Governor's Budget

December 18, 2008

Download a printable version here (PDF - 112kb)

As expected, Governor Gregoire’s 2009-20011budget calls for painful cuts to, among other things, education, health services and natural resources. In all, the budget calls for $3.2 billion in cuts primarily in human services and health care.

Highlights

• The Governor’s budget relies on using $609 million from the rainy day fund

• The budget assumes something over a billion in federal money; $779 in FMAP, something more than $300 million in TANF money, and some SCHIP money for kids health care.

 

• The Office of Financial Management places the revenue shortfall at $5.75 billion- up from the $5.1 billion figure announced in November.

• No cost of living raises for anyone.  No vendor increases.  Revision of pension funding calculations; the unfunded liability payment is not skipped but the entire rate system is revised. 

 

• It assumes previous cuts announced by the Governor including reductions in travel, hiring, and a 1% across the board for most agencies.

• K-12, cut 728 by 24%. 

 

• Reduced levy equalization by 33%.

• Refocused the two professional development days to math & science; the math & science days were eliminated.

 

• Suspended I-732 funds for salary increases.

• Most grants were cut or eliminated.

 

Early learning

• Did not reduce the expansion of all-day kindergarten but did not continue the expansion.  No cuts to ECEAP. Suspended the career & wage ladder.

 

Higher Ed

• Tuition authorization of 7/7/5%.

• 13% reductions for 4 years and 6% for Com & Tech colleges.  There is flexibility in how to implement the proposed cuts.

 

Public Safety

• Community supervision would be revised; no supervision of misdemeanants or “low risk” felony offenders. 

• Nacelle Youth camp would be closed because of continuing reductions in the Juvenile Rehabilitation caseload.

 

• Chemical dependency treatment funding for adult outpatient & residential services would be reduced.

• Early release for elderly and ill offenders who are nonviolent or not sex offenders would be authorized.

 

In Human Services

• Adult Day Health would be eliminated because the federal government has discontinued coverage under Medicaid.

• Nursing home reimbursement rates would be reduced by a net 5%.

 

• Mental health funding to Regional Support Networks would be reduced; Medicaid rate is reduced by 3.2 % and non-Medicaid rate is reduced by 7.4%.

• Grants and medical coverage to most people in the General Assistance-Unemployable program and the Alcoholism and Drug Addiction Treatment and Support Act program would be eliminated.  Partially offset by $20 million to emergency housing and $40 million to community clinics.   27,500 individuals would no longer be served under these two programs.

 

• Shorten sanction time in TANF to 3 months.

Health care

• The basic health plan would be reduced by 42%. The program will be somewhat restructured so it may not be the same percentage cut to the number covered.

• Rates to managed care providers would be reduced by 1%.

 

• The universal vaccine program would be eliminated; coverage will come from Medicaid; private insurance, or individuals.

Natural resources

• Some fish hatcheries would be closed.

• 13 state parks would be closed.

 

• Funding for geologic hazard studies would be eliminated.

Other

• Suspend state grants to public broadcasters.  Reduced pass-through funding for 211.

 

New revenues:

• More auditors in Department of Revenue

 

 

Budget Highlights

Education

• Student Achievement Fund would be reduced by 25 percent or $178 million. Under I-728, school districts are authorized to use funds to reduce class size; provide extended learning opportunities; provide additional professional development for educators; provide early assistance for children who need pre-kindergarten support; and provide building improvements relating to class-size reductions.

• Levy equalization payments to public schools would be reduced by 33 percent to save $125 million.

 

• 13 percent cut for 4-year colleges. ($216 million) 2-year colleges would be cut by 6 percent ($110 million)

Health

• Funding for basic health plan would be reduced by 42 percent. The Health Care Authority will streamline administrative procedures and adjust benefit design and cost sharing to allow for the enrollment of as many people as possible with the reduced funds.

• The General Assistance Medical program would be eliminated. The Alien Emergency Medical program would be reduced to align with federal standards for emergency services.

 

• New parent support services would be reduced by five percent, and would be targeted to families at the highest risk.

• Income eligibility for children's health care would be lowered to at or below 250 percent of the federal poverty level.

 

• The General Assistance mental health pilot, the Foster Care health care pilot, and the Medicare part C premium coverage pilot would be eliminated.

• Several state-supported programs which were added during the 2008 legislative session would either be reduced or eliminated, including: cord blood collection, lead poison screening, colorectal cancer screening, rare blood and marrow collection, senior falls prevention program, and hearing intervention follow-up. State support for family planning activities would be reduced by $1 million.

 

• State support for the children's vaccination program would be eliminated. Starting July 1, 2010, the state will transition from a Universal Vaccine Program to the Vaccines for Children Program. Approximately 600,000 children will still be eligible for federally subsidized vaccinations. Several other programs would also reduced, including technical assistance to local health jurisdictions for drug lab clean-up, maintaining the health declaration registry, administrative support for the women and infants nutrition program, and state subsidies for the Poison Control Center. Pesticide incident investigations would be retained at the Department of Health but the Pesticide Incident

• The appropriation for the Health Insurance Partnership would be eliminated for the 2009-11 Biennium.

 

Human Services

• General Assistance-Unemployable program would be eliminated. GAU is a state-funded program that provides cash and medical benefits for persons who are physically and/or mentally incapacitated and unemployable for 90 days from the date of application. This would impact nearly 21,000 people, as well as 6,500 people in a program for drug addiction and alcoholism.

Children’s Administration

• Guardianship placements would be limited, resulting in savings as the federal government shares placement costs by increasing federal participation.

• Secure Crisis Residential Centers (SCRC) would be eliminated. Other adolescent placement options, such as Hope beds, semi-secure CRCs and responsible living skills would be retained.

 

• Crisis family intervention services and contracts with chemical dependency professionals would be reduced. Continuum of care services and parent education support would be eliminated.

• Funding for trauma mitigation, intensive resource foster homes, and sex abuse recognition training would be eliminated. The Foster Care to Age 21 pilot would be eliminated, yet funding would be retained to allow youth currently in the program to continue until they age out.

 

Mental Health

• Regional Support Networks receive state-only funding to provide mental health services to clients ineligible for Medicaid. Funding for these services, which exceed $130 million annually, would be reduced by 7.4 percent.

• Community mental health services are provided through Regional Support Network (RSN) managed care systems. RSNs receive over $300 million annually in Medicaid funding to provide community mental health services. Medicaid rates would be reduced by 3.2 percent.

 

Developmental Disabilities

• The homecare worker training enhancements enacted in the 2007 legislative session for increased advanced training (SHB 2289) were scheduled to start on January 1, 2010. The enhancements would be suspended this biennium.

Long term care

• I-1029 Home Care Worker Training

Initiative 1029, passed by the voters in November, increased required basic training, levels of background checks, and certification of home care workers. The increased training and certification portions would be delayed two years, but the increased level of background checks will be implemented on January 1, 2010.

• The federal Senior Companion and Foster Grandparent programs would no longer receive supplemental state funding. Long term care staff would be reduced to reflect an anticipated decrease in workload from elimination of the Adult Day Health Program.

 

Transportation

• Sidney-San Juans ferry route would be eliminated by the end of September 2009.

($9.2 million Puget Sound Ferry Operations Account)

• Reduction of ferry service on the Pt. Defiance-Tahlequah runs by switching from a 48-auto passenger vessel to a 34-auto passenger vessel. ($1.3 million Puget Sound Ferry Operations Account)

 

Natural Resources ($36 million)

• The State Parks and Recreation Commission would select 13 state parks and one environmental learning center for closure that do not meet its long-range plan for high quality parks with statewide significance. (Save $5.2 million)

• Five hatcheries would be closed. They include: Colville, Omak, Arlington, Mossyrock, and McKernan hatcheries. These closures would have a net reduction in trout and non-endangered salmon production.

 

• Of the 137 active commissioned enforcement officers, approximately seven positions would be eliminated during the 2009-11 Biennium.

• The subsidy of state general funds to help support hunter and other educational programs would be reduced by 40 percent.