Inslee sworn in, puts jobs at top of list

In Gov. Jay Inslee's inaugural address before a joint session of the House and Senate today, job growth was at the top of the list.

The new governor shared his vision for a Washington of tomorrow, which he said would focus on a clean energy economy, research and development, innovation, Lean Management in state agencies, and much more.

Regarding education, Inslee said a balanced budget and funding for education runs directly through health care reform, emphasizing that prevention will lead us from a "sick care" approach to one that makes huge savings to the state.

Inslee also said that during the campaign he was inspired by the pockets of innovation at schools across the state. He recognized the hard work of school teachers, and referenced the tragedy at Sandy Hook Elementary School.

Turning to the system, Inslee said education must be aligned from early learning to K-12 to our universities.

He also said that while the state is required to make more investments in education, it can't afford to allocate funding that masks existing problems. More than just funding, "We need systemic, sustainable reform of our schools," said Inslee.

Inslee's speech will be available for viewing on TVW; text of the speech is expected to be available on the governor's web site once it is up and posted.

Inslee was sworn in at 10:40 a.m. by Chief Justice Barbara Madsen in the Rotunda of the capitol building. The bigger stage allowed more people to participate and watch in person than the crowded chamber galleries would, said Inslee.

As his oath concluded, the crowd erupted in applause and shouts similar to what you'd hear at a sports event when your team scores. As he left for the joint session, Inslee said, "Let's go build a working Washington!"

Prior to the inaugural address, statewide elected officers were sworn in by members of the Supreme Court.

In November, voters elected a new attorney general, new state auditor, and new secretary of state.

Gregoire addresses joint session

Governor Christine O. Gregoire gave her final State of the State address to a joint session of the 63rd Legislature today.

In her look back at accomplishments, Gregoire said that even in tough times they made the best decisions for students and schools. Specifically, she pointed to:

• the creation of an early learning department;
• investments in STEM courses and schools;
• a model evaluation system;
• innovative schools across the state;
• a launch year for high school seniors; and
• college-bound scholarships for students to attend college.

She challenged legislators to fully fund a seamless education system, from early learning through post-secondary education.

In her address, Gregoire said the challenges of the last few years were unprecedented. But together they didn't let the opportunity pass them by - ticking off agency consolidations, closed institutions, a smaller state work force, no change to UI premiums, and other successes as examples of how state government managed the economic crisis.

She closed with two recommendations on the need for solid investments in good schools and transportation.

Now is the time, Gregoire challenged, for the state to invest in our children and our future. With a nod to the McCleary decision, Gregoire said the legislature has a moral and constitutional obligation to fund the state's public schools.

We cannot cut or save our way out of this obligation, said Gregoire, restating the need for a down payment of at least an additional $1 billion in this biennium and at least $3 billion in the future.

The full speech will be available on the governor's web site - www.governor.wa.gov.

Inslee leads McKenna, several races too close to call

Democratic candidate for Governor Jay Inslee leads Republican candidate Rob McKenna in the most recent vote counts. Expect this race to go back and forth, as McKenna was leading when initial returns were posted. Inslee's lead is about 53,000 votes as of 9 p.m.

With most counties reporting results, including King County; it appears that Snohomish, Thurston and Yakima counties are still waiting to post.

In the "too close to call" races, Representative Kathy Haigh, D-35th, is narrowly leading Republican challenger Dan Griffey, Republican. Haigh is the current chair of the House Education Appropriations & Oversight Committee and a former school director.

Rep. Mark Hargrove, R-47th, trails his challenger by a slight margin, and incumbent Rep. Katrina Asay, R-30th, is down by about 2,000 votes.

Of the Senate hotly contested races, Rep. Barbara Bailey, Republican, leads incumbent Democrat Mary Margaret Haugen by about 1,300 votes. Haugen chairs the Senate Transportation committee and is a former school director. Rep. Tim Probst, Democrat, leads incumbent Don Benton, R-17th, by a narrow margin of about 100 votes.

Two of the highly watched races - the 1st and the 5th - show Democrats leading at this early time. Sen. Rosemary McAuliffe, has a 57% vote to Republican Dawn McCravey. McAuliffe is a former Northshore school director, while McCravey serves on the Northshore board.

In the 5th, which has an open Senate seat, Democrat Mark Mullet leads Republican Brad Toft. In the 5th district open House seat, Issaquah school director Chad Magendanz is leading by a 54% margin.

It's a dead heat between Ridgefield school director Julie Olson, Republican, and teacher Monica Stonier, Democrat, for the seat that became open when Probst decided to challenge Benton.

Republican Rep. Bruce Dammeier is cruising to an easy win for the open Senate seat in the 25th legislative district. His is the first "flip" in seats from Democratic to Republican control. Dammeier is a former Puyallup school director.

Rep. Andy Billig, Democrat, is looking good to retain the 3rd legislative district vacated by Sen. Lisa Brown. His win would keep the seat in Democratic control. And in southwest Washington, Annette Cleveland looks poised to hold the Senate seat in the 49th for Democrats.

Former Rep. Dawn Morrell, Democrat, is leading her Republican challenger for Dammeier's former House seat.

In what might be an upset tonight, Republican challenger Brad Hawkins is leading incumbent House member Mike Armstrong. Armstrong is a former Wenatchee school director; Hawkins serves on the Eastmont school board. Hawkins leads by nearly 2,000 votes at this time.

Look for more results in another hour or so, with an emphasis on the open seat count.

Early Returns Posted Soon

Results are not posted yet, but are expected around 8:15 p.m. for early returns. "First Reading" will report results as they become available.

Keep in mind that in addition to the governor's race, half of the senate is up for re-election and all 98 of the House seats are on the ballot.

Going into the 2012 election, Senate Democrats hold a 27-22 majority and House Democrats have a 56-42 majority over Republicans.

In the Senate, seven seats are "open" - five of which were held previously by Democrats and two by Republicans.

In the House, depending on how you want to count them, a total of 18 seats are technically "open." This is partly because two seats fell victim to redistricting. Of those open seats, put 11 in the Democrat column and 7 in the Republican column to start tonight's races.

In between posts, check the Washington Secretary of State's web site for a quick glance at how the state, legislative and general election ballot issues are doing.

State Board debates school district waivers - again

The State Board of Education is once again discussing changes to administrative rules related to school district requests for waivers from the standard 180-day requirement in statute.

SBE staff recommended today that the SBE proceed with rule making, including capping the number of waiver days to 5, and making what are now called the Option 1 waivers reserved for only local or temporary characteristics or circumstances that warrant an exception to the 180-day requirement. In addition, staff recommended criteria, including the use of strategies that are evidence- or research-based and likely to lead to the attainment of the goal, as part of an evaluation prior to approval.

Staff are suggesting that a new waiver - called an innovation waiver - would be created to address potential requests for specific schools (not school districts) who might need more than five days of waivers. Staff also recommended that the Fast Track waiver process adopted two years ago be merged into the Option 1 waivers.

SBE members asked many questions, and it isn't clear what direction the SBE may take. Staff are pushing that they get approval to file what is called a CR 101, that signals their intent to adopt the rule changes. A decision on that will be made at tomorrow's SBE meeting in Yakima.

Sen. Lisa Brown won't seek re-election

Senate Democratic Majority Leader Lisa Brown announced today that she will not seek re-election this November.

The 20-year legislator represents the 3rd legislative district (Spokane). Brown was elected to the House in 1992, and to the Senate in 1996. She served as the Senate Ways & Means Chair before becoming the majority leader in 2004.

Rep. Andy Billig, a Democrat from the same district, is likely to announce for Brown's seat. The race has already drawn city council member Nancy McLaughlin, a Republican.

Brown joins five of her Senate colleagues (four Democrats and one Republican) who also have opted to leave the state Legislature. Half of the Senate is up for re-election, while all 98 seats in the House are up.

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 ...

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.