GOVERNOR LOWRY VETOES $12 MILLION OF WHEN FUNDING
As expected, Gov. Mike Lowry has vetoed $12 million
of funding for the K-20 WHEN project contained in the supplemental
operating budget, Engrossed Substitute Senate Bill 6251.
The veto reduces the overall appropriation to $42.3
million, deleting funding from the Data Processing Revolving Account,
which the Governor described as a dedicated internal service fund
used by the Department of Information Services and other agencies
"on a cost-recovery basis." The Governor cited two
reasons for the veto:
"First, DIS' portion of the cash
balance in this account is obligated for purchasing equipment
and software needed to provide services to contributing agencies.
Second, dedicated state and federal revenues are
merged in this account and using those outside sources to help
finance the K-20 technology plan would be inappropriate. The
largest contributors to the balance include funds of the Department
of Social and Health Services and dedicated funds from the Departments
of Labor and Industries, Licensing, and Transportation. Diverting
these specific funds to a project not related to their intended
use would ultimately result in having to pay back the original
fund source."
The impact of the Governor's decision on the
Washington Higher Education Network, a $40 million proposal to
link all four-year institutions and the community colleges, is
uncertain. The Governor noted that, "Although higher
education is ready to proceed, K-12 is not expected to reach that
stage prior to the next legislative session. Since these funds
are not expected to be needed prior to the 1997 Legislative Session,
I will be looking toward making the required investment at that
time through proper funding sources," Lowry said.
The Governor reaffirmed his commitment to the project:
"I commend the Legislature for recognizing and addressing
this vitally important need for technology improvements in our
education system, but I cannot allow the improper use of the Data
Processing Revolving Account. Therefore, I am vetoing the $12
million appropriation..."
HEALTH BENEFITS VETO COULD RESULT IN WSU CUTS
OF $384,000.
Gov. Lowry's decision to take a stand against
reducing funding for state employee health benefits appears to
have resulted in cuts to higher education institutions, including
a $384,000 reduction to Washington State University. The Legislature
made the controversial decision to reduce the amount it pays for
health insurance because of a reserve created by lower-than-anticipated
costs. The Governor vetoed the Legislature's action, "because
this reserve should be available to address unanticipated expenditures
in the current biennium or to defer some of the increased funding
which will most likely be required in the 1997-99 biennium."
The Governor's veto will have no effect on
copayments by state employees or the budgets of most state agencies.
However, the Legislature funds health benefits for higher education
differently. The Legislature reduced total college and university
appropriations because of anticipated savings in Section 706 of
the budget bill. When the Governor vetoed Section 706, he forced
colleges and universities to keep paying a higher rate. The net
effect on WSU is a cut of $384,000. The
Office of Financial Management describes the impact on higher
education as an unintended consequence of the veto. They have
indicated they will recommend that the cut be restored in a second
supplemental budget for this biennium to be considered by the
1997 Legislature next January.
This update is shared by broadcast
fax and electronic mail to friends of Washington State University
as state government developments occur. Contact Karen Fischer,
WSU State-wide Affairs, 509/335-6665. Larry Ganders: 360/438-7552;
Fax: 360/438-8104. (ganders@tssnet1.tss.net) For bill status
and other legislative information visit our web page at www.wsu.edu/IR/wsulegis/olympia.html.
