Before the legislative session began this year, Governor Gregoire made several suggestions to reorganize and consolidate state agencies.  She recommended that the state consolidate education agencies, natural resource agencies and central services; centralize IT by creating the Consolidated Technology Services agency; create an Office of Civil Rights; eliminate 36 boards and commissions; and consolidate the state’s health care purchasing.  

Some of these suggestions (and some others) have advanced in the House and/or Senate, where they are being considered in the context of the 2011-13 budget.  All numbers cited below are for the 2011-13 biennium, and all bills have been re-introduced in the special session.  Only a few have been passed by either house at this point.

• SSB 5639 would consolidate state education agencies and create a new Department of Education.  The fiscal note estimates that this would reduce General Fund–State (GFS) spending by $569,376, total spending by $281,706, and FTEs by 6.5.

• SB 5182 would abolish the Higher Education Coordinating Board (HECB).  The HECB’s financial aid programs would be moved to a new Office of Student Financial Assistance, while its non-financial aid programs would be transferred to a new Council for Higher Education.  The bill was passed by the Senate May 3, and the fiscal note estimates that it would increase GFS spending by $217,624, decrease total spending by $356,755, and decrease FTEs by 5.0.

• 2ESB 5764 would create Innovate Washington, which would merge the Washington Technology Center and the Spokane Intercollegiate Research and Technology Institute (SIRTI).  The bill was passed by the Senate April 27.  The fiscal note estimates that the effect on spending would be zero.

• HB 1850 would create the Department of Conservation and Recreation (DCR).  It would abolish and transfer the duties of the Department of Fish and Wildlife, the State Parks and Recreation Commission, the Recreation and Conservation Funding Board to the new DCR.  The bill would also abolish the State Conservation Commission, the Pollution Liability Insurance Agency, the Columbia River Gorge Commission and the Department of Archaeology and Historic Preservation.  According to the fiscal note, GFS spending would be reduced by $1.6 million and total spending by $123,044. FTEs would increase by 1,788.

• SSB 5669 would create the Department of Fish, Wildlife and Recreation, to which the Department of Fish and Wildlife, the State Parks and Recreation Commission and the Recreation and Conservation Funding Board would be transferred.  The Pollution Liability Insurance Agency and the Columbia River Gorge Commission would be transferred to the Department of Ecology.  These changes are estimated to reduce GFS spending by $1.1 million, increase total spending by $447,900, and decrease FTEs by 8.7.

• SB 5931 would transfer the Department of General Administration, the State Printer, and portions of the Department of Personnel, Department of Information Services and Office of Financial Management (OFM) to the new Department of Enterprise Services (DES).  The State Printer would then be abolished as of December 1, 2011.  The Department of Personnel would also be abolished (the remainder of its programs would move to OFM).  The bill would establish the Consolidated Technology Services agency.  The fiscal note estimates that these changes would reduce GFS spending by $1.0 million, total spending by $38.3 million, and FTEs by 188.0.

• SHB 1720 would also transfer the Department of General Administration, the State Printer, and portions of the Department of Personnel, Department of Information Services and OFM to the new DES.  The fiscal note estimates these changes would reduce GFS spending by $494,225, total spending by $11.1 million, and FTEs by 62.0.

• SB 5503 would also transfer the Department of General Administration, the State Printer, and portions of the Department of Personnel, Department of Information Services and OFM to the new DES.  The fiscal note estimates these changes would reduce GFS spending by $495,000, total spending by $11.1 million, and FTEs by 62.3.

• SB 5761 would establish the Consolidated Technology Services agency and abolish the Department of Information Services.  The fiscal note estimates that this would increase GFS spending by $737,116, reduce total spending by $4.9 million, and decrease FTEs by 7.9.

• SHB 1841 would also establish the Consolidated Technology Services agency and abolish the Department of Information Services.  The fiscal note estimates that this would reduce GFS spending by $221,000, total spending by $7.7 million, and FTEs by 28.4.

• SHB 1371 would eliminate 31 boards and commissions, reducing GFS spending by $1.1 million, total spending by $1.1 million, and FTEs by 4.7.  It was passed by the House May 2.  SB 5469 would eliminate 35 boards and commissions, reducing GFS spending by $9.2 million, total spending by $10.3 million, and FTEs by 25.2.

• HB 1958 and SB 5557 would create an Office of Civil Rights, into which would be folded the Commission on Asian Pacific American Affairs, the Commission on Hispanic Affairs, the Commission on African-American Affairs, the Office of Minority and Women’s Business Enterprises, and the Human Rights Commission.  According to the fiscal note for SB 5557, the changes would reduce GFS spending by $1.1 million, total spending by $1.4 million, and FTEs by 4.5.

• HB 2033 would create the Department of Heritage, Arts and Culture, which would include the Department of Archaeology and Historic Preservation, the Washington State Arts Commission, the Washington State Historical Society, and the Eastern Washington State Historical Society.  According to the fiscal note, this would reduce GFS spending by $14.4 million, while the net impact on total spending would be zero.  FTEs would be reduced by 0.1.

• SB 5468 would create an Office of Forecast Councils.  The Caseload Forecast Council and the Economic and Revenue Forecast Council would be merged to form the new office.  According to the fiscal note, the “net state budget impact is zero.”

• E2SHB 1738 and SB 5477 would move Medicaid powers, functions and duties, including the Medicaid Purchasing Authority, from the Department of Social and Human Services to the Health Care Authority.  E2SHB 1738 was passed by the House May 2 and by the Senate May 9.  The fiscal note estimates that GFS spending would be reduced by $3.3 million, total spending by $2.0 million, and FTEs by 0.3.  (The Senate-passed budget did not include the Medicaid transfer.)