Interview with Longtime Spokesman Review Olympia Bureau Chief Jim Camden

Jim Camden interviews former Governor Christine Gregoire (Photo Courtesy: Spokesman Review)

Enjoy highlights of my conversation with the Spokesman Review’s longtime Olympia Bureau Chief, Jim Camden…

Why Journalism and Why Spokane?
While attending the “Mizzou” School of Journalism (University of Missouri), Jim dreamed of becoming the next Ernest Hemingway, but realized the odds of hitting it big as a novelist were less than becoming a starving writer, so he opted for journalism.

Jim’s first professional journalist stop was in Lincoln, Nebraska where he worked for five years.  There, Jim served as a night copy editor, night police reporter and eventually covered the Nebraska Legislature – which is unique in that it is the only unicameral Legislature in the country (meaning it has only one legislative body).

Early in his career, Jim applied for an open position with the Spokesman Review in its Olympia Bureau.  Jim was asked what he knew about Washington state politics and when he responded with information about our state’s then U.S. Senators, he was told it was not possible to report on a state house without knowing the players and its landscape.  Fair enough.

Thankfully, the Spokesman Review saw promise in Jim and ultimately hired him in 1981, offering him a nighttime general assignment position.  As Jim talked about his professional trajectory, he described jobs and roles (like night policy reporter) that do not exist anymore as print journalism has both struggled financially and has become more automated.

Memories from Covering Spokane

Story #1 – The “South Hill Rapist”
When Jim and his wife moved to Spokane in 1981 to take on his new role with the paper, a serial rapist had the Spokane community terrified.  A detail Jim omitted when hyping up the new community to his wife!

The perpetrator, Kevin Coe, was arrested and it turned out that Coe’s father, Gordon, was the managing editor of the Spokesman Review’s main competitor, the Spokane Chronicle (but both papers shared the same owner).  Kevin Coe’s crimes centered on the city’s South Hill, hence the moniker the “South Hill Rapist.”

The story got more complicated when Gordon’s wife Ruth (Kevin’s mother) was arrested for trying to hire a hit man to kill the prosecutor as well as the judge in Kevin’s case.  Jim said to me – something to the effect of – “there are no hit men in Spokane.  If you think you are hiring a hit man, you are talking to a cop!”

One of Jim’s assignments included interviewing Gordon Coe after his wife’s arrest.  Jim also attended the trials and sentencing for Kevin. Kevin served his full 25-year sentence at the Walla Walla State Penitentiary, and, in 2008, a jury found him to be a violent sexual predator, committing him to McNeil Island indefinitely.

If you are looking for an account of these events, I recommend Jack Olsen’s “Son: A Psychopath and His Victims.”  An excellent book.  Every time I drive by the location of Ruth Coe’s arrest (now a Ross Dress for Less store), I think about this bizarre story.

Story #2 – Candidate Filing Week Pre-Internet
On a much lighter note, Jim shared memories of candidate filing week from 1984.  Of course, back in those days, there was no electronic filing – not even by fax machine!  The first person in line got the first spot on the ballot, so candidates would camp out to secure the top spot on the ballot.  Jim was there early, too, to capture the story.

I wonder what it looked like to see all of the elected and prospective elected officials waiting in line early in the morning.  It must have been a sight!

Story #3 – President George H.W. Bush in Spokane, a Sapling and a Personal Check!
In 1989, Spokane’s Congressman, the Honorable Tom Foley, was Speaker of the House of Representatives and George H.W. Bush was serving as the President of the United States of America.  As part of the 25th anniversary of the 1974 World’s Fair which was held in Spokane, President Bush visited Spokane in 1989.  In honor of the World’s Fair environmental theme, President George H.W. Bush and Speaker Foley made joint remarks at the City’s Riverfront Park and together planted a sapling that came from an American elm planted by President John Quincy Adams at the White House.  (Note: the poor sapling did not last long as its branches were destroyed and then; to preserve the tree, it was moved to an arboretum where it died after being planted too shallowly).

Anyway, like any good journalist, Jim was not satisfied with simply covering the public event at Riverfront Park.  He knew President Bush was staying at the then-Sheraton Hotel next to the Park and he suspected the President would have dinner plans, probably with Speaker Foley since they enjoyed a cordial relationship.  Jim kept a watchful eye on the presidential limousines from his own vehicle and when the limousines headed out, he did as well, keeping a safe distance so as not to not garner attention.

Sure enough, President Bush, his Environmental Protection Agency Secretary, Speaker Foley, and his wife Heather Foley were dining at the Patsy Clark Mansion which used to be a restaurant and now is a law office doubling as a wedding venue.  Jim knew the owner of the restaurant asked and asked what the group ordered to eat (of course the party had the restaurant to themselves).  Jim ended up talking to a server named Rose, who was serving the table that night.  Rose shared she did not know until she showed up for work that day that she would be serving the President of the United States and that she was “wanded” by the Secret Service every time she walked back into the dining room.  She also reported the President, upon the Speaker’s recommendation, ordered a Washington state Chardonnay paired with a steak.

This part of the story makes me smile.  Jim learned that President Bush wrote a personal check for his meal.  Tony Anderson, the owner of Patsy Clark, shared that he of course would never cash the check, a detail Jim included in his article about the dinner. Upon reading this from his room at the Sheraton the next morning, President Bush wrote personal notes to both Tony and Rose and sent cash thanking them for the memorable evening.

President George H.W. Bush prepares to plant a sapling from the White House at Spokane’s Riverfront Park in 1989 (Photo Courtesy: Spokesman Review)

Covering Olympia
While his initial attempt to become the Olympia Bureau Chief for the Spokesman didn’t work out, Jim achieved that dream in 2009.  During our time together, Jim shared memories of his time covering state politics in Olympia and his thoughts for the future of his profession.

One change he noted over his time in Olympia was the sharp decrease in the number of journalists covering the Olympia beat.  Back in the day when there were two houses for journalists (the “Blue House” and the “White House” which were recently demolished as part of the Capitol campus restructure), journalists were assigned to a house to separate competitors.  For example, reporters from competing Seattle papers would be assigned to different houses.

Jim noted that during gubernatorial press conferences under previous administrations, it would be standing room only, with journalists yelling out to get their questions answered.  Today, there are empty chairs around the table and the environment is much more polite…  a little too polite in Jim’s view.   (Side note: as I was wrapping up this piece, a Brian Dudley piece in the Seattle Times noted reporters assigned to cover Olympia news had declined 70% since 2005).

I asked Jim to share about the various Governors he covered over his tenure and he – of course – had stories…

He found the first Governor he observed in this role, Booth Gardner, to be the most open and easiest to cover.  During the 1984 general election, incumbent Governor John Spellman portrayed Gardner as a “tool of the labor unions.”  Jim shared this tact was a surprise given Gardner’s status as heir to the Weyerhaeuser timber fortune and the expectation that Gardner would be pegged as an out-of-touch rich kid.  According to Jim, a frequent sighting at that year’s Spokane Labor Rally were big buttons that read “Hi!   I’m a big labor boss!” (mocking Spellman’s attempted jab).

Once elected, Gardner visited Spokane a lot because he liked to get out of the Capitol.  Jim talked about joining the Governor and a Democratic state legislative candidate door belling one day when they happened upon the home of a Spokesman Review colleague, who was surprised to find both Governor Gardner and his colleague Jim randomly at his door.

Jim shared he admired that former Governor Gary Locke made the wise decision to marry a journalist (Mona Lee Locke) and moved his family out of the Governor’s Residence when it was overrun by bats!

Finally, Jim shared a story about former Governor Christine Gregoire and how she calmed down an entire room of children at a dinosaur exhibit who panicked after a series of unplanned and unexpected balloon explosions rattled their nerves.  Governor Gregoire told the press something to the effect of “never underestimate a mom.”

I could go on and on with the remarkable stories and insights shared by Jim, but I do want to leave you with his answer to my question about the most impactful floor debate he witnessed, because he had obviously witnessed thousands of floor debates and votes from the mundane to the monumental.  In terms of the most impactful floor debate during his tenure, Jim cited the House of Representatives’ February 8, 2012, two-hour debate on SB 6329 which brought marriage equality to Washington state.  Jim found the debate “hearty” and thoughtful.

On January 4, 2021, Jim left the Spokesman Review as a full-time employee, but still writes for them on a part-time basis.  He currently writes a Sunday column where he is known for frequently including quizzes on political/historical matters that can stump the best of us.   He is also brought in to cover significant political stories where his expertise is key.

On September 9th, Jim was featured on the Spokesman’s front page in two places – his moderation of a discussion with the author of a new book about former Speaker of the House Tom Foley as well as his of coverage of I-2109, the effort to repeal the Capital Gains Tax.  Feels pretty full-time to me!

A huge thanks to Jim and to all of the amazing journalists who cover our state houses!

We celebrate the Department for making these key advancements towards increasing the supply and quality of infant and toddler child care, however, more work remains to be done.

We recommend that the state invest in grants and contracts to stabilize and expand the supply of infant and toddler child care across the state, a strategy also supported by the latest federal rule. Strategic investment in contracts and grants has been found to support stable enrollment for infants and toddlers as well as the hiring and retention of qualified staff.  Only six other states use this strategy to stabilize the supply of subsidized care, however, states that utilize contracts report that the reimbursement rates are closer to the cost of providing care, and therefore allows providers to invest in quality improvements. Grants and contracts will not only stabilize the supply of infant and toddler care, but can also help providers access the resources they need to increase the quality of their child care programs.

To make Illinois the best state to raise a family we must ensure that all families have access to quality and affordable child care.  

Interested in learning more about the Infant and Toddler Child Care Roadmap? Watch Raising Illinois’ statewide gathering, Child Care: Correcting Perception by Acknowledging Impact.

Washington State’s Smallest Ferry: the M/V Sanpoil, aka the Keller Ferry
Photo courtesy of WSDOT

Happy New (Fiscal) Year!  The state’s fiscal year begins each July 1st. Hopefully you celebrated accordingly. 😊

Washington State Fun Fact

To honor the spirit of summer, here’s a fun fact about our state! Brownie points to any readers who take advantage of this knowledge and send us a pic sometime this summer; we’ll even feature it in a future edition of Notes (if desired)!

In terms of fleet number and ridership, Washington State Ferries is the largest public ferry operator in the country and provides transportation to many of the state’s beautiful islands.

Updated Caseload Forecast Released

On June 13, the Washington State Caseload Forecast Council released updated forecasts for various entitlement programs ranging from K-12 education to prisons to Medicaid. These forecasts inform budget appropriations by previewing expected demands for specific programs. (Summary document and Narrative document for specific details).

In the early learning space, three key programs are forecasted and showed the following projected changes from the most recent February forecast:

ECEAP: The Caseload Forecast Council reports that ECEAP caseload has increased since the low point of the 2020-21 school year during the pandemic.

As in earlier forecasts, most of the ECEAP enrollment growth has come from children who do not meet eligibility under the current criteria. As of March 2024, of the increased enrollment, 343 children met current ECEAP eligibility criteria (3% below March 2023 levels) while 1,065 children did not meet entitlement eligibility criteria (49.9% above March 2023 levels).

As directed in the Fair Start for Kids Act, ECEAP is scheduled to become an entitlement as of July 1, 2026, and income eligibility for the program is scheduled to increase from 110% of the Federal Poverty Level to 36% State Median Income (which is roughly 140% of the Federal Poverty Level). The forecast reflects the projected impacts of these increases.

Actual ECEAP caseloads as compared to the forecast could vary as the forecast assumes substantial caseload growth once the program becomes an entitlement and limited data exists about uptake rates. There could also be variance from the forecast as children included in the forecast for ECEAP participation could opt for participation in other early learning program options.

Transition to Kindergarten: The Caseload Forecast Council narrative notes that during the 2023-24 school year, 144 school districts offered Transitional Kindergarten/Transition to Kindergarten (TK/TTK) in 288 schools. Based on information provided by districts, that number is expected to grow to 161 districts offering TTK in 371 schools in the 2024-25 school year.

While initial growth in TTK was largely centered in rural and smaller school districts, the program is expanding to larger ones, including the Renton and Tacoma school districts in the upcoming school year.

Because this is an emerging program, actual enrollment in TTK could vary from the forecast as districts could opt in or opt out of operating the program.

Working Connections Child Care: In its June forecast, the Forecast Council aimed to account for recently enacted legislation that expanded eligibility for Working Connections Child Care and also for the increased income eligibility (up to 75% of the State Median Income) slated to go into effect on July 1, 2025 per the Fair Start for Kids Act.The risk of variance to this forecast is moderate to high, particularly if participation in the program varies widely from the forecast assumptions once the program’s income eligibility is expanded.

The Caseload Forecast Council is next scheduled to meet on November 13th. This forecast will inform Governor Inslee’s final budget that will be released in December.

Washington Research Council Caseload Forecast Summary Highlights Fair Start for Kids Act: The Washington Research Council, a nonprofit organization that provides economic research and policy analysis, found implementation of aspects of the Fair Start for Kids Act during the 2025-27 biennium as its biggest take-away from the June Forecast Council report and highlighted the implications in its caseload forecast analysis.

In a blog post, the Research Council describes the portions of the Fair Start for Kids Act of 2021 that are slated to go into effect during the upcoming 2025-27 biennium that are reflected in the caseload forecast (e.g. increased income eligibility for Working Connections Child Care and ECEAP entitlement). It is an accurate synopsis and provides an outside look at how other sectors are assessing early learning’s impact on the overall state budget.

Revenue Forecast

On June 26, the Washington State Economic and Revenue Forecast Council met to receive an updated Revenue Forecast from state Economist Dave Reich.

The bottom line is the state’s projected available revenues subject to the four-year budget outlook for the 2023-27 biennia are down by $666 million (or down by 0.5%) from the February forecast. This represents a decrease of $477 million in the current 2023-25 biennium and a decrease of $189 million for the upcoming 2025-27 biennium.

The Education Legacy Trust Account (which is funded in part by capital gains revenue and represents one source of funding for early learning) saw a reduction in projected revenues from the February forecast, largely due to lower projected capital gains receipts. Specifically, the forecast presumes a reduction of $188 million for the 2023-25 biennium and a reduction of $119 million for the 2025-27 biennium.

When asked about the lower capital gains receipts, Economist Reich responded with his opinion that this lower number likely more accurately reflects taxpayer behavior and, going forward, he expects capital gains receipts to be forecasted at $430 million a year. Note: this would mean that, per statute, the Common Schools Construction Account would not receive any capital gains funding as it would only receive funding if capital gain revenues exceed $500 million a year.

When questioned by reporters, Office of Financial Management Director David Schumacher and Democratic budget writers emphasized that the Legislature left healthy reserves and ending fund balances. They also noted this revenue forecast reflects a point in time and additional information will be available as the year goes on – including the outcome of the November initiatives impacting the continued availability of Capital Gains and Climate Commitment Act funding.

The Economic and Revenue Forecast Council will receive two more Revenue Forecasts in 2024 – one on September 27th and a second on November 20th, with the November forecast informing Governor Inslee’s final budget.

State Agency Budget Instructions and OFM Leadership Transition

On June 3rd, the Office of Financial Management (OFM) Director David Schumacher released instructions to guide state agencies in preparation of operating, capital and transportation budget requests (or “Decision Packages”) which are due to OFM by September 10th.

Notably, the instructions open by recognizing more people will need state services in the upcoming biennium, leading to increased costs for providing them. At the same time, available revenues will most likely only “… support the maintenance of current programs, but not growth.”

The instructions direct state agencies to focus on continuation of current programs and anticipated caseload growth. They go on to say that “agencies should also consider potentially pausing the phase-in of new programs, and the creation of new programs should be limited to only the highest priorities.” Of course, the outcome of the November ballot initiatives could impact the availability of revenue and agencies should consider the potential of reduced revenues resulting from the passage of initiatives in their budget requests.

As noted in the instruction letter, agency budget requests are due to OFM by September 10th and will be public shortly thereafter. The Governor and OFM will use this information (along with updated caseload and revenue forecast numbers) to build Governor Inslee’s final budgets that will be released in mid-late December. It will be interesting to see how state agencies interpret these instructions.

OFM Leadership Transition: It should also be noted that Schumacher, who has served as OFM Director for 12 years, recently announced he will be leaving his role this fall to serve as the Public Affairs Director for the Washington State Investment Board. As we get closer to the conclusion of Governor Inslee’s tenure, we can expect to see the departure of other senior members of his team.

Reminder: August Primary Election is Coming!

Don’t forget to vote! The upcoming Primary Election is on Tuesday, August 6 and ballots must be received by 8pm to be counted. Register to vote on the Secretary of State’s website.

Build and sustain the full spectrum of ECE workforce 

Increase the City’s Corporate Fund investment in the Chicago Early Learning Workforce Scholarship (CELWS) by $15M to help address the early childhood workforce crisis and close the ever-growing funding gap between demand and availability of the scholarship.  

The City of Chicago is experiencing an early childhood workforce crisis that predates—but was also greatly exacerbated by—the pandemic. A direct way to create accessible pathways for new educators is to increase funding for CELWS through the allocation to the Department of Family and Support Services (DFSS) budget that comes from the City’s Corporate Fund. The scholarship supports approximately 600 students each year—around 200 new awardees plus those continuing – which historically represents just over half of the number of applications received.  

Acknowledge the critical work of early childhood professionals by dedicating City funding to increase support and compensation for the workforce through premium pay or short-term investments.   

As the City works to structurally and sustainably address the gap in pay parity between educators in school-based early childhood settings and community-based settings in the long-term, funds from the city budget should be used to increase compensation for these essential workers in the short-term. The City should consider premium pay or short-term investments in compensation for early childhood workers—including those working in center-based and family child care homes, Early Interventionists, home visitors and doulas—that other cities have adopted. 

Dedicate Corporate Fund investment to Family Connects Chicago (FCC) to sustain investment in its critical operations currently funded through expiring American Rescue Plan Act funds.   

FCC is a universal newborn support model that combats disparities in maternal and infant health outcomes by offering a nurse home visit to every birthing family in Chicago. Administered by the Chicago Department of Public Health (CDPH), this program serves as one of the earliest components of the prenatal-to-five system.  

Continue investment in the modernization of Chicago’s early childhood data infrastructure  

Invest City funds in the Chicago Early Childhood Integrated Data System (CECIDS) to ensure this public good is providing real-time, accurate data that is essential to advancing a clear understanding of the City’s ECE landscape and equity in accessibility.  

Chicago’s 180,000 young children, ages birth through 5 are served through a variety of early childhood programs and funding streams, each with its own data system, set of eligibility guidelines and compliance requirements. CECIDS was developed out of an imperative to mitigate this fragmentation that exacerbates inequities and limits program improvement. CECIDS bridges the gaps between disparate early childhood programs and funding streams, offering an integrated platform that provides all stakeholders insight on Chicago’s progress towards its goals for equitable access to high quality early childhood education and care and fair compensation for the early childhood workforce and continuing the City’s $529,000 investment in its sustainability is paramount.  

Contact your Alderman now to ask them to support an increase in investments for early care and education in the 2025 Chicago budget.

Your Turn: Why Increasing Early Intervention Funding is Crucial in Illinois

Jen Crick, President of the Illinois Developmental Therapy Association

As a parent of children who greatly benefited from various therapies throughout their childhoods, I fully understand the importance of a system like Early Intervention (EI) that supports families of young children with delays or disabilities as they navigate through the first three years of their child’s life.  

As a developmental therapist and president of the Illinois Developmental Therapy Association (IDTA), I have seen firsthand the positive outcomes for families and children who receive critical EI services, and I know that it takes dedicated professionals with the expertise and adequate resources to ensure that infants and toddlers with delays or disabilities have the best chance for healthy development.  

My colleagues and I have supported thousands of infants and toddlers through the EI program, and it is amazing how quickly we see progress and how life trajectories change in the months that we are with them. EI helps families to support their infants and toddlers and helps to prevent, mitigate, or eliminate delays making children more prepared for success in school and life.  

National data on child outcomes for children who receive EI show that almost 50% of infants and toddlers who receive EI function at age expectancy when they exit EI in social functioning, knowledge and skills and taking action to meet their needs.

EI is a program provided for under federal (and state) law – Part C of the Individuals with Disabilities Education Act (IDEA) that gives infants and toddlers with or at substantial risk for disabilities and delays and their families the right to receive a range of developmental and therapeutic services.  

Despite this mandate, thousands of children in Illinois are on waiting lists for EI services, causing them to fall further behind during a critical period of development when a child’s brain is rapidly changing. Nearly 3,000 families are currently on waiting lists for the EI services they are legally entitled to receive.  

The percentage of families waiting more than 30 days for their services to begin has more than doubled over the last two years, and data from the Illinois Department of Human Services (IDHS) does not account for the thousands more families waiting for an initial evaluation. The delays in the EI system are at levels previously unseen in the recent history of the program.  

Service delays are tied directly to the program’s ongoing workforce crisis. Despite a long-overdue rate increase in FY24, decades of neglect have left providers without adequate compensation. In fact, the state would need to raise provider reimbursement rates by at least 25% just to account for inflation. Most EI providers, who work as fee-for-service independent contractors and not full-time state staff, must cover their own health insurance and travel costs and are not compensated for missed or canceled appointments.  

These challenges, among others, are leading providers – many of whom have advanced degrees – to leave EI and work instead in hospitals, schools, private practices, or other settings. As providers, we believe in EI and are wholly dedicated to developing relationships with families and supporting them in being their child’s best and foremost advocate.  

So, it’s heartbreaking to be led to choose to leave an industry that needs us so desperately. In fact, many providers can no longer make a living wage in EI and can only continue if they have a significant other with income and benefits. This has resulted in a shrinking workforce, directly affecting families’ access to these critical supports.  

The Illinois General Assembly has an opportunity this year to address the EI program’s stubbornly high service delays and an impending workforce crisis.  

We are urging the legislature to increase funding for the EI program by $40 million in the FY25 budget to provide a 10% rate increase for providers and service coordinators and to respond to increasing demand for the services and other systems improvements. This investment will continue to provide the necessary increases that must be sustained over the next few years until the system is stabilized.  

According to the Illinois Department of Human Services’ Smart Start: Early Intervention plan, an increase in the budget would stabilize our EI program by assisting us in bringing  EI providers back to the field, balancing caseloads, lowering service delays, and demonstrating the administration’s appreciation and support to this vital field.  

We appreciate all the work the Department is doing to do multi-state research, build cost models and launch innovative pilots to address disparities in access to services and improve the EI system, and yet, without any commitment of funding, none of this work can be implemented.  

We encourage all Illinoisans to contact your legislators and demand a $40 million increase to the state’s Early Intervention budget for FY2025.  

We cannot allow infants and toddlers with disabilities and delays and their families to be denied these services that they have a right to receive and that make such a huge difference in their development and long-term health and educational outcomes. The earliest years matter—our babies can’t wait.

Jen Crick is the president of the Illinois Developmental Therapy Association and a Developmental Therapist serving the Northwest Suburbs in Lake and McHenry counties. She has served on several EI committees and workgroups in Illinois including the PN-3 Coalition (now Raising Illinois), a workforce workgroup, and the Early Childhood Quality Alliance Panel.

Check out the above op-ed published in the State-Journal Register on May 17, 2024

Learn more about how you can take action for Early Intervention.

Understanding how these additional funds in the above categories are being allocated by the state to support families with young children is especially important as we head into the City of Chicago’s budget season, work to identify gaps and re-emphasize recommendations for the city’s investment of local funds to best serve the city’s early learning system. 

Read Start Early’s analysis of the state budget to learn about other important legislative measures impacting the state’s early care and education system. 

The burden placed on families to complete an application – collecting and submitting required documents, attending in person interviews and following up on application errors or requests for further documentation, can cause families to lose their slot in a child care program, or to simply stop the process because it is too cumbersome. Likewise, child care providers face uncertainty around receiving payments or are unable to fill slots while awaiting eligibility decisions.

Making the application process less taxing for families can also reduce the administrative burden for Lead Agency staff and improve program integrity. Because OCC monitors the Lead Agency based on how the State Plan describes the eligibility determination, streamlining these processes will make the implementation less complicated for eligibility case workers and others responsible for the administration of the program. The less difficult to implement, the less likelihood there is for error, thus less risk of being out of compliance when the state is audited by the OCC.

Conclusion

Ensuring access to high quality child care is an imperative for parents and children, providers, communities and the economy. One of the simplest ways to do this is to make the eligibility policies simpler and the application for child care subsidies easier for families. There is an opportunity now to address this through updated CCDF State Plans.

Happy Sunny Interim from the Capitol Building! (Photo Credit: Erica Hallock)

Notes to the Reader: Start Early Washington publishes “Notes from Olympia” intermittently during the legislative interim.

Thanks to those who responded to our survey about this publication. You all provided excellent feedback and suggestions on ways to improve the product. Several folks mentioned incorporating video content, an intriguing idea that may push us out of our comfort zone, but we are game to give it a whirl!

And in case you were waiting with bated breath… 60.6% of the Notes readers who responded favor the Razor Clam for the official Washington State clam. Sorry geoduck fans!

What We Are Watching…

The State’s Revenue Picture

In the past few weeks, several economic indicators have been released that, collectively, signal potential concerns around the state’s fiscal outlook. These include:

1. Reduced Capital Gains Revenues – In late May, the Department of Revenue reported a drop in Capital Gains collections for Tax Years 2022 and 2023. (Check out the Washington State Standard article more in-depth coverage).As of May 17, 2024, $433 million in Capital Gains taxes have been collected for Tax Year 2023, significantly less than the $673 million projected in the February revenue forecast. Capital Gains payments are due by April 15th annually, but filers can request an extension. This collection amount could increase with late payments.Further, the Department of Revenue reported that with additional late payments and refunds, actual collections for Tax Year 2022 for Capital Gains were $786 million, not the assumed $896 million.We can expect these updated figures to be factored into the June revenue forecast (discussed below).As a reminder, the first $500 million collected in Capital Gains annually is deposited into the Education Legacy Trust Account. The Education Legacy Trust Account is used to support early learning, common schools (aka K-12 education) and higher education. Any amount collected above $500 million annually is deposited into the Common Schools Construction Account. This means the drop in Tax Year 2022 revenue impacts the amount of funding available for the Commons Schools Construction Account and, if the payments for Tax Year 2023 remain under $500 million, this will impact deposits into the Education Legacy Trust Account and budget writers will have to make necessary adjustments. More to come on this as we learn more.
2. Drop in Estimated Reserves in Four-Year Budget Outlook – Washington state law requires the Legislature to adopt a four-year balanced budget that leaves a positive ending fund balance in the general fund and other related funds.On April 25, the Washington state Economic and Revenue Forecast Council adopted its official budget outlook to reflect investments included in the 2024 Supplemental Budget. While the adopted Supplemental Budget balances over four-years, the ending balance for funds subject to the Outlook at the end of the 2025-27 biennium is now $100M. This is $410M lower than the ending balance of $510M included in the estimated Outlook presented to lawmakers alongside the compromise budget in March (aka the conference report).A major reason for this downward adjustment is due to a change in assumptions about “reversions.” Reversions are appropriations that do not end up being spent and “revert” to the state and can then be reappropriated. For reversions, the adopted Outlook assumes 0.8% of appropriations for State Fiscal Year (SFY) 2024, lowering to 0.5% in SFYs 2025-27. In layman’s terms, this means less funding is assumed to “come back” to the state to be invested for other purposes. Specifically, the Outlook assumes $284M of reversions in SFY 2024, $199M in SFY 2025, $189M in SFY 2026 and $194M in SFY 2027.
3. Revenue Collections Come in Lower than Forecasted for April 11-May 10 – The state’s Economic and Revenue Council’s May Economic and Revenue Update showed revenue collections for April 11 – May 10 came in $114M (4.6%) lower than forecasted. This report comes after April’s update which showed a $82.9M surplus.Cumulatively, revenue collections are down $60.6M from the forecast (1%).
4. Revenue and Caseload Forecasts Out in June – Updated Caseload and Revenue forecasts will be released in June (June 13 and 26, respectively). These forecasts will provide important data points that will inform the state’s budget plans for the 2025-27 and 2027-29 biennia (remember that four-year balanced budget requirement).The caseload forecast will provide a snapshot of expected enrollment in entitlement programs that drive state investments such as K-12, Medicaid and prisons. For early childhood, Working Connections, ECEAP, ESIT and Transition to Kindergarten are all included in the caseload forecast. In short, the caseload forecast provides insight into expected state investments.The revenue forecast will provide an update on anticipated state revenue. These forecasts consider state, national and international factors that impact the economy from construction activity in the Puget Sound to the war in Ukraine. As noted above, we can expect adjustments related to Capital Gains payments.

What’s Coming Up in the 2025-27 Biennium for Early Learning?

State agencies are busy preparing budget requests (or “Decision Packages”) to the Governor’s Office of Financial Management (OFM) to inform Governor Inslee’s final budget that will be released in late December.
Importantly, OFM will be releasing instructions to state agencies sometime in June to guide their budget preparation process. The state’s revenue picture and upcoming change in gubernatorial administration could influence these budget instructions. For example, OFM could direct state agencies to limit budget requests to what expansions or policy changes are included in statute. As a reminder, Governors must release balanced budgets.

These budget requests are due to the Office of Financial Management around mid-September annually.

The Fair Start for Kids Act of 2021 dictated in statute a number of expansions to both Working Connections Child Care and ECEAP during the 2025-27 biennium. As a reminder, these expansions and policy changes include:

1. Expanded eligibility for Working Connections Child Care up to 75% of the State Median Income (SMI) as of July 1, 2025. The latest data shows this income equates to $6,386 a month for a family of three.
2. Establishment of a $215 a month co-payment for Working Connections Child Care for families between 60% – 75% SMI as of July 1, 2025. This aligns with the expanded eligibility.
3. By the 2026-27 school year, any eligible child shall be entitled to enroll in ECEAP.
4. DCYF to submit an implementation plan to expand access to the state’s mixed delivery child care system by June 30, 2025. The plan must assume that any financial contribution by families is capped at no more than seven percent of household income and that the child care workforce is provided living wages and benefits. This is also known as the Early Childhood Education (ECE) Access and Living Wage Implementation Plan.

Because these policies are all included in statute, DCYF is preparing to submit Decision Packages to outline expected costs. DCYF will also be considering other funding requests, but we can expect the agency to prioritize these statutorily required items.

It is important to remember that policies embedded in statute signal a legislative commitment to fund a policy. Should the Legislature opt not to fund – or fund a policy at a different amount – than what is included in statute, they must take a direct action to change their previous decision. Conversely, items listed in statute as “subject to appropriation,” can simply not be funded without any further action by the Legislature.

Candidate Filing Week, By the Numbers

The 2024 primary and general elections are shaping up to be some of the most competitive and interesting in recent memory. With open seats from Governor through counties and cities, hundreds of Washingtonians opted to run for public office during the May 6-10 “Candidate Filing Week.” Check out the Secretary of State’s website for an official listing of the offices and candidates.

We thought we would use numbers to convey some themes and stories that jumped out to us from filing week. (Note this is not intended to be all-inclusive).

3: Three people named Bob Fergusons initially filed to run for Governor. Ultimately, two of the “Bob Fergusons” withdrew, leaving the state’s current Attorney General as the only “Bob Ferguson” in the race.

This situation helped us learn about a 1943 law that makes it a felony to run for office against someone with the same name with the goal of confusing the voters. Check out the Washington State Standard’s coverage of the issue.

4: Four incumbent Senators are running unopposed.

19: The number of House members who are running unopposed.

8: The number of current House members who are running for open Senate seats.

6: Candidates filed to run for the open Senate seat in the 4th Legislative District (LD). A total of 5 Republicans (including current House member Rep. Leonard Christian) and one Democrat. The most crowded Senate race.

6 is also the magic number for the open House position 2 seat in the 4th LD. In this race, four Republicans and two Democrats are running. After two candidates withdrew from the House position 1 seat in the 5th LD, this race in the 4th became the most crowded House race.

1: One candidate is running for the open 3rd LD Senate seat currently occupied by departing Senate Majority Leader Andy Billig. Current Representative Marcus Riccelli is running unopposed for this seat after the individual who filed to run against Riccelli withdrew their candidacy.

1: One former House member is running for the House in a different legislative district than he originally served (former Representative Mark Hargrove from the 47th LD filed to run for the House 5th LD Position 1).

16: Sixteen current legislators drew opponents from their same party.
2 of these current legislators are running for the Senate (one Republican and one Democrat).

The remaining 14 legislators are all running for re-election in the House. Of these, 9 are Democrats and 5 are Republicans.

As a reminder, Washington state operates a “top-two” primary system, where the two candidates receiving the most votes advance to the general election. Learn more at the Secretary of State’s webpage.

Washington’s primary election is on August 6, 2024.

Check out Washington’s online voter registration portal!

Our Policy and Advocacy Shop is Hiring!

Our Policy and Advocacy Team is looking to turn our duo into a trio! We’re in search of someone to assist our efforts of bolstering early learning in our great state. If you know anyone who is passionate about Washington State, its families and providers, and is interested in learning about the legislative process, please refer them to our Policy and Advocacy Associate position. In addition, Start Early Washington is hiring a Senior Communications and Development Associate to drive external awareness and engagement with potential supporters and people working in early childhood and related fields. We look forward to reviewing applications!

Capitol Campus Construction Update

The Joel M. Pritchard Library – the latest building on the Capital Campus under construction (Photo Credit: Erica Hallock)

A late May visit to the Capitol not only allowed for viewing of gorgeous flowers blooming throughout the campus, but also an update on the significant construction underway. Since Sine Die, there has been significant progress made on the Newhouse Building (which we will cover in a future Notes) and construction has also started on the Joel M. Pritchard library upgrade.

The parking lot used by legislators and staff is now dedicated to construction vehicles and – while hard to tell by the pictures – the large windows framing the building’s entrance are being removed. Deconstruction of the current building is scheduled to be completed by October 2024 with construction of the new building starting in June 2025, with substantial completion expected by June 2026.

What does this mean for the 2025 legislative session?

With the Pritchard building closed, there will be very limited space for the public to gather and eat between meetings, particularly on rainy days. Expect more crowding in the Legislative Building, especially on big advocacy days.

Per the Department of Enterprise Services’ website, the renderings for the new Pritchard building look to be quite the upgrade:

Department of Enterprise Services