Wednesday, April 11, 2012

Senate takes up compromise health benefits bill

The striking amendment is fresh off the copier and now on the floor.

The bill does not go as far as school districts may have wanted, some of the alternatives were far worse. A summary will be provided in the next legislative update.

The amended bill passed 25-20 (with 1 absent and 3 excused). It now moves to the House floor for consideration.

Senate reconvenes, begins passing bills

It's 2:30 a.m. And the Senate has returned to the floor with a list of five bills to pass.

They took up the constitutional debt limit ESJR 8221 and are moving on to tax preferences.

Governor calls 2nd special session

As predicted, lawmakers failed to reach an agreement by midnight, April 10, pushing the Legislature into overtime - again.

A little after midnight, the Governor announced to the media that she would be calling another special session immediately.

While constitutionally the Governor can't limit the topics or the time to less than 30 days, Gov. Chris Gregoire pointedly said that she was giving lawmakers more time to pass the supplemental operating and capital budgets, along with a limited number of policy bills. The latter includes one that has eaten up most of the time today and is still in dispute - what to do with K-12 health benefits system.

The details aren't on paper yet, but the rumor basics are that school districts and their benefit providers will need to report certain data to the Health Care Authority and the Office of Insurance Commissioner; failure by school districts to report would default employees into the PEBB.

The big hold up is over what "trigger" to use on districts that fail to meet the four benchmarks:
1. Offer a high deductible with an Health Savings Account;
2. Offer a plan where premiums aren't more than the state PEBB plan;
3. Ensure that premiums for family coverage are not more than three times the employee-only coverage; and
4. Complete a competitive procurement.

Negotiations continue ...

Monday, April 9, 2012

Positive signs emerging in Legislature

In what may be the most positive sign of the night, House Capital Budget chair Hans Dunshee, D-Snohomish, and ranking Republican Judy Warnick of Moses Lake, just walked into the Senate chambers with non-partisan budget staff.

Legislators have been clear that there will be no deal on the capital budget until the operating budget is agreed to. In addition, lawmakers have said that there will be no operating budget agreement until there is agreement on the three reform bills that Republicans and their three coalition Democrats have said is needed to "go home." But before we read too much into it, they might just be trying to get a jump on the budget so they don't have to repeat the overnighter from last year.

Meanwhile, Sen. Rodney Tom, D-Bellevue, went home to be with family on Friday and hasn't returned. He is expected to be available tomorrow. And Senator Mike Hewitt, R-Walla Walla, dropped by the Capitol today less than a week from having major surgery to remove a tumor.

Of course, anything can happen. While Senate Majority Leader Lisa Brown, D-Spokane, said they had an agreement about an hour ago, less than 20 minutes later Senate Republicans said there was no agreement. Others in the know are either tight-lipped or nowhere to be found.

The Senate released a list of bills they planned to take up this evening, and around 9:30 p.m. moved to suspend the rule to allow the Senate to work past 10 p.m. Lawmakers who have been milling about all day are starting to get rummy, with a group of Senate Republicans just recently singing the march of guards from the Wizard of Oz as they returned to the Senate chambers.

Update: senators are leaving the building; returning tomorrow at 9 a.m.

The House adjourned earlier today without passing any bills. They will reconvene Tuesday at 9 a.m.

House adjourns for day, Senate floor session scheduled

Day 29 of the 30-day special session was full of hurry up and wait moments, marked by hours of negotiating in the Governor's office by key leadership and budget negotiators.

As an example, the House Ways and Means Committee scheduled an executive session for noon today. After playing a game of room switch, going back and forth between buildings, the committee reported a time change to 3 p.m. A while later, it was changed to 4 p.m., then TVW reported a 6 p.m. (unconfirmed) meeting. Finally the notice just read "postponed" indefinitely, and then about 8:20 p.m., the meeting was cancelled.

Negotiators joined the Governor at 12:30 p.m. today and met until about 3:30 p.m. They took a break, then resumed meetings, telling their respective caucus members to return by 5:45 p.m. that stretched beyond 7 p.m. They went back into the Governor's conference room at 8 p.m.

So ... What are they doing?

Three reform issues: changes to the early retirement option for new hires, a four-year balanced budget, and changes to the K-12 health benefits system (SSB 5940). Word on the street now if that they are briefing parties on the latest health benefits alternative. WSSDA weighed in earlier in the day, providing information to all four corners regarding district concerns
and suggestions.

In an effort to pacify WEA and to support better benefit options for classified employees, one can only hope that the needs and possible costs to school districts will remain a factor in the deliberations.

Saturday, April 7, 2012

Senate convenes for floor action

Health care for school employees is up for those who are interested.

Update: Senator Conway striker failed 16-27. Zarelli version that passed the Senate Ways and Means Committee last night will pass. Vote: 29-17-3.

WSSDA has offered several changes to the bill for consideration in the negotiations to follow with the House.

Friday, April 6, 2012

Senate budget committee in turmoil over K-12 health benefits

The Senate Ways and Means Committee heard a number of bills this afternoon, including the House supplemental budget (HB 2127). The latter was probably one of the least controversial bills up for public comment.

Of the most controversial bills is the K-12 health benefits bill, which has morphed several times over the afternoon and evening. Right now, the Senate budget committee is waiting for whatever amendments might come forward that the majority can vote for.

Tune in to TVW about 6:30 pm to see the start of the breakdown in the committee, with Senator Brown and Senator Zarelli, among others, facing off on what is holding the legislature in session longer than it needs to be.

The latest iteration of the bill, which remains unseen to those of us in the audience, would require school districts and their providers to report certain data to the Office of the Insurance Commissioner. Failure to report the data would default all school district employees into the PEBB. The second trigger would occur if 75 percent of school districts fail to meet three criteria by 2015, and would send any members of the largest classified bargaining unit to a classified school employees benefits system, starting 2017. Sound confusing? You bet.

For school directors who participated in the advisory group over the interim as the Health Care Authority drafted its report, we were hopeful but a bit anxious, that a consolidated health benefits system would result in better equity for all employees, more uniform but high quality health plans, and the opportunity for some savings ala the Oregon experience. It is hard to see how districts win or what the benefit is in this most recent "compromise" bill.

Stay tuned for next steps. And TVW junkies ... Tune in.

Senate skirmish latest challenge to civility

What started as a routine motion to go to ease at noon, subject to the call of the Senate President, turned into another altercation between Senate Democrats and Republicans when Sen. Mark Schoesler, R-Ritzville, moved that the Senate adjourn until Monday at 10 a.m.

Speaking strongly against the second motion, Senator Lisa Brown, D-Spokane, lambasted members for wanting to leave with so much work left unfinished.

This was countered by the argument that the Senate Ways and Means had scheduled a number of bills for public hearing today at 1 pm and that work would continue. But there is concern about working over the holiday.

Schoesler conceded the motion to go to ease, which actually took precedent over the over motion, but warned against a rumor to put the Senate under the "call of the Senate," which would put the body essentially in lock down until business was concluded. Several members rose on points of personal privilege to relay their plans for time with their families over this religious holiday.

The Senate went at ease, subject to the call.

Wednesday, April 4, 2012

House Democrats release new budget proposal

House Democrats unveiled a new supplemental budget this morning.

The proposed striking amendment makes no cuts to K-12 or higher education, and adds funding for several bills that have been enacted and signed into law by the Governor.

A copy of the proposal is available on the LEAP web site. Some of the main components are:
- $5.7 million for teacher/principal evaluation implementation;
- $2.0 million for a one-time urban school turnaround, for two schools in the Seattle district. The budget proviso includes other stipulations, including that schools must be the lowest-performing schools located in the same community with a significant education gap;
- $1.5 million for collaborative schools (HB 2799);
- $1.0 million for WAKIDS (HB 2586);
- $650,000 to the Office of the Insurance Commissioner for oversight of HB 2829, the House proposal for K-12 health benefits;
- $250,000 for implementation of HB 2337, the open source curriculum bill;
- $25,000 for the Professional Educator Standards Board to develop educator interpreter standards and assessments.

The budget proposal leaves about $300 million in reserves, with the balance in the rainy day fund. It relies on an accounting mechanism to leave about $238 million in the general fund before distribution to local governments and some transfers from dedicated accounts to the general fund to help close the projected $500 million budget shortfall.