calendars may say 2023, Washington state government is in State Fiscal Year 2024 as fiscal years run from July 1 through June 30. If you manage a state contract, you are likely well aware of this transition, as the end of a fiscal year often brings a flurry of activity to allow state agencies to “close their books.”

Many new laws go into effect at the start of new fiscal years, including the controversial drug possession law in response to the “Blake Decision.” For example, the 2021 Fair Start for Kids Act laid out a number of milestones to increase access and affordability to quality early care and education. Per the Fair Start for Kids Act, effective July 1, 2023, Working Connections Child Care monthly copayments for families earning between 50-60% of the State Median Income rose from $115 to $165 a month. The Fair Start for Kids Act also provided that at the start of the next biennium (July 1, 2025), eligibility for Working Connections Child Care will rise from 60% of the State Median Income to 75% of the State Median Income (rising from $4764 to $5955 a month for a family of three). Here’s a breakdown summary from our resources page.

State Revenue Updates

On June 27, the Washington State Economic and Revenue Forecast Council met to receive the final revenue report for state Fiscal Year 2023. The forecast projects higher than expected revenue for the biennium that just ended as well as for the upcoming 2023-25 and 2025-27 biennia. These increases are largely thanks to projected increases in capital gains revenues. For example, of the $327 million revenue increase forecasted for the 2023-25 biennium we just entered, $108 million can be attributed to higher than anticipated capital gains receipts and $89 million in higher sales tax revenues.

As a reminder, 2021 legislation affirmed by the Washington State Supreme Court in early 2023 created a 7 percent tax on the sale or exchange of certain capital gains assets valued above $250,000. The law took effect Jan. 1, 2022 and first payments were due by April 18, 2023. The enacting legislation provided that the first $500 million received be directed toward the Education Legacy Trust Account (ELTA) to support early learning and public schools and any dollars received above $500 million be deposited into the Common School Construction Account (CSCA).

Decision Package Process

(Photo Credit: Department of Children, Youth and Families)

As the graphic above demonstrates, there is little “downtime” in the state budgeting process because state agencies begin planning for budget requests for the next legislative session before the ink is even dry from the previous legislative session.

Like the legislative process, state budgeting also serves as a “funnel,” with the number of viable proposals narrowing down throughout the process.

Following direction provided by the Governor’s budget shop (the Office of Financial Management, or OFM), state agencies work over the summer months reviewing, vetting and modeling potential budget proposals (referred to as decision packages – or “DPs”) as well as agency request legislation (ARLs). This is a very intensive process as agencies weigh this executive guidance and agency priorities with other practicalities (e.g., supplemental budget year, legislative appetite, etc.).

In September of each year, state agencies officially submit their decision package and agency request legislation ideas to the Office of Financial Management (OFM). OFM then publishes all the submitted documents on its website so the information is available to the public. Once state agencies submit their proposals, the focus turns to OFM staff and the Governor as they enter “budget build,” reviewing the various decision packages and agency request legislation proposals.

This part of the process culminates in the release of the Governor’s proposed budget in mid-December annually. Note that even though we will have a new Governor in 2025, Governor Inslee will submit a final two-year budget in 2024 prior to leaving the Governor’s office.

It is also important to note that once the Governor’s budget is released, state agencies can only advocate for proposals contained therein. This means that if one of their decision packages was not included in the Governor’s budget, that state agency is limited to answering technical questions about the program/service and cannot advocate in the same way they can if the item is funded in the Governor’s budget. For this reason, decision packages have a short “shelf life.” Once the Governor’s budget is released, decision packages really only serve to provide data points and cost modeling information.

We will share a summary of key decision packages and agency request legislation after their release in September. In the meantime, check out our Deep Dive section from August for a refresher on how the decision package process works.

Impending Changes

(Photo Credit: Image by wirestock on Freepik)

Dominos Falling … I recently scrolled through the legislative website and was struck by the magnitude of change Olympia will see – regardless of the 2024 elections – and we have not even reached the time during election years when lawmakers looking to retire announce they are not seeking reelection. These announcements typically occur toward the end of the short legislative session in even-numbered years.

Governor Jay Inslee’s decision to not run for a fourth term as Governor set in motion falling dominos with the offices of Attorney General and Public Lands Commissioner opening up as those incumbents threw their hats in the ring for the Governorship. Shortly thereafter, longtime Insurance Commissioner Mike Kreidler announced he, too, would not seek another term.

These announcements set up a flurry of potential movement in the Legislature, particularly in the Senate, with at least four sitting Senators signaling interest in pursuing statewide elected office. Of course, some of these Senators could change their mind and decide not to run, or their quest for statewide office could come in a year when they are not up for reelection, so they would not have to give up their Senate seat if they did not prevail. If any sitting Senators do give up their Senate seats to seek statewide office, we can expect a number of their House of Representative seatmates to show interest in those Senate seats. More dominoes …

We already know the 2024 legislative session will not include longtime Senate Ways and Means Chair Christine Rolfes as she resigned her Senate seat effective mid-August to serve on the Kitsap County Board of Commissioners. Kitsap County Democratic Precinct Committee Officers selected Senator Rolfes’ House seatmate Drew Hansen as its top choice to fill the empty seat. The Kitsap County Board of Commissioners will make the final decision.

Legislative sessions are never boring and the magnitude of impending changes in personnel will make the “palace intrigue” of Olympia all the more fascinating.

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brief survey

The Capitol Campus is just showing off …

With swift action on the “Blake Fix” relating to drug possession laws and treatment during a one-day special session May 16, 2023, the Legislature officially concluded its business, ushering in the beloved season simply known as “interim.”

This edition of “Notes from Olympia” includes a wrap-up of budget and policy items, revenue updates and other key announcements.

Bill Signings Completed

Bill action. Following adjournment of the Special Legislative Session on May 16, Governor Jay Inslee signed the final bill passed by the Legislature (which, fittingly, was 2E2SSB 5536 related to drug possession and treatment, the topic of the special session).

Although the Governor signed into law most of the bills that reached his desk, he did issue some vetoes and partial vetoes. One bill he vetoed in its entirety was SHB 1590, which would have changed the membership and subcommittee structure of the Department of Children, Youth and Families Oversight Board. In his veto letter, Governor Inslee expressed his preference for a different approach for including the voices of individuals with expertise in educating youth in juvenile institutions or foster care.

Start Early Washington updated its bill tracker on its resources page to reflect the Governor’s actions on early learning related bills.

Budgets signed. The Governor signed both the Capital and Operating budgets, with some partial vetoes. Avid readers of our trivia section will be pleased to hear the Capital budget provision to restore the historic skylights in the Legislative Building in advance of the building’s 100-year anniversary of its opening in 2028 was approved.

Those of you, however, hoping to access the top of the Capitol dome via its steep 262 stairs for the first time since 2007 will be disappointed to hear that Capital budget provision was vetoed due to safety concerns. As a result, this photo outside of the cupola atop the Dome will not be recreated anytime soon:

The year of this photo is unknown, but my educated guess is the late 1960s- early 1970s based on the snazzy fashion choices.
(Photo Credit: Washington State Archives)

Start Early Washington’s resource page also includes a breakdown of new investments in early learning related items. Our initial math shows these investments total just south of $740 million in new federal and state funding. One of our interim projects is to dive deeper into these numbers. Our working hypothesis is that this is the largest increase in state funding for early learning to date.

Revenue Collection Update

Each month, the Washington State Economic and Revenue Forecast Council produces updates on revenue collections and other economic trends (such as unemployment and housing construction).

May revenue collections came in $16.4 million lower than the March forecast. Adding in the April revenue collections, cumulative revenues are now $21 million lower than forecasted. If actual revenue collections continue to come in lower than forecasted, adjustments to the 2023-25 biennial budgets will need to be made when the Legislature returns in 2024.

Chh-Chh-Chh-Changes

Near the end of the bill signing period, Governor Jay Inslee announced he does not plan to pursue a fourth term as Governor in 2024, setting off a chain of subsequent declarations (official and “exploratory”) of intent to run for various offices. We could also see movement in the legislative makeup – and chairmanship(s) of key committee(s) – prior to the start of the 2024 legislative session as a number of sitting lawmakers threw their names in for consideration for local government roles.

As a result of these announcements, change will be the theme in Olympia at least through 2025.

A New Policy and Politics Resource

The Washington State Standard, a great new, nonpartisan resource focused on Washington state government, is now available free of charge. Reporters for the Washington State Standard include longtime Olympia reporter Jerry Cornfield (formerly of the Everett Herald) and Laurel Demkovich who covered Olympia for the Spokesman Review. The Washington State Standard has quickly become a “must read” for those interested in policy and politics at the state level. Sign-up to receive a daily update in your email.

One of its first stories focused on child care, analyzing the gaps in our system regarding family access, affordability and provider compensation.

Final Note – Update on the Newhouse Building

Now that I’m no longer in Olympia on a daily basis, I rely on colleagues and Twitter to keep me updated on the status of the various construction projects that entertained me during the session. Thanks to DCYF Government Affairs Policy Advisor Mary Sprute Garlant for this status update on the Newhouse Building construction as of May 4. My “sources” tell me the building is now completely demolished.

Newhouse Building construction as of May 4, 2023
(Photo Credit: DCYF Government Affairs Policy Advisor Mary Sprute Garlant)

Thanks for reading! We will be sharing updates periodically throughout the legislative interim. Feel free to share any ideas for deep dives or trivia.

As the program analyst for Start Early Washington, Anna Contreras is always thinking about what works best to support the children and families that participate in Washington’s home visiting programs. She collects and analyzes a mixture of quantitative raw data as well as the often-overlooked qualitative feedback needed to truly improve and enrich the home visiting experience for children and families. This includes collating information gathered from numerous home visiting professionals across the state.

Anna has dedicated her professional career to understanding how relationship-based supports impact lifelong outcomes for young children and their families. She’s particularly interested in families grappling with adversities, such as migrant and seasonal farmworkers, immigrant communities and dual language learners. “My Latinx background not only identifies me but defines me. As a second-generation immigrant, I relate to the challenges of those who are growing and learning from their native culture while also adjusting to new societal norms and navigating American culture.”

Anna’s commitment to improving the home visiting experience and creating more equitable and inclusive systems that recognize and respect diversity begins with her mother. Home visiting has been part of Anna’s life since the day she was born. Anna’s mother received home visiting services in Washington state when she was pregnant with Anna, a support that was not provided for Anna’s siblings. Because of this experience, her mother was better connected to her community’s resources and felt more comfortable talking through the various roadblocks she was experiencing. In addition, her home visitor helped her better understand the services and supports available to her. They were a trusted partner to nurture and support Anna’s healthy development. This was especially important to Anna’s mother because she didn’t have her mom (Anna’s abuela) near at the time.

Recalling her personal experiences and her experience helping her parents navigate data collection and other complex information, Anna finds it essential to create inclusive forms and dashboards for the home visiting support team.

Anna also shared the importance of considering the impact on the person collecting information. “When creating forms, we consider the impact on the staff asking the questions — such as, what does the answer mean for the respondent? How is this information going to be utilized? What are the unintended consequences for the person sharing the information? People must feel comfortable enough to share this information. They also want to ensure that necessary changes will follow and that they are not wasting their time answering another set of questions; it is hard to be vulnerable, especially when you are unsure of what will happen next with the information provided.”

Whether it’s a first-time parent connecting with a home visitor or staff sharing their experiences with each other, trust and respect are vital to collecting meaningful information. Relationship-building is foundational to Start Early Washington’s work and a key ingredient to affecting meaningful change.

“As a first-generation college student, relationship-building was important to me. Feeling seen and heard was fundamental to my growth and development, and therefore I carry that experience in my work today.” Feeling accepted, safe and connected to a community of support helped push Anna past moments of self-doubt and projected her toward future success in her home life, career and beyond.

The Subtle Differences

Data showcasing the subtle differences in home visiting provider experiences and the depth of variation between the family dynamics they support helps inform the resources and learning opportunities needed for the home visiting field as well as the various elements required to support the children and families they partner with. In addition, such data-driven insights are vital to maintaining an inclusive and collaborative decision-making process for system improvements.

Anna primarily works with Start Early Washington’s home visiting team to improve home visiting services and outcomes for children and their families in Washington state. Anna works closely with the home visiting team to assess customized coaching and mentoring offered to home visiting programs. Similarly, she evaluates how Start Early Washington can best support comprehensive learning opportunities, transparent data collection and thoughtful analysis.

For example, surveys are designed to answer questions such as: Does the home visiting field have the professional development opportunities they need to grow their skills? What additional support is needed for home visitors to feel confident in their role? How can Start Early Washington help home visiting professionals achieve individual and programmatic goals? These questions and more help to ultimately measure how we can support positive system changes —such as gains in knowledge, better time management, improved staff retention and the creation of better family engagement protocols.

Qualitative feedback helps Anna understand the story of home visiting in our state, connecting the necessary data points to improve system outcomes and inform policymakers. Data allows us to see how and when priorities shift for programs, and feedback and discussion help us understand what success and challenges look like for home visiting programs and the families they work with. Qualitative feedback from our home visiting team helps uncover trends in discussions, typically hidden among quantitative numbers alone. This data complements ongoing performance monitoring to ensure continuous quality improvement for home visiting professionals statewide.

Anna’s work strengthens home visiting programs by showcasing the power of relationship-based work, reinforcing the deep connections and trust between home visitors and families. Recognizing the unique identities, heritages, cultures and human emotions while celebrating differences and bolstering representation validates and supports an environment of inclusion for the entire home visiting system.

Trust Is Pivotal

While data is critical to support a high-quality system, trust is pivotal to accessing quality information and rich feedback. Some things for home visiting teams to consider when collecting data:

• Use simplified language; the frame of information is important.
• Are questions clear enough to capture the needed information?
• Do all parties understand how the data collected will inform the home visiting system?
• Does the reader understand their rights and role in responding to the questions?

Co-Creative Learning Opportunities for Home Visiting Professionals

Start Early Washington facilitates learning opportunities as well as unstructured co-creative opportunities for home visiting professionals statewide to build knowledge, seek mentorship, connect and decompress with others in the field experiencing similar situations. Together, they work through obstacles and celebrate successes; since 2020, Start Early Washington’s work has reached nearly 8,235 children and families. Our approach to supporting the home visiting field includes mindfulness practices, reflection, sharing experiences and knowledge that builds trust in a strengths-based learning environment.

The Washington State Legislature adjourned “Sine Die” just after 10 p.m. Sunday, April 23.

Following is a recap of key actions since our Friday morning release of “Notes From Olympia.”

Release and Passage of 2023-25 Budgets

Both the House of Representatives and the Senate passed the Operating, Capital and Transportation budgets over the weekend. The Capital and Transportation budgets passed with broad bipartisan support, while the Operating budget passed on a party-line vote in the House and saw 8 Republicans joining Democrats to vote for passage in the Senate.

Of particular interest to loyal “Notes from Olympia” trivia readers, the final Capital budget does include funding to restore the skylights above the Senate and House chambers in time for the Legislative Building’s centennial celebration in 2028.

Start Early Washington updated its budget comparison document on our resources page to reflect the final early learning related budget items. Despite concern of a potential economic downturn as well as multiple competing demands, the adopted budgets contain significant investments for a number of early learning programs.

Lawmakers worked incredibly long hours to craft this budget and would no doubt appreciate hearing a “thank you” for prioritizing early learning investments. Legislative email addresses all share the format of firstname.lastname@leg.wa.gov. Specific emails can be found on the legislative website.

Updates on Outstanding Bills

We’ve updated our bill tracker on our resource page to include this weekend’s bill activity. Remember, bills that did not advance in 2023 can be revisited in 2024.

In what turned out to be the final bill vote for the 2023 legislative session, the House voted to concur in Senate amendments to 2SHB 1550 on a 60-37 vote, sending the legislation relating to Transitional Kindergarten to the Governor’s desk. Earlier in the evening, the Senate adopted a striker to 2SHB 1550 on a 39-10 vote.

As passed by the Legislature, the bill:

• Codifies Transitional Kindergarten and reconstitutes it as Transition to Kindergarten (TTK).
• Directs the Office of Superintendent of Public Instruction to develop rules for the administration of and standards for TTK. Initial rules must be adopted prior to the start of the 2023-24 school year with permanent rules by the 2024-25 school year.
• Provides that only school-district authorized charter schools may immediately offer TTK and the charter commission authorized charter schools may offer TTK beginning in the 2025-26 school year.
• Defines eligibility for TTK as those children who have been determined to benefit from additional preparation for kindergarten and who are at least four-years old by 8/31 of each year.
• Requires, as practicable, TTK programs prioritize children from lowest income families and those most in need of additional preparation.
• TTK is not considered a child-level entitlement.
• Unless excused by parents or caregivers, requires administration of WaKIDS at the start and end of the school year.
• Calls for a local child care and early learning needs assessment prior to beginning or expanding a TTK program. Also directs OSPI and DCYF to develop statewide coordinated eligibility, recruitment, enrollment and selection best practices.
• Provides that TTK programs must follow OSPI developed guidelines related to best practices for site readiness, developmentally appropriate curricula and professional development. OSPI must also develop a process for site visits to provide feedback on these guidelines.
• Prohibits charging of tuition as well as excluding children due to the presence of a disability.
• Allows TTK programs to blend and co-locate with other early learning programs.
• Provides that TTK students will be counted as a kindergarten student for funding purposes, but reported separately (to be able to get an accurate count of the number of TTK students). Funding is equivalent to the prototypical school funding model (including transportation), but is not considered part of basic education.
• Directs DCYF to make administrative changes to better align early learning programs.
• Finally, directs the caseload forecast council to forecast for TTK.

You can track the scheduling of bill signings on the Governor’s webpage. The Governor must act upon all bills that reach his desk by May 15.

Legislative Leadership Change Announced

On Sine Die, House Minority Leader JT Wilcox shared his plans to step down as the House Republican leader. The leadership change will occur when the House Republican Caucus selects a new leader. During an interview on TVW, Representative Wilcox stated he does plan to continue in the House.

Thank you for your partnership with us through the 2023 legislative session. We look forward to continuing our shared work to build more equitable systems for children and families in Washington state.

(Photo Credit: Erica Hallock)

This edition of “Notes From Olympia” will serve as our final weekly newsletter, signaling the end of the 2023 legislative session.

What Is Next?

• Look for an email early next week, which will include final budget details, bill status updates and a recap of the last days of the legislative session.
• We will share an update covering Gov. Inslee’s actions mid-May.
• Our “Notes From Olympia” will continue periodically during the interim to keep you abreast of early learning policy developments.

Trivia!

Which Governor was associated with “The Kick” incident in 1913?

Budget Details

Conference reports for the2023-25 biennial budgets will be released by Saturday of this week and voted upon prior to legislative adjournment. Specifically, the Operating budget details will be released Saturday, April 22, at noon. Because these actions will occur after this week’s newsletter publication, we plan to send out an email early next week including the final budget details as well as a recap of the last days of the legislative session. When completed, the budget summary will be available on Start Early Washington’s resource page.

Legislative Updates

With the Legislature poised to adjourn “Sine Die” Sunday, April 23, this week focused on finalizing actions on outstanding bills while budget writers and the amazing staff worked to put together the Operating, Capital and Transportation budgets.

As of this writing, only one active early learning related bill has not advanced to the Governor’s desk – 2SHB 1550, related to Transitional Kindergarten. We will include a status update in a post-session email. You can also check the status of specific legislation on the legislative website or via Start Early Washington’s bill tracker on our resource page.

As a reminder, you can track the status of gubernatorial bill signings on this webpage. The final day for Governor Inslee to act on bills that reach his desk is May 16.

After gubernatorial action, attention turns to state agencies as they start implementing the policies and related funding included in the enacted bills. Implementation planning can take weeks to months, depending on the issue or program and the extent external parties are involved in development. Additionally, state agencies are beginning to develop decision packages outlining their policy and funding priorities for the 2024 legislative session. The legislative cycle is always in motion!

Legislators burning the midnight oil during the final days of legislative session
(Photo Credit: Erica Hallock)

Trivia!

What was the cost of constructing and designing the Washington State Governor’s Mansion in 1909?

Legislative Updates

Wednesday of this week was the final cutoff for bills to pass out of the opposite chamber. However, there is an exception to the cutoff deadlines for bills deemed necessary to implement the budget (NTIB). Both bodies put in long hours this week, with the House of Representatives working well into the early morning hours Tuesday and Wednesday. For a recap of the final steps of the legislative process, check out last week’s “Notes From Olympia.”

What to expect in the final 10 days. On Sunday, April 23 the 2023 legislative session comes to a close, also known as Sine Die (a Latin term meaning without a fixed day for future meeting). During the last few weeks of session, many bills will be amended to get them over the final hump. Some of the amendments will be done to reduce the cost of implementing the proposed policy or result from negotiations over policy approaches between the Senate and the House. It is a good idea to continue to check for amendments on bills you care about. You can do so by accessing the most recent bill reports or scrolling down to the bottom of the bill page to see if amendments have been adopted.

For example, House Bill 1525, which would provide child care subsidy eligibility to parents in state approved apprenticeship programs, was amended in the Senate Ways and Means Committee April 8. The amendment is toward the bottom of the page on the left and the adopted action (amended onto the bill) is at the bottom right of the table. An “Effect” section at the end of the amendment describes what the amendment would do.

In addition to wrapping up bills, the Legislature must finish, publish and pass the 2023-25 biennial Operating, Capital and Transportation budgets. Typically, the budget details and bills are released and voted on in the last few days of session. Now is the time to advocate for any additions or changes to the budget, as the Legislature will take an up-or-down vote (no amendments) once it is public and ready for action next week.

Bill Tracker: Key Early Learning Bills

As the legislative session progresses, our resource page will be updated with a weekly bill tracker. Please note that legislation changes quickly, so the version on our website may not represent a bill’s latest version as it is published the Thursday of each week.

Gorgeous cherry blossoms brighten the Capitol campus
(Photo Credit: Erica Hallock)

Trivia!

Washington state was admitted to the Union in 1889. How many years did it take for the state to adopt an official state flag?

The Homestretch: What to Expect at the End of the Legislative Session

Monday was budget day in the House of Representatives with debate, consideration of amendments and ultimate passage of the Operating and Transportation budgets. As a reminder, the Washington Fiscal Information website contains links to the budget bills and their details. And Start Early Washington’s resource page includes a comparison of the various early learning budget-related proposals released to date.

As we near the final weeks of the legislative session, the Legislature faces deadline after deadline in rapid succession. After the April 4 fiscal committee cutoff earlier this week, attention quickly pivoted back to Floor activity as lawmakers worked to debate and pass bills that originated in the opposite chamber in advance of the April 12 deadline. At the same time, budget writers continue negotiations to reconcile differences between the two bodies’ approaches prior to the scheduled April 23 adjournment. Legislators, staff and lobbyists are all fatigued, but an end is in sight and the beautiful cherry blossoms throughout the campus are inspiring.

Legislative Lowdown

I have seen a lot of questions recently about the process for a bill to become a law during these frenetic final days. As we all know, this process is far more complex than Schoolhouse Rock led us to believe. The legislative website contains a full description of this process.

Here’s a quick synopsis:

Bills not amended in the opposite chamber. Bills that pass out of the opposite chamber without any amendments move directly to the Governor. For example, if the Senate approves a bill exactly as it left the House, the bill moves straight to the Governor’s desk.

Bills amended in the opposite chamber. Bills amended in the second body must return to its original chamber so that entity can decide if it will “concur” with the other body’s changes. Bills amended in the opposite chamber are placed on the Concurrence Calendar in the House and the Concurring Calendar in the Senate (it would be interesting to learn why the slight difference in the naming of these calendars).

What happens if the first body disagrees (or fails to concur) with amendments made in the opposite body? When the original body does not concur with the amendments made in the opposite chamber, the originating body can request that the opposite chamber “recede” from its amendments. If the second body agrees to recede, the bill proceeds to the Governor.

If the second body does not agree to recede from its amendments, one of the bodies can ask for a “conference committee” representing members from both the Senate and House to work to resolve differences. (In legislative lingo, you may hear the statement that a “bill has gone to conference.”). If the conference committee is able to agree, it will produce a conference report that would then go before both chambers. Importantly, conference committee reports cannot be amended after adoption. If both bodies approve the conference committee report, the bill moves to the Governor. If one of the bodies does not approve the conference committee report (or does not take a vote), the bill fails.

After the votes are taken, do bills go to the Governor? Not quite. After bills pass third reading in both chambers, they must first be signed by the Speaker of the House, the Chief Clerk of the House, the President of the Senate and the Secretary of the Senate prior to transmittal to the Governor. This process is called enrollment. Prior to recent advancements in technology, the signed, paper bills were physically submitted to the Governor’s office. It is, of course, now done electronically, but there can still be a lag before it reaches the Governor.

Does the Governor have a time limit for acting on bills? Engrossed bills must be acted on by the Governor within five days of receipt unless the bill passes the Legislature with fewer than five days before adjournment. In that case, the Governor has 20 days to act on the bill (excluding Sundays). For the 2023 legislative session, the five-day cutoff is April 17. This means that bills that reach Governor Inslee’s desk by April 17 must be acted upon within five days.

The Governor may sign, veto or line-item veto parts of bills and usually executes at least a few vetoes every year for various reasons. It is possible for the legislature to override a Governor’s veto, but it does not happen often, particularly when the Governor and the legislative chambers are led by the same party.

The Governor’s website includes schedules of expected bill actions. Note that bill signings are no longer open to the general public but can be view on TVW.org.

Bill Tracker: Key Early Learning Bills

As the legislative session progresses, our resource page will be updated with a weekly bill tracker. Please note that legislation changes quickly, so the version on our website may not represent a bill’s latest version as it is published the Thursday of each week.

Let the blooming begin!
(Photo Credit: Erica Hallock)

Trivia!

The Senate Capital Budget contains funding to restore skylights in the Legislative Building that were part of the original building design. What year were the skylights removed and what were two reasons for their removal?

State Supreme Court Upholds Capital Gains Tax

On March 24, the state Supreme Court issued its long-awaited ruling on the capital gains tax, declaring that the tax is constitutional. Capital gains constitute profits made by individuals from the sales of stocks, bonds and other capital assets (with most real estate holdings exempt). The tax rate is 7%, which will be applied to capital gains profits exceeding $250,000. It is slated to fund several early learning and child care programs.

When the tax passed in 2021, Washington became the 42nd state to enact this tax estimated to impact 0.2% of Washingtonians. The tax was challenged in court on the basis that it is considered “income,” which, per a 1933 State Supreme Court ruling, would violate the state constitution’s provisions against state income taxes. In its 7-2 ruling, the state Supreme Court found capital gains to be an excise tax related to the sale of the assets and not on the assets themselves. In other words, it is not an income tax and therefore is constitutional.

Check out the Washington Department of Revenue and this Crosscut article for more information about the capital gains tax and the Court’s ruling.

Budget Proposals Released

The budget process continues to move forward with budget writers and staff devoting many sleepless nights to running cost models, drafting amendments and doing their best to ensure all the numbers add up.

This week, the House of Representatives released its proposed 2023-25 Operating, Capital and Transportation budgets. The Washington State Financial Information website contains updated links to budget bills and summaries.

The budgets are massive and complex. I like to equate them to an onion as they have many layers and can make you cry. Start Early Washington updated our budget comparison document on our resource page to reflect the status as of March 30, including the House proposals. Note, this is an evolving process, and we will do our best to keep the resource document updated.

As of this writing, the Senate passed its operating budget on a 40-9 vote and its capital budget on a 44-0 vote with 5 Senators excused. In the very early morning hours on March 30, the House Appropriations Committee voted out its proposed budget after considering scores of amendments. Next, the full House of Representatives will consider the House budget. Then, budget writers will work to resolve differences in approaches prior to April 23 Sine Die (adjournment).

Legislative Updates

House Committee holds Early Achievers work session. The House Human Services, Youth, and Early Learning Committee held a work session on Early Achievers (EA) March 28, which can be seen on TVW at the 35 minute mark. Early Achievers is the state’s early learning quality system for ECEAP and child care programs and is funded by state and federal dollars. Committee materials provide a solid overview of the program and its impacts.

Nicole Rose, Assistant Secretary Early Learning at the Department of Children, Youth and Families (DCYF) presented on behalf of DCYF and provided an overview of related state and federal policies, funding mechanisms and the functions of the system, including the Quality Rating and Improvement System (QRIS) and professional development. Assistant Secretary Rose also provided an overview of the child care and ECEAP workforce and education requirements.

Early learning bills continue to make progress. A number of early learning bills continued to move through the legislative process after the March 29 policy committee cutoff, when all bills had to be passed out of policy committees in the opposite chamber. Fiscal committee cutoff is rapidly approaching on April 4. Both the Senate Ways and Means and House Appropriations Committees are scheduled for marathon public hearings and executive sessions (votes) to meet this deadline. This is a very fluid time in the process, with bills coming on and off committee schedules and rumors tend to fly! It is important to remember that no concept is truly “dead” until Sine Die.

After the fiscal committee cutoff, legislators will go back to voting bills off the floor, reconciling differences between House and Senate versions of bills and sending them to the Governor for consideration.

Bill updates as of March 30:

House Bill 1199, which prohibits “common interest communities” such as a homeowners association from banning or limiting a licensed child care center or family home, is waiting to be pulled from the Senate Rules Committee to the Senate floor. If the bill passes with no amendments on the Senate floor, it will head straight to Governor Inslee for signature.

House Bill 1525, which provides qualifying applicants and consumers of state registered apprenticeship programs eligibility for child care subsidies, had a public hearing and awaits a vote in the Senate Ways & Means Committee.

Senate Bill 5225, which increases access to child care by providing subsidy eligibility to families involved in therapeutic court, bans immigration status discrimination for child care subsidies and authorizes child care subsidy eligibility for dependents of child care employees, has a hearing in the House Appropriations Committee Saturday, April 1.

Senate Bill 5252, which updates state regulations regarding background checks to meet federal regulations, passed the House Human Services, Youth, and Early Learning Committee and is headed to the House Rules Committee, where it awaits placement on the floor calendar.

Senate Bill 5316, which eliminates the requirement for applicants of child care and foster care entities to pay state and federal background check fees and licensing fees, awaits a hearing date and a vote in the House Appropriations Committee.

Senate Bill 5580, which authorizes a post-delivery and transitional care program and updates the Maternity Support Services (MSS) program, was voted out of the House Health Care & Wellness Committee with an amendment that adjusts the timelines for increasing the income eligibility thresholds for pregnant and postpartum Apple Health coverage to both go into effect Nov. 1, 2023. SB 5580 will need a hearing and a vote in the House Appropriations Committee by April 4.

Finally, a new striking amendment (or striker) for Second Substitute House Bill 1550 (2SHB 1550), which converts the Transitional Kindergarten (TK) program to a Transition to Kindergarten (TTK) program, was passed out of the Senate Early Learning and K12 Committee on March 27 and can be seen on TVW starting at the 3:30 minute mark.

A striker replaces all previous content with a new bill on the same subject matter. The 2SHB 1550 striker had modifications presented during the March 27 executive session that were different from the version that received a hearing on March 22. The new striker that passed committee would:

• Change the name “Transitional Kindergarten” to “Transition to Kindergarten” (TTK), place the program in statute (law), and clarify that TTK is not a K12 basic education program.
• Require the Office of Superintendent of Public Instruction (OSPI) to administer and adopt rules as well as a state site visit process for TTK. Initial rules would need to be adopted in time for the 2023-24 school year and permanent rules would need to be adopted by the beginning of the 2024-25 school year.
• Create TTK eligibility for children determined to benefit from an additional year of preparation before entry into kindergarten, and children must be at least 4-years-old by Aug. 31 in the year of entry into the program. The striker would ban discrimination against students with disabilities, bar tuition and provide school districts with the option to prioritize children from lowest-income families and those needing additional preparation prior to kindergarten entry.
• Require enrolled TTK students to receive a student identifier number for data tracking and require districts to administer WaKIDS twice a year unless parents ask for an exemption.
• Require participating school districts to conduct a local child care and early learning needs assessment before starting or expanding TTK. This assessment would need to consider existing availability and affordability of other early learning programs in the service area.
• Require OSPI and DCYF to develop statewide coordinated eligibility, recruitment, enrollment and selection best practices and adds a requirement that school districts and public schools adhere to OSPI guidelines related to TTK. The bill also directs DCYF to make administrative changes to better align ECEAP implementation with state-funded early learning programs serving 3 through 5-year-old children offered by school districts and requires a report by July 1, 2024.
• Provide a funding formula for the program based on the reported full-time equivalent of eligible children in the program and calculated under certain portions of the prototypical school funding model. The striker also directs the Caseload Forecast Council to forecast eligible children participating in TTK at regular intervals for state budgetary purposes.
• Clarify that school districts and OSPI cannot develop a state-funded program specifically for children that do meet standard K12 entry requirements without legislative approval.

HB 1550 is scheduled for a public hearing in the Senate Ways & Means Committee March 31.

Bill Tracker: Key Early Learning Bills

As the legislative session progresses, our resource page will update with a weekly bill tracker. Please note that legislation changes quickly, so the version on our website may not represent a bill’s latest version as it is published the Thursday of each week.

Trees anxiously awaiting the arrival of the Cherry Blossoms
(Photo Credit: Erica Hallock)

Trivia!

A shoutout to Julie Pederson, Executive Director of The Foundation for Healthy Generations, for this week’s trivia content.

Which former legislator from Spokane was known for leading sing-alongs on the House Floor to add levity to late night sessions?

Revenue Forecast

On Monday, the State Economic and Revenue Forecast Council met to receive an updated revenue forecast from the State’s Economist Dr. Steven Lerch. Dr. Lerch reported that the proposed revenue for the next two biennia is $1.024 billion below what was forecasted in November. This breaks down as $483 million lower than projected for 2023-25 and $541 million lower for 2025-27.

Total state revenues for the 2023-25 biennium are projected at $65.7 billion. In comparison, total state revenues for the 2021-23 biennium were $64.1 billion. Put another way, the state’s revenues are only expected to grow by 2.4% between the 2021-23 and 2023-25 biennia. In contrast, state revenue grew by 20.7% from the 2019-21 biennium to the 2021-23 biennium (largely aided by federal COVID-19 relief funds).

The forecast estimates the Capital Gains tax will generate $942 million in 2023–25 and $1.069 billion in 2025–27.

During press availability following the revenue forecast, Senate Ways and Means Chair Christine Rolfes acknowledged that fewer resources will be available than were expected when the Governor’s budget came out in December. She went on to say that this forecast was not unexpected, and while it makes budget writers cautious, it does not require a change in their game plan.

Major reasons for the slowing forecast include lower Real Estate Excise Tax collections than forecasted, slightly lower personal income growth and higher interest rates.

Senate Budget Detail and Next Steps

Earlier this week, the Senate released its proposed 2023-25 Capital Budget. After a public hearing on the proposed Capital Budget on Monday, the Senate Ways and Means Committee approved the proposal on Wednesday evening. It is expected to receive a vote by the full Senate on March 24.

On Thursday, the Senate released its proposed 2023-25 Operating Budget. The Senate Ways and Means Committee will hold a public hearing on the proposed operating budget beginning at 2 p.m. on March 24. The operating budget will be voted on by the Ways and Means Committee on March 27 and by the full Senate likely later that week.

On March 27, the House is expected to release both its proposed operating and capital budgets with public hearings shortly thereafter, followed by votes by the full House. All current and proposed budget proposals can be found on the Washington State Fiscal Information webpage.

Start Early Washington has prepared a chart summarizing and comparing how the various budgets addressed early learning related issues. Be sure to bookmark our resource page to access the chart and the House version following its release on Monday.

The next step in the budget process following votes by the bodies on their respective proposals is conference committees. Legislators from each body will be appointed to work through areas of differences and arrive at a single budget proposal that will go before both bodies prior to Sine Die (adjournment) on April 23.

With One Month Left, Early Learning Bills Keep Moving

Several bills related to early learning continue to move through the legislative process ahead of the March 29 policy committee cutoff, when all bills must be passed out of the policy committees of the opposite chamber.

• House Bill 1199, which prohibits “common interest communities” such as a homeowners association from banning or limiting a licensed child care center or family home, passed the Senate Law and Justice Committee and is likely headed to the Senate Rules Committee next.
• House Bill 1525, which provides qualifying applicants and consumers of state registered apprenticeship programs eligibility for Working Connections Child Care subsidy, was amended to move up implementation to 90 days after session ends, awaits a vote in the Senate Ways & Means Committee.
• Senate Bill 5225, which increases access to child care by providing subsidy eligibility to families involved in therapeutic court, bans limiting eligibility based on immigration status and authorizes child care subsidy eligibility for dependents of child care employees, awaits a hearing in the House Appropriations Committee.
• Senate Bill 5252, which updates state regulations regarding background checks to meet federal regulations, and Senate Bill 5316, which eliminates the requirement for applicants of child care and foster care entities to pay state and federal background check fees and licensing fees, are both scheduled for a vote in the House Human Services, Youth, and Early Learning Committee on March 24.
• Senate Bill 5580, which authorizes a post-delivery and transitional care program and updates the Maternity Support Services (MSS) program, has a vote scheduled on March 24 in the House Health Care & Wellness Committee. The fiscal note is almost $8M, which could make the final passage challenging given the tight budget conditions.

A striking amendment (or striker) for House Bill 1550, which would convert the Transitional Kindergarten (TK) program to a Transition to Kindergarten (TTK) program, was heard this week in the Senate Early Learning and K12 Committee starting at 29 minutes. As you may recall from the Feb. 19 “Notes From Olympia,” a “striker” amends everything previously included in the bill, replacing it with new content on the same subject matter. The HB 1550 striker heard on Wednesday would:

• Change the name “Transitional Kindergarten” to Transition to Kindergarten (TTK) and place the program in statute (law).
• Specify a funding formula for TTK using certain portions of the existing prototypical school funding model. Districts would consider TTK students as kindergarteners for funding purposes but would be required to report the TTK students separately.
• Focus eligibility for children determined to benefit from an additional year of preparation before entry into kindergarten and require children entering the program to be at least 4 years old by Aug. 31 in the year of entry into TTK.
• Ban school districts from charging tuition or excluding children with disabilities
• Provide enrolled TTK students with a student identifier number for data tracking, and districts would be required to administer WAKids unless parents ask for an exemption.
• Require the Office of Superintendent of Public Instruction (OSPI) to administer and adopt rules for TTK.
• Require OSPI to design a process for the Department of Children, Youth, and Families (DCYF) to conduct site visits to provide feedback on early learning best practices and curriculum, as well as professional development opportunities. The striker language clarifies that these site visits do not provide DCYF with licensing or other regulatory or program authority.
• Require participating school districts to conduct a local child care and early learning needs assessment before starting or expanding TTK. This assessment must consider the existing availability and affordability of other early learning programs in the service area.

The striking amendment differed greatly from the bill that passed out of the House. The committee heard opposition to the striking amendment, mainly from early learning providers, who cited the lack of TTK program requirements, quality standards and the need for collaboration with school districts to keep existing early learning programs in operation. Supporters of the striking amendment, mainly school districts, spoke to the access of care children receive through TK and the positive student outcomes TK fosters in many areas.

The bill is scheduled for a vote in the Senate Early Learning and K-12 Committee on March 27.

Bill Tracker: Key Early Learning Bills

As the legislative session progresses, our resource page will update with a weekly bill tracker. Please note that legislation changes quickly, so the version on our website may not represent a bill’s latest version as it is published the Thursday of each week.

A rainy start to week ten
(Photo Credit: Erica Hallock)

Trivia!

The Irv Newhouse Building on the Capitol Campus could be demolished as early as today to make way for a new Senate office building. What was the Newhouse building’s original name?

Legislative Lowdown

State revenue forecasts. Programs, services and institutions supported by the state government are funded by revenue from state taxes and fees as well as a few other sources, such as the federal government. As you may recall from a previous story, the Legislature must adopt four-year balanced budgets based on anticipated revenue.

Since 1984, the state has generated nonpartisan economic and revenue forecasts, which are overseen and approved by the Economic and Revenue Forecast Council (Council). The approved forecasts serve as the basis for state budgeting. The Council currently includes four bipartisan legislators, the leaders of the state Department of Revenue and the Office of Financial Management, as well as the State Treasurer Mike Pellicciotti. In addition, the agency has five staff including its Executive Director Dr. Steven Lerch, Ph.D. — the state’s Chief Economist.

Forecasts are developed four times a year, with the November revenue forecast serving as the basis of the Governor’s Proposed Budget, released annually each December. The revenue forecast released in February (even-numbered years) or March (odd-numbered years) provides the latest revenue estimates for legislative budget writers.

The economic forecasts consider a variety of factors that could impact the state’s economic condition, including overall economic growth (GDP), employment data, inflationary data, consumer spending habits, interstate and international trade, strength of the dollar, major global events impacting trade (ex., War in Ukraine), among other key factors. See the March 2023 Economic Review as an example of the complexities of these analyses. The revenue forecast will include an official projection of revenues as well as optimistic and pessimistic forecasts.

Here is the methodology and detailed information on calculated costs, revenues and caseload forecasts related to the Governor’s Proposed Budget for the 2023-25 legislative biennium, as an example. Revenue and cost drivers include revenues and fees coming into the state coffers, caseload assumptions for major programs (ex., state-funded health care, prisons, etc.), increased costs of doing business, costs of tentative union collective bargaining agreements (CBAs), cost-of-living adjustments for the state pension and retirement programs, debt service and new gubernatorial policy and related funding priorities for the upcoming session.

The March 2023 revenue forecast will be released at 2 p.m. on March 20 and can be viewed on TVW. We expect both the Senate and House will release their respective Operating, Capital and Transportation budgets shortly after the revenue forecast.

Following the release of the budgets, the Senate and House fiscal committees will hold public hearings for groups and individuals to provide feedback about what is (and, more importantly, is not) included. As of this writing, the Senate Ways and Means Committee has a 4 p.m. public hearing on March 20 for the proposed Capital Budget as well as a 2 p.m. public hearing on March 24 for their proposed Operating Budget. House budgets are expected the week of March 27.

After the release of the respective budget proposals, the Senate and House will each appoint a “conference committee.” These conference committee members will work to resolve differences between the two bodies’ approaches prior to the release of finalized 2023-25 budgets that will be considered by both chambers prior to adjournment of the 2023 legislative session.

Bill Tracker: Key Early Learning Bills

As the legislative session progresses, our resource page will update with a weekly bill tracker. Please note that legislation changes quickly, so the version on our website may not represent a bill’s latest version as it is published the Thursday of each week.