The Great Recession dramatically changed fiscal conditions in Washington, possibly forever. The impact of falling revenues and structural budget deficits elicited a near universal call for a transformative shift in state government. The Thrive Washington research series - developed by the Washington Roundtable and Washington Research Council - provides actionable policy recommendations that, if enacted, will preserve essential services, lay a foundation for economic growth and create an environment in which Washingtonians can thrive.
The roadmap for progress: In November 2010, recognizing that the great recession intensified the need for transformative change in state government, our two organizations embarked on a year-long partnership to research and promote a series of actionable and substantive policy recommendations that, if enacted, will preserve essential  services, lay a foundation for sustainable economic growth and create an environment in which Washingtonians can thrive.  The news is good in that state lawmakers made significant progress.  They enacted important fiscal reforms, reducing the state’s pension burden, reducing the working debt limit, reigning in workers’ compensation and unemployment insurance costs, pushing the state to seek a federal Medicaid waiver, and developing plans to consolidate public school employee health benefits purchasing.  Much more remains to be done. The economy continues to flounder, revenues are coming in below projections and no one should discount the challenge of cutting billions of dollars out of a budget mid-way through the biennium. While recovery remains elusive, lawmakers must continue to address this crisis with a focus on long-term growth and job creation.	Recommendations: Read more: Setting Priorities, Marking Progress (Nov.2011) Fiscal policy Read more: Nine Steps to Budget Sustainability in Washington State (Nov. 2010) Focus on sustainable spending. Maintain reserve equal to 5% of general expenditures. Establish defined contribution pension plan for new hires. Reinstate firm expenditure limit. Better manage debt service.   Business costs Read more:  The Case for Workers' Compensation & Unemployment Insurance Reform (April 2011) Refrain from expanding UI benefits. Adopt mainstream voluntary settlement option. Establish precise definition for occupational disease. Permit private insurers to offer workers’ compensation policies.   Competitive Sourcing Read more: The Case for Contracting Out (Dec. 2010) Ensure contracting out authority isn’t subject to collective bargaining. ID opportunities to reduce costs through competitive contracting. Create commission. Health Care Read more: Containing Health Care Spending While Improving Outcomes (Jan. 2011) Continue to seek Medicaid waivers to gain maximum flexibility. Collective bargaining: negotiate a benefits agreements approaching private sector parity. Maintain commitment to strategies to reduce annual state health care cost growth to 4 percent. Government restructuring Read more:  Restructuring the Washington State Executive Branch (Feb. 2011) Pursue consolidation of education and natural resource agencies respectively.. Regulatory reform Read more:  Confronting Washington State's Overlapping Regulatory Structures (April 2011) Adopt EPA standards, exceeding them only when higher standards are unequivically justifed by increased financial benefits. Create a permanent task force to monitor legislative and gubernatorial rule-making. Exempt minor projects from the SEPA process.   Economic Development Read more: Moving Washington State Forward Into Recovery (May 2011) Expand STEM education & enhance accountability. Use new four-tier evaluation system to guide K-12 personnel decisions. Make performance primary criterion in teacher layoffs. Preserve access to higher education. Retain tax incentives the promote investment & job creation. Preserve tolling to support transportation investments.
The full research series: Charting a New Course (Nov. 2010) Nine Steps to Budget Sustainability in Washington State (Nov. 2010) The Case for Contracting Out (Dec. 2010) Containing Health Care Spending While Improving Outcomes (Jan. 2011) Consolidation vs. Specialization: Restructuring the Washington State Executive Branch (Feb. 2011) The Case for Workers' Compensation & Unemployment Insurance Reform (April 2011) Confronting Washington State's Overlapping Regulatory Structures (April 2011) Economic Development: Moving Washington State Forward Into Recovery (May 2011) Setting Priorities, Marking Progress (Nov. 2011)