SENATE BILL REPORT

SB 6567

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 8, 2012

Title: An act relating to modifying the state expenditure limit to ensure that the paramount duty of educating children is met through a reprioritization of state government expenditures.

Brief Description: Modifying the state expenditure limit to ensure that the paramount duty of educating children is met through a reprioritization of state government expenditures.

Sponsors: Senators Zarelli and Benton.

Brief History:

Committee Activity: Ways & Means: 2/07/12.

SENATE COMMITTEE ON WAYS & MEANS

Staff: Steve Jones (786-7440)

Background: The state expenditure limit, first enacted in 1993 by Initiative 601, currently provides that annual state expenditures from the state General Fund cannot exceed the prior year's expenditures, plus a fiscal growth factor. The fiscal growth factor is the average growth in state personal income for the prior ten fiscal years.

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill (Proposed Substitute): The fiscal growth factor is the average of the sum of inflation and population change for each of the prior three fiscal years.

Excluded from the state expenditure limit are (1) state allocations to school districts and educational service districts, and (2) appropriations to state institutions of higher education and student financial aid programs.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: The bill takes effect on July 1, 2012.

Staff Summary of Public Testimony: OTHER: We fully support the concept of exempting education funds from the state expenditure limit, but we are concerned about the effect this will have on the other areas of state government. The children of the state need quality education, but they also need other social and health services. The ability of children to learn is affected by funding cuts in other state programs.

Persons Testifying: OTHER: Dan Steele, WA Assn. of School Administrators.