Session Ends With "All-Cuts, Could've Been Worse" Budget; Several Legislative Victories

The state Legislature adjourned about 1 a.m. Monday morning after having passed the "All-Cuts, but Could've Been Worse" budget the night before.

The governor this morning announced she'd call a special session soon to deal with a handful of bills needed to implement the budget. She is recommending a session of only a day or two. But the budget itself has been approved.

Now, if you've been following these hotlines and our website over the weekend, you know the major details of the budget. We'll recap everything in a moment.

But first, here are some updates we had first on our website that happened since the budget passed the Senate Saturday night:

• The Senate and then the House on Sunday passed SB 6162, correcting a flaw in ESSB 5288, the Community Corrections supervision bill, which got final approval Saturday night (details below). SB 6162 adds back the requirement that offenders who have a current conviction for a serious violent offense must be supervised by the Department of Corrections regardless of the offender's risk to re-offend; this represents another big victory for Federation Community Corrections members in their session-long campaign for public safety. The Senate vote on SB 6162 was 42-1. The House vote was 95-0.

• The House late Saturday passed SB 6157, 94-0, the "No Harm, No Foul" pension calculation bill (see below for details). That sent it to the governor.

• The Senate OK'd an amendment to SHB 2341 that creates a voluntary opt-in donation program for public employees to help offset enrollment cuts in the state Basic Health Plan. That bill went to the governor.

• The Senate early Sunday approved and sent to the governor the PEBB health insurance eligibility bill, SHB 2245, on a vote of 43-0; they defeated an amendment from Sen. Cheryl Plug that would have removed the requirement that benefits be substantially equivalent to 1993 levels. That bill went to the governor as well.

WHAT DOES IT ALL MEAN?

Here's a wrap-up of the 2009 session and its effect on WFSE/AFSCME members.

Compared to where we started out way back in the snowy days of December when the governor rolled out her budget proposal, thanks to your daily, full-court press, many of your messages got through.

Given what Sen. Rosa Franklin called the "global economic meltdown," the final budget (ESHB 1244) could have been worse.

STATE EMPLOYEE SACRIFICES

And when the final chapter is written on this horrific $9 billion budget deficit saga, the record will show that it was your sacrifice of more than $1 billion in pay, pension contributions, health care funding and layoffs that helped balance the budget:

Economics (pay raises, adjustments, etc.) - $140,000,000
Pension Contributions - $448,633,000
Health Insurance - $200,000,000
Layoffs (4,000 FTEs) - $240,000,000

TOTAL LOST: -$1,028,633,000

LAYOFFS COMING; FURLOUGHS, OTHER WORK HOUR REDUCTIONS ENCOURAGED BUT NOT REQUIRED TO AVOID LAYOFFS

The final budget encourages but does not require agencies to consider furloughs, reduced work hours and voluntary leave without pay to trim their budgets. All those impacts are subject to bargaining to meet the wishes of our members in each agency or institution.

In addition, the final budget also allows agencies to offer voluntary retirement or "downshifting" incentives to save money and cut the number of layoffs. Those have to be cost-neutral or have to save money.

And on layoffs, the number tossed around is about 7,000 public employees, but that includes K-12 teachers, higher education faculty and others not represented by the Federation. So the actual impact on Federation members won't be as high-but it's still too high. Bargaining over the impacts of layoffs on an agency-by-agency, institution-by-institution basis holds the potential of finding additional alternatives to further cut the number of job losses. That is the value of having a contract. More on that later.

STEP INCREASES SAVED

All of your economic benefits negotiated in the 2009-2011 contracts bargained last fall were taken out. That's why we had to re-negotiate the contracts this spring.

But your ongoing step increases remain. The Senate on Saturday night defeated an amendment proposed by Sen. Joseph Zarelli that would have blocked step increases. So if you're eligible for step increases, you will continue to get them.

HEALTH INSURANCE

The final budget cuts funding for health care by about $200 million. Lawmakers assumed a lower medical cost inflation rate of about 4 percent. If costs come in higher, the Public Employees Benefits Board will consider raising office visit co-pays and other point-of-service costs. Also, in this topsy-turvy year, now that the Legislature has acted on health care funding, the Federation-led Super Coalition of all unions will now head back to the table. They'll negotiate to keep the current premium share split where the state picks up 88 percent of the premium and employees pay 12 percent.

The Senate on Saturday defeated an amendment proposed by Zarelli that would have added even more potential costs to your health benefits by another 2 percent.

MUCH SAVED-FOR NOW

The final budget OK'd over the weekend saves institutions, hatcheries, parks and GA-U. But it funds studies that could lead to closure of institutions. Lack of revenue could still close six hatcheries.

This is a big victory given the initial push to close Yakima Valley School, Naselle Youth Camp, Green Hill School, seven hatcheries and 50 state parks and eliminate the General Assistance-Unemployable program.

• The budget directs the Office of Financial Management to study the possible closure or downsizing of several institutions, specifically in Corrections, Green Hill School and Maple Lane School in Juvenile Rehabilitation and all residential habilitation centers, like Yakima Valley School. The study is due Nov. 1. It must have a recommendation to eliminate 1,580 beds in DOC, 235 beds in Juvenile Rehabilitation and 250 beds in the RHCs. SB 6182 paving the way to close all RHCs never got out of committee.

• An amendment to take the target off Green Hill School and Maple Lane School in Juvenile Rehabilitation failed in the Senate Saturday night. The amendment by Sen. Dan Swecker of the 20th District would have expanded the study of possible JRA closures to not just focus on Maple Lane and Green Hill; merging the two different populations would have "catastrophic results," Swecker said.

• No fish hatcheries would be closed, with a big IF. If there aren't sufficient new revenues, the Department of Fish and Wildlife may close or convert six hatcheries: McKernan, Colville, Omak, Bellingham, Arlington and Mossyrock.

• State parks would all remain open with funding from the $5 "opt out" plan when drivers renew their license tabs. However, a budget proviso directs the state Parks Commission to pursue transferring ownership of state parks where local governments, tribes or others have expressed interest in taking them over.

• The General Assistance-Unemployable program remains, with more focus on getting the right services to people.

So we got some breathing room, but have to work in the interim to make the case against closures.

COMMUNITY CORRECTIONS

Thanks to a full-court press by Federation Community Corrections members to save jobs and public safety, the number of positions that could be lost has gone from the nearly 490 the governor requested now down to 265. That's because of the still troubling but much improved ESSB 5288 lowering supervision of offenders and cutting the length of sentences. That bill was mitigated by the 11th-hour passage of SB 6162 over the weekend that adds back the requirement that offenders who have a current conviction for a serious violent offense must be supervised by the Department of Corrections regardless of the offender's risk to re-offend. A proviso directs the Department of Corrections to make these reductions with the least possible impact on staff-leaving the door open to fewer job cuts.

HIGHER EDUCATION

Huge staff cuts across the line, but it's unclear how many Federation members would be affected. But the overall job cuts are as follows: University of Washington-637; Washington State University-362; Eastern Washington University-96; Central Washington University-100.5; The Evergreen State College-57; Western Washington University-130.5; the Community and Technical College system-835.1.

CHILD WELFARE SERVICES

2SHB 2106 and budget language sets up pilot projects to privatize Child Welfare Services. Federation members worked and mitigated the damage by cutting the privatized services from 100 percent to 30 percent. If the governor signs this into law, a committee will decide where the pilots will be. So this is another case where we have our work cut out for us.

ALSO:

• In the Juvenile Rehabilitation Administration, enhanced parole would be eliminated. Two contracted group homes, Griffin and Touchstone, would be closed.

• In Mental Health, staffing at state hospitals is cut by about 16 positions.

• At the Special Commitment Center on McNeil Island, 32 residential rehabilitation counselors would be cut.

• In Fish and Wildlife, seven enforcement officer positions would be cut.

LEGISLATIVE VICTORIES

In a session that focused on the horrendous $9 billion deficit, Federation members did score some major legislative victories-and made some bad bills not as bad:

WASHINGTON MANAGEMENT SERVICE

ESHB 2049, initiated by the Federation, will bring transparency to the Washington Management Service and exempt service. It requires the Director of the Department of Personnel to report to the governor and Legislature annually on the number of classified, Washington Management Service, and exempt employees; the number of bonuses and performance-based incentives awarded to agency staff; and the cost of each bonus or incentive awarded. It also makes it easier to appeal attempts to exempt vacant positions.

PARKS

SHB 2339 allows the state to start collecting a $5 fee from drivers when renewing license tabs to fund state parks. They can opt out of the fee. This is the funding plan that will keep all state parks open when some 50 had been on the chopping block.

PENSION CALCULATIONS

SB 6157 provides that average final salary calculations for Public Employees' Retirement System members not be affected by salary reductions due to reduced hours, leave without pay, or furloughs taken as part of an employer's expenditure reduction effort during the 2009-11 biennium.

COMMUNITY CORRECTIONS

It was a mixed bag, but Federation Community Corrections members won one major bill and greatly mitigated another.

ESSB 1792 Authorizes the Department of Corrections (DOC) staff to require an offender under the supervision of a community corrections officer (CCO) to submit to pat searches or other limited security searches without reasonable cause when the offender is on or preparing to enter the DOC's premises, grounds, facilities, or in its vehicles. It requires that staff of the same gender as the offender shall conduct pat searches, except in cases of emergency. Authorizes the DOC hearing officers, in addition to the court, to make determinations regarding whether an offender's arrest for a violation of a probation condition was appropriate. Requires the CCO to report circumstances and facts of arrest of offender, with recommendations, to a court or a DOC hearing officer. Authorizes a DOC staff member, in addition to a court, to approve release of an offender from detention on bail or personal recognizance after arrest by a CCO.

ESSB 5288 lowers supervision of low- and moderate-risk offenders. But Federation Community Corrections members succeeded in winning amendments to preserve several important parts of supervision of sex offenders and in cases of domestic violence. And a study will determine if it is effective. SB 6162 corrects ESSB 5288 and adds back the requirement that offenders who have a current conviction for a serious violent offense must be supervised by the Department of Corrections regardless of the offender's risk to re-offend.

FISH AND WILDLIFE ENFORCEMENT SERVICE TRANSFER

SHB 1953, signed by the governor into law April 21, allows Fish and Wildlife enforcement officers to transfer retirement service credit from PERS 2 and PERS 3 to LEOFF 2.

HEALTH CARE BILLS

ESSB 2245 preserves your health insurance eligibility rights and maintains the standard that benefits must remain substantially equivalent to 1993 levels.

ESSB 5892, the generic drug bill, ensures that those taking anti-psychotic and anti-depression medication can continue to get brand-name drugs rather than generics.

FISH HATCHERY TRANSFERS

2SHB 1951 is an example of a bad bill made better but not ideal. It allows privatization of any fish hatchery that closes in the next two years. But under pressure from Federation members, the bill requires these private "partners" to run the hatcheries with staff who are at least as qualified as current state staff. State funded maintenance or improvements must be done by bargaining unit employees; if not, bargaining unit employees get to compete for the work. However, with luck, we hope this becomes moot because of the proviso in the final state budget keeping hatcheries open if there is enough revenue coming in.

...AND THEN THERE'S THE CONTRACT

And in the end, it comes back to the contract. One of the biggest victories is maintaining a contract. Without rehashing the long trip that got us here, you set the precedent that saved the contract and sparked re-negotiation in the face of the tough economic times. You're having to sacrifice, but you have a contract to protect your rights on layoffs, furloughs and other possible reductions.

Health care now goes to negotiations by the Federation-led coalition. We expect those talks within a couple of weeks. Then you will ratify the re-negotiated contract.