2007 Chair's Report

The year 2007 began with great promise in Washington state.  The economy was growing.  State revenues were outpacing projections, resulting in budget surpluses.  Opportunities abounded for state legislators and Governor Chris Gregoire to build a foundation for a more prosperous future for all Washingtonians.  What came out of the 2007 legislative session was at times encouraging, but, on the whole, disappointing.

Investments in high demand degrees and university research will foster innovation and enhance academic opportunities.  Legislation mandating the development of a five-star voluntary rating system for child care and early childhood centers will encourage more structured, nurturing learning opportunities for our state’s youngest citizens. Phasing in all-day kindergarten in low-income schools will provide enriching opportunities for some of our most challenged students.  

However, the decision in the final hours of the legislative session to approve ESSB 6023 was a huge setback. The new law delays high school graduation requirements in math and science and introduces a range of alternative options for students who do not meet standard on the 10^th grade WASL or achieve a qualifying score on one of the previously approved alternatives.  With this bill, state policymakers retreated from the 15-year promise of education reform and undermined the integrity of the state’s academic standards and accountability system. 

Lawmakers also missed an opportunity to inject much needed accountability into transportation governance.  The Central Puget Sound region is rife with transportation governing bodies, making it difficult to discern who is responsible for what.  The governor’s Regional Transportation Commission recommended a series of common-sense reforms that would have clarified responsibility for planning and financing.  However, defenders of the status quo successfully fended off those reforms.

Perhaps most concerning was lawmakers’ penchant for spending this year and the trend toward even higher business costs.  Lawmakers approved a $33.4 billion, two-year operating budget that increases spending by 15 percent over the previous biennium.  With revenues expected to grow at about half that rate, this level of spending growth is clearly unsustainable.  The saving grace was bipartisan support of a constitutional amendment requiring the state to deposit one percent of revenues in a hard-to-tap rainy day fund.  If approved by voters this fall, the fund will provide at least some modicum of protection in future downturns.

Lawmakers also approved a series of bills that will raise the cost of doing business in Washington state.  The ripple effect of introducing punitive damages against insurers will be felt in higher consumer and business premiums and higher costs for goods and services.  The paid family leave act is unfunded and may well lead to unbridled spending growth. 

In total, Washington got more expensive this year.  Lawmakers spread large sums of money across a variety of services and constituencies and pushed many of the costs into the future.  They accepted a setback in education policy.  They neglected to restructure transportation policy.

Fortunately, despite policy setbacks, 2007 continues to be a time of promise.  But the good times will not last forever, especially if we continue to take prosperity for granted.  We must invest in the services that will drive future prosperity and there must be accountability in all areas of government.  We must adapt for the future rather than being mired in the status quo.  That is how we will make Washington a better place to live and work.

Sincerely,

W. Stacey Cowles

Excessive spending in state budget is unsustainable

State lawmakers approved a $33.4 billion, two-year operating budget this year, which represents a 15 percent increase in spending over the 2005-07 biennium.  While current economic conditions may give some reason for optimism, economic growth will not support such marked spending increases over the long-term. 

More attention must be paid to Washington’s long-term fiscal outlook, ensuring the state budget ties spending to priorities, limits bow wave and provides some level of protection against future downturns.  In that vein, lawmakers should be credited with the decision to refer a Constitutional amendment to voters, which, if approved, will mandate that the legislature put one percent of revenues in a hard-to-tap rainy day fund.  This is a step toward ensuring Washington maintains at least minimum fiscal reserves.

Missed opportunity with transportation governance reform

The governor’s Regional Transportation Commission put forward a sensible proposal to restructure transportation governance, planning and financing in the Central Puget Sound, ensuring that one entity would be held accountable for regional improvements.  While the proposed changes would have given voters exactly what they’ve been seeking – accountability – the political will did not exist to enact reform.  Consequently, we are left with a murky system in which transportation planning and financing is done in silos, rather than through a comprehensive approach. 

Outside of the legislative arena, Sound Transit and the Regional Transportation Investment District have made progress toward an integrated plan for regional roads and transit investments in King, Pierce and Snohomish Counties.   A joint proposal will be on the regional ballot in November.  Regional funding is critical to continue progress toward improved mobility and safety as well as economic growth.

Weaker K-12 academic standards overshadow incremental policy improvements

Decisions by lawmakers to streamline curricula and require a third year of math as a state high school graduation requirement will likely improve student achievement.  However, this progress was overshadowed by the decision to delay the math and science graduation requirements until 2013.  This delay will allow hundreds of thousands of young people to graduate high school without demonstrating key skills needed for successful entry into college or work.  Further, lawmakers’ decision to allow students to meet new graduation requirements by passing one of nearly 20 assessments that are not aligned with state standards is equivalent to abandoning state academic standards altogether. This is unacceptable. 

Clearly more needs to be done to ensure today’s students get the skills demanded by the global economy.  That may mean changing how we compensate teachers, train and empower principals, and ensure students are making at least a minimum level of progress each year.  These are the types of changes that will open doors for our young people, rather than destining them for failure when they leave high school without the skills needed to succeed in an increasingly competitive world.  

Targeted investments in higher education and research will pay dividends for decades to come

Lawmakers codified the goal to produce an additional 10,000 bachelor’s degrees in high demand fields by 2020.  The legislature also provided support for academic research in areas of opportunity such as global health, agriculture and bioproducts.  These investments will reap benefits by enhancing academic opportunities at our universities, providing students with access to the skills needed to succeed in our state economy and driving innovations that will result in economic gains.

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