February 6, 2011

Senate passes supplemental budget; must work with House to resolve differences

The Senate on Friday passed its version of the 2011 supplemental budget, 38-9.

Now ESHB 1086 goes back to the House to see if they will accept the Senate’s changes. So we need to fight for the good things in the Senate version (like restored funding for interpreter services, saving most of Basic Health and slowing the fast-track closure of Frances Haddon Morgan Center). But we need to make another run to save Maple Lane School and other areas we’ve covered in recent hotlines.

So in addition to those areas, we have one other area we know is important to you. So call 1-800-562-6000 and urge your legislators to support a final supplemental budget (ESHB 1086) that includes the Senate cuts to DSHS management, including in the ranks of the Washington Management Service. Those resources need to be on the front lines.

ALSO:

The Federation on Thursday testified in favor of a bill about which investment plan new PERS 3 enrollees would default to if they don’t make a choice.

SB 5494 would change the default investment option for new PERS 3 enrollees to the Retirement Strategy Fund, which is a little more aggressive in the early part of state service.

Federation Lobbyist Matt Zuvich told the Senate Ways and Means Committee that while a default investment option is needed, the best way would to have them default into PERS 2, which is a completely defined benefit plan.

“I believe that you’ll find the state actuary has done some looking into this and produced a fiscal note that says it would produce quite a little bit of savings to the tune of from $50 million to $60 million over 25 years,” Zuvich said. “And if we were going to take care of these folks that fail to choose, the best, most safe way would be to put them into that defined benefit program.”

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