HOUSE BILL REPORT

HB 2460

As Reported by House Committee On:

Appropriations

Title:  An act relating to fiscal matters.

Brief Description:  Making 2001‑03 supplemental operating appropriations.

Sponsors:  Representative Sommers; by request of Governor Locke.

Brief History:

Committee Activity:

Appropriations:  3/7/02, 3/8/02 [DPS].

Brief Summary of Substitute Bill

$Making supplemental operating appropriations.

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass. Signed by 13 members: Representatives Sommers, Chair; Doumit, 1st Vice Chair; Fromhold, 2nd Vice Chair; Cody, Dunshee, Grant, Kagi, Kenney, Kessler, Linville, McIntire, Ruderman and Tokuda.

Minority Report:  Do not pass. Signed by 12 members: Representatives Sehlin, Ranking Minority Member; Alexander, Boldt, Buck, Clements, Cox, Lisk, Mastin, Pearson, Pflug, Schual‑Berke and Talcott.

Staff:  Bill Robinson (786‑7140).

Background:

The State of Washington is on a biennial budget cycle, in which the Legislature authorizes appropriations covering two years of expenditures.  Appropriations for the 2001-03 biennium include the time period from July 1, 2001 through June 30, 2003.  The appropriations in the operating budget include the general day-to-day operational expenses of state agencies, colleges and universities, institutions, public schools, and other state services.  Employee salaries, goods and services, and welfare payments are typical operating expenses.

During the biennial budget cycle, the Legislature often makes adjustments or corrections to the biennial budget in a supplemental budget.  A supplemental budget can be adopted each time the Legislature is in session.

A biennial operating budget was enacted in the 2001 legislative session, appropriating $22.8 billion from the state general fund. During the six months follow the adoption of the biennial budget, the state's revenue projections have been significantly reduced and caseload levels for education and social service programs, primarily medical assistance, have increased.

Summary of Substitute Bill:

The 2002 Supplemental Operating budget reduces appropriations from the state general fund by $330 million. This reduction is a combination of $351 million of appropriation increases for additional caseload costs and $681 million reductions to other programs. Total appropriations are increased by $493 million, primarily due to increased federal payments for medical assistance programs.

Appropriation:  Please refer to the bill.

Fiscal Note:  Not Requested.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testified:  (Supports): Larry Ganders, Washington State University; Joel Youngerman, Studio Mechanics of the Pacific Northwest; Ranier Houser, Association of Washington School Principals; Bob Cooper, Food Lifeline; Earl Hale, State Board of Community and Technical Colleges; and Judy McNickle, Western Washington, Eastern Washington and Central Washington Universities, and The Evergreen State College.

(Concerns):  Dr.  Pat Hoban, Washington State School Retirees' Association; Pat McGreggor, Washington Association of Conservation Districts; Nick Federici, American Lung Association; Laurie St. Ours, Northwest Assisted Living Facilities Association; Bill Vogler, Washington State Association of Counties; Bruce Wishart, People for Puget Sound; Gloria Rodrigues, Washington Association of Community and Migrant Health Centers; Bev Hermanson, Washington Federation of State Employees; Laurie Lippold, Childrens' Home Society; Todd Mielke, Spokane Regional Chamber & SIRTI; Harry Steinmetz, Washington Association of Housing Services for the Aging; Lynn McKinnon, Washington State Employees' Association; Lonnie Johns-Brown, Washington Association for Education of Young Children; Ruta Fanning, Higher Education Coordinating Board; Dick Thompson, University of Washington; and Jim Justin, Association of Washington Counties.

(Opposed):  Jane Klausen, Washington State International Trade Association; Becky Bogard, Washington State Hotel Lodging Association; Bill Stauffacher, Washington Public Broadcasting Association; Jerry Reilly, Long Term Care Pharmacy Alliance; Joanne Moore, Washington State Office of Public Defense; Paul Vronsky and James McMahon, Associated Students of Washington State University; Laurie Mitchel, Harborview Medical Center; Len McComb, Washington State Hospital Association; Martha Choe, Office of Trade and Economic Development; Larry Paderson, Health and Safety Networks and the Family Planning Council; Mike Neil, Washington Healthcare Association; Sarajane Siegfriedt, Association of Alcoholism and Addiction Programs; Paul Barry, Childrens Alliance; Sandy Brown, Deaconess Children's Services; Donna Patrick, Developmental Disabilities Council; Seth Dawson, Common Ground for Children; Greg Hanon, Western States Petroleum Association; Kevin Glacian-Coley, Washington State Catholic Community Services; Steve Daschel, Washington Association of Education Centers; Janet Hedgepath, Catholic Community Services; Kerry Randow, Washington Association of Education Centers; Charles Hasse, Washington Education Association; Carol Molnes, Parent Trust; Melanie Stewart, Treatment Accountability for Safer Community; and Sharon Foster, Washington Traffic Safety Education Association.

(Neutral):  Terry Bergeson, OSPI; and Bill Halleman, Archdiocesan Housing Authority.