From: Larry Ganders, Assistant to the President
Washington State University
925 Plum St. SE - Building 4, P.O. Box 43165
Olympia, WA 98504-3165
For developments on the governor's bill actions and the third special session, visit:
www.olympia.wsu.edu
2nd Special Session adjourns
Lawmakers return July 16
The Washington State Legislature adjourned Thursday around midnight.
The second-longest Legislature in history has featured wrangling against the backdrop of two Olympia-area earthquakes, a drought, capitol damage that pushed Senate and House sessions that had to be squeezed into hearing rooms, a 49-49 House tie, a slim Senate Democratic majority, a tight budget made tighter by tax cuts and voter initiatives, a crisis in agriculture, an all-night budget session in the full House, and most recently, the tragic death of a Moses Lake firefighter, son of Rep. Gary Chandler, whose funeral services are held today.
Events in higher education were also a complication. Campuses were marked by public employee strikes, teaching assistants at the University of Washington also had a walk out, research and extension facilities at UW (where WSU also had offices) were fire bombed.
Its hard to remember clear back to January 8 when the legislative season began or even further back to August when WSU finalized its budget request for submittal to the Higher Education Coordinating Board, the governor, and the Legislature.
It's not over:
$20 MILLION MOSCOW-PULLMAN HIGHWAY PROJECT
COULD BE DECIDED IN JULY SPECIAL SESSION
Lawmakers managed to pass a "current law" transportation budget Thursday that spends at typical levels and leaves out anticipated design work for the I-405 corridor east of Lake Washington. The session goal of a more aggressive transportation budget will be the central topic of the third special session that begins July 16.
A project to improve the Pullman-Moscow highway to divided four-lanes and substantial interchange work to the Pullman-Spokane highway could also hinge on the outcome of this third special session. The traffic deaths of WSU students along the Pullman-Moscow Highway has prompted regional transportation officials to give a higher priority to replacing six miles of Highway 270 with an improved system that will resemble Interstate 90 in Lincoln County. Successful funding in the July session could result in right-of-way acquisition for the Pullman-Moscow project by 2002, construction in 2003, and completion in 2004.
LOCKE EXPECTED TO APPROVE HIGHER EDUCATION
CAPITAL AND OPERATING BUDGETS
While work remains to be done on long-term transportation issues, the legislative action directly impacting Washington State University appears to be complete with the passage of budgets to supplement the current biennium, a 2001-2003 operating budget, and a 2001-2003 capital construction budget. Staff members for Gov. Gary Locke indicate he will likely sign the biennial budgets into law, probably by Wednesday or Thursday. That would complete WSU's appropriations process just three or four days before the end of the biennium.
It is a reminder that months of legislative budget gridlock could have closed down state government if it had last just a few more days. The Legislature left some holes in the budget when the House yesterday refused to pass legislation transferring $125 million out of surplus pension funds. However, there is a growing consensus that higher education will not have to suffer from that decision, that it will NOT be addressed in the July session, and probably will not be considered again until lawmakers convene in January for the 2002 regular session.
WSU SALARIES FOR ALL EMPLOYEES INCREASES
AN AVERAGE OF 3.7 PERCENT, EFFECTIVE JULY 1
Washington State University put its employees at the top of its legislative agenda this session to drive home its message on the importance of focusing on quality. As reported earlier, the final budget will provide an average 3.7 percent salary increase effective July 1. WSU has done enough advance planning that it will be able to implement the new pay scale on schedule.
HEALTH PREMIUMS INCREASE BUT NO CHANGE IN OFFICE
COPAYMENTS OR PRESCRIPTION BENEFITS
Beginning
Jan. 1, 2002 there are legislative increases in health insurance deductions that
will show up on all employees’ paychecks but they will be more than offset for
PERS II employees by a substantial reduction in their retirement contribution
rates. The PERS II rate reduction is effective July 1, 2001.
Employee costs for managed care plans are expected to increase 9.1
percent and the Uniform Medical Plan is expected to increase 12 percent in 2002.
The Health Care Authority estimates the average employee monthly health
insurance premium rate would increase from $27.78 this year to approximately $52
next year and $58 in 2003.
SENATE LEAVES TIAA-CREF RETIREMENT PLAN INTACT
PERS II WILL SEE RATES DROP
Employees on the state PERS II system will see the rates charged to them for the defined benefit retirement program drop significantly in the upcoming biennium to reflect changes recommended by the state actuary. This will offset some of the legislatively-ordered increases in employee health insurance payroll deductions that were necessary to freeze co-payments ($10 per visit) at current levels.
The employee cost for PERS II will be reduced from the current 2.43% to a .88% (.0088.) However, PERS I and TIAA-CREF employees will not have the retirement contribution reduced and will notice the increase due to the insurance
costs that will occur Jan. 1, 2002. The deduction rate for a PERS I employees, for instance, remains statutorily fixed at 6%.
Somewhat unexprectedly, the Senate decided not to pass House Bill 2244, which would have made adjustments to the TIAA-CREF retirement system. There had been legislative criticism that the TIAA-CREF program, because it guaranteed a low minimum benefit to faculty members was neither a "defined benefit," nor a "defined contribution" plan. The measure to remove the minimum benefit or "supplementation" and clarify it is a defined contribution plant was approved by the state House of Representatives but died on the Senate calendar yesterday.
This update is shared by broadcast fax and electronic mail to friends of Washington State University as government developments occur. Contact Michelle Delaney, WSU Government Relations, 509/335-6292 to be added to the list. Call Larry Ganders at 360/956-2165; From WSU Campuses, Dial 8-2165. e-mail: Ganders@energy.wsu.edu. Contact Jane Yung Dennie in Olympia at 360/956/2164. For federal issues, contact Kristi Growdon at 206/219/2424. For state bill status and other government info, visit our improved web page at www.olympia.wsu.edu.
