2006 Chair's Report

Washingtonians are regaining their optimism. After being hard hit by the 2001-03 recession, our state economy is now outperforming the national average. Job creation has been on the rise as nearly all sectors, with the exception of manufacturing, are returning to pre-recession employment levels. And, due in large part to a booming construction and real estate sector, the state has seen repeated increases in revenue projections throughout the last year.

Heartened by these positive signs, and not having to deal with the deficits that plagued Washington in recent years, state policymakers were able to make laudable progress this year on education and transportation policy, two issues that citizens perennially place high on their priority lists.

Our elected leaders upheld the state’s commitment to a quality education for every student, maintaining the Washington Assessment of Student Learning (WASL) as a high school graduation requirement, directing resources to help students achieve academic standards, and providing alternative options for students who struggle with the WASL.

Lawmakers made progress on transportation policy, enacting legislation that provides regional leaders in the Central Puget Sound with an opportunity to put a comprehensive roads-and-transit ballot measure before voters in 2007.

Policymakers also made some headway on the state budget. They set aside more than $900 million of the $1.6 billion surplus to deal with future expenses, and funded high priority items such as academic assistance for struggling students and life sciences research and high-demand enrollments at state universities. However, the state budget is far from sustainable. Despite economic growth, our state faces a projected deficit of $700 million in the next biennium.

Washingtonians have reason to be optimistic. However, we do not have cause to be over-confident or complacent. To be successful in the global economy, we must continually refocus and make improvements based on what it will take for Washington to be competitive with other states and nations. This will require accountability and prioritization in state government, more sustainable budgeting, improved education for all students, and strategic investments in infrastructure and research.

These goals are demanding, but achievable. As we approach and benefit from each, Washington will become a stronger competitor on the national and global stage, thus making our state a better place to live, work and raise a family.

Sincerely,Steven R. Rogel, chair

EDUCATION: moving toward a 21^st century education for all

Lawmakers recommitted to ensuring a quality education for all students by maintaining the Washington Assessment of Student Learning as a requirement for high school graduation and by providing funding to help struggling students. In addition, students who struggle with the format of the WASL will have alternative options for demonstrating achievement and meeting the high school graduation requirement.

It was encouraging to see increased discussion this session about what it takes to move students beyond the minimum skills measured on the WASL and prepare them for work and college. To that end, the Roundtable will continue to pursue legislation requiring a more rigorous default curriculum, particularly in math and science, for all students. We will also continue to advocate for creating learning opportunities at the state’s community colleges for students who finish high school having met all other graduation requirements, but have not yet demonstrated achievement of the 10^th grade standards.

The Roundtable also applauds state leaders for investing this session in high demand enrollments at our higher education institutions. Additional funding for life sciences research and efforts to reduce math remediation at our community colleges are also steps toward building our economic foundation and better preparing young people for success.

TRANSPORTATION: planning for the future and protecting progress

Having made critical investments in statewide transportation in 2003 and 2005, state leaders this year took up the issue of regional transportation in the Central Puget Sound. They enacted legislation that enables regional leaders to put a comprehensive roads-and-transit investment package before voters in 2007. This package will be necessary to move forward with high priority projects such as the Alaskan Way Viaduct and SR 520 bridge replacements.

With development of the regional package underway, protecting current transportation money and ensuring it is used wisely is of utmost concern. Last fall, voters defeated Initiative 912, which attempted to eliminate billions in transportation funding. This fall they may be asked to do it again if Initiative 917 qualifies for the statewide ballot. That measure would eliminate $2.7 billion in transportation dollars and jeopardize hundreds of projects. Washington cannot afford to undo the progress already made, which is why the Roundtable opposes Initiative 917.

FISCAL POLICY: sustainability problems persist despite state revenue growth

Lawmakers saved more than $900 million of this year’s budget surplus for future use. However, even with those savings and a strong economy, the state will face a projected deficit of $700 million during the next biennium. That is a result of unfunded liabilities and unsustainable spending growth, particularly in high growth areas like health care.

Health care costs comprise 28 percent of state operating expenditures. Since 2000, the state has shifted six percent of operating expenditures from other priorities like education to cover growth in health care spending. At this rate, health care is well on its way to consuming the largest share of the state budget.

Washington will continue to experience budget shortfalls and erosion of other priority services unless it takes action to reduce growth in fast-growing areas, and bring sustainability to the state budget. The Priorities of Government budget process will be a valuable tool in that effort.

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