WASHINGTON STATE

Washington State House Democrats

HOUSE DEMOCRATS

Rep. Brian Blake’s Legislative Update – April 9, 2013

We passed the final policy cutoff last Wednesday – the last day thay bills not related to the budgets were considered in committee.  Also, the Senate released a budget proposal, following Governor Inslee’s rollout of his plan last week. 

With those two budgets out, it’s now the House’s turn, and we expect to make our proposal public next Wednesday. Then the budget writers from both chambers will work toward a compromise budget that will support schools, public safety, and other vital state services for the next two years.


 

Comcast Newsmakers Interview

 Comcast-Blake


 

Health care for our heroes

Included in Governor Inslee’s budget proposal were assumed savings from Medicaid Expansion. Beginning next year, the federal government is offering to send our tax dollars back home to cover 385,000 Washingtonians making less than $15,000/year. Over the next two years, Medicaid Expansion is estimated to save our state about $265 million.

vethands

There is no shortage of good reasons to support Medicaid Expansion, and the Urban Institute has just given us yet another.

On the national level, about 1.3 million American veterans go without health insurance. But it doesn’t have to be that way.

We can all agree that we have a responsibility to these heroes, as well as their families, who have sacrificed so much for us. Medicaid Expansion gives us another opportunity to make good on that promise.

From the Urban Institute:

An estimated 40 percent of uninsured veterans (535,000 people) have incomes that, under provisions of the Affordable Care Act (ACA) could qualify them for Medicaid.

Whether or not these veterans qualify for Medicaid under the ACA depends on whether – and which – states opt to expand Medicaid.

Most of those eligible – about 414,000 uninsured veterans – will only have new coverage options if they live in a state that expands Medicaid.

Right here in Washington state, about 12,200 veterans would be eligible for health care coverage under Medicaid Expansion. We’ve still got a long way to go, but we can all agree this is a step in the right direction.

For the Urban Institute’s complete report, follow this link.


The $2 billion myth

 2bilmyth

Click on the chart for a larger version

One argument you will hear in the upcoming weeks is that the state has $2 billion more in revenue coming in during the upcoming budget cycle than we did during the last one – and that is true.

But it is also just one part of the equation.

Let’s say you drive your car 100 miles a week as part of your job responsibilities, and your boss gives you $50 a week to cover your gas expenses. Then one day your boss says, “Good news, I’m increasing your fuel stipend to $60, but we’re also doubling your route to 200 miles.”

While the stipend increase would be welcomed, is that really good news? The added miles would more than wipe out the extra $10 a week.

State expenses have also increased by more than $2 billion since the last biennium. As you can see in the chart, we have more kids in public schools, more students enrolling in higher education that need financial assistance, more people in prison, and more low-income families and seniors that need medical care.

In other words, it costs more this year to run the state than it did last year. Despite having more money this year, our revenues are not keeping up with expenses. Based on current expense and revenue projections, the state budget is about $1 billion short of paying for our obligations. When you add obligation to increase education funding by $1.3 billion, we’re about $2.3 billion short.


Personal income is up; investment in state is down

 GF-S revenue chart

Click on the chart for a larger version

The total personal income in the state of Washington rose by 4.5% from 2011 to 2012, the fourth-highest percentage increase among the states, the federal government says.

So at least some folks saw their income go up last year, which is certainly good news.

You might think that would also be good news for the state budget, since a bit of those increased earnings might be spent on goods that are covered by the state sales tax.

Turns out it hasn’t been such a budgetary boon. Why? Because over the last 20-odd years, state tax rates, as a share of that personal income, have dropped sharply. Washingtonians today pay a much smaller percent of their income for education, public safety, the State Patrol, bridges and highways, foster care and all the other services the state provides than they paid in 1995.


House Agriculture and Natural Resources committee wraps up!

Policy committees are wrapping up for the 2013 legislative session with the final policy cutoff last Wednesday.

The Agriculture and Natural Resource committee received 21 bills from the Senate and passed 10 of them, which will continue on through the process.

Even though the policy cutoff deadline is past, there is still work to be done. The House Agriculture & Natural Resource committee will continue to meet weekly.

To access the documents and presentations from all the legislative committee work sessions online, feel free to check the Electronic Bill Book.

If you want to know what bills passed through committee or are interested in following what’s going on in the House Agriculture and Natural Resources Committee you can sign up here to receive E-mail notifications. You can also check out our committee agenda to see what’s coming up next week.


Thank you for continuing to read my legislative updates!

Blakesig