Transcript Document

GOVERNOR INSLEE’S PROPOSED
2015−17 BUDGET
WSSDA – WASA – WASBO
Legislative Conference
March 1, 2015
Our budget needs & obligations
far exceed revenue projections
PROJECTED
REVENUE GROW TH
MAINTA IN SERVICES
AT CURRENT LEVELS
POLICY
OBLIGATIONS
&
LAWSUITS
BASIC
EDUCATION
OBLIGATION
(HB 2776)
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2015−17 BUDGET SOLUTION
(INCLUDING I-1351)
Cuts and
Savings $423M
Budget
Stabilization
Account
$450M
Net Revenue
Increase
$1.42B
Fund Transfers
$217M
I-1351 Phase-in
$1.55B
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Under the Governor’s budget …
Our schools
will be
stronger
Our kids
will be
healthier
Our air
will be
cleaner
Our tax system
will be
fairer
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Education
» Largest-ever state investment in early learning
» Increases basic education funding by $1.3 billion:
› Reduce K-3 class sizes to 17 ($448 million)
› Implement full-day kindergarten statewide in 2016−17 ($108 million)
› Fully fund MSOC in 2015−16 ($752 million)
» Promotes student success, higher graduation rates
($87 million)
» Funds first teacher COLA since 2008
» Freezes tuition and boosts financial aid
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Health & human services
» Adds community beds for psychiatric patients
» Funds civil admission and competency restoration
wards at Western State Hospital
» Adds Child Protective Services staff to reduce
caseloads and speed up responses
» Adds child and family welfare services workers to
ensure safety of foster children
» Increases reimbursements to foster parents
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Natural resources
» Enhances State Parks operations and maintenance
» Implements carbon pollution reduction program
» Increases oil spill prevention and response
» Boosts efforts to prevent toxics in our waters
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State employee compensation
» Funds 28 collective bargaining agreements negotiated
under state law
» Funds modest pay raises for most state employees −
3% and 1.8%
» First general wage increase since 2008
» Total cost (including non-represented employees) −
$440 million NGF-S
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Revenue collections are at historically low levels when
compared to overall economy
7.5%
General Fund-State revenue as percentage of Washington personal income
7.0%
6.5%
6.0%
5.5%
5.0%
4.5%
4.0%
3.5%
1983
Projected
› In 1990, GF-S revenue equaled about 7% of total
personal income.
› If the same were true today, we would have about
$15 billion in additional revenue for current biennium.
1987
1991
1995
1999
2003
2007
2011
2015
Fiscal Year
Washington State Economic and Revenue Forecast Council, September 2013
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Alaska
$50
Wisconsin
Hawaii
Source: Bureau of Economic Analysis and Census Bureau
U.S. Department of Commerce
South Dakota
Tennessee
Alabama
Missouri
Oklahoma
Virginia
Florida
South Carolina
Georgia
New Hampshire
Idaho
Texas
Arizona
Louisiana
Montana
WASHINGTON
Utah
Mississippi
North Carolina
$130
Oregon
Colorado
Maryland
Nevada
Kentucky
Arkansas
Indiana
New Mexico
Michigan
Kansas
Massachusetts
Nebraska
Pennsylvania
Ohio
Iowa
Illinois
Delaware
Rhode Island
$150
Connecticut
California
West Virginia
$210
Minnesota
New Jersey
Maine
Vermont
Wyoming
New York
North Dakota
In 1995, Washington ranked 11th in state and local tax
collections … By 2011, we ranked 35th
$230
State and Local Tax Collections Per $1,000 Personal Income
Fiscal Year 2011
$190
$170
U.S. Average = $108.31
Washington $98.95
$110
$90
$70
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Governor’s revenue package
» Impose 7% tax on capital gains above $25,000 for
individuals, $50,000 for couples ($798 million)
» Increase state cigarette tax by 50 cents per pack; start
taxing e-cigarettes/vapor products ($56 million)
» Repeal 5 tax breaks ($282 million)
» Use portion of new revenue generated by marketbased carbon pollution reduction plan ($380 million)
» Reinstate or extend 8 tax breaks, including B&O credit
on research and development
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