"A Shared Vision" Part Four: Economic Security

This post is the final installment in our four-part series on a shared vision for Washington State. The series is based on the Progress Index, a framework for analyzing the state budget that was developed by the Budget & Policy Center. The Progress Index utilizes four commonly-held values: education and opportunity, thriving communities, healthy people and environment, and economic security. Last week, I wrote about healthy people and environment.

State investments in economic security ensure that people can survive difficult financial times and take steps to improve their quality of life. Families succeed when parents are secure in their ability to provide basic necessities for their children. Workers prosper when workplaces are safe and financial protections exist in cases of injury or job loss. And everyone in state benefits when people can meet their basic needs and find meaningful employment.

Even in times of prosperity, we all face the risk of job loss, disability, or family crisis. When the economy is strained, public investments in economic security matter even more. State spending on economic security fell as a share of personal income in each biennium from 1995-97 to 2005-07. Funding increased in the 2007-09 budget due to increased reimbursement rates for child care centers and a new collective agreement with family child care providers. (See graph)


As the unemployment rate rises in Washington State due to the current economic crisis, unemployment insurance benefits play an increasingly important role in shoring up economic security in the state. Two recent stimulus efforts are directed at this benefit: the federal stimulus bill which passed last month, increases the weekly benefit amount by $25 for most claimants. The state also enacted new legislation in February increasing the weekly benefit amount by $45 and raising the weekly minimum amount for many claimants.

The combined impact will be an additional $70 per week for recipients and $480 million of additional money circulating through the state economy. Economists calculate that for every dollar of unemployment insurance issued, there is $1.64 generated in spending.

Safe and affordable housing is also an important component of economic security. Stable housing is a key variable to getting jobs, educational attainment, and health care. Research shows that quick rehousing plus supportive services can have a long-term impact on homelessness. But affordable housing is not readily available to many people living in Washington State: three-fourths of renters with incomes under $35,000 per year were paying more than 30 percent of their income in rent in 2007.

Finally, financial asset development is an important way for people with lower incomes to work towards improving their quality of life. Washington encourages lower income families to build assets through the state's Individual Development Accounts program. IDAs match the savings of lower income families to help build assets that can be used to start a business, buy a home, or pay for college.

But in other instances, the state inadvertently discourages asset building by limiting access to temporary cash benefits (TANF) based on assets the family possesses, such as a retirement account or a car used to commute to work or school. This system works against shared goals. Public programs should help people meet temporary needs without requiring them to deplete modest savings.

This post concludes our series on a shared vision for Washington State. The Budget & Policy Center will continue to use the framework outlined in the Progress Index to evaluate the state budget and analyze our long-term progress toward meeting research-based goals.

"A Shared Vision" Part Three: Healthy People and Environment

Today we continue our four-part series on the important role of public investments in our state. The series is based on the Progress Index, a framework for analyzing the state budget that was developed by the Budget & Policy Center. The Progress Index utilizes four commonly-held values: education and opportunity, thriving communities, healthy people and environment, and economic security. Last week, I wrote about thriving communities.

Good health ensures that people can take advantage of the social, economic, and civic life in their community. Likewise, a healthy environment allows people to enjoy food, water, and outdoor recreation without fear of pollution or toxins.

The challenges of achieving good health for all are increasing. As unemployment rates rise, so do the numbers of people without adequate health insurance. And even people who do have insurance can find the costs of health care to be more than they can afford. In addition, pollution in the environment threatens to overwhelm the health and safety of our air, water, land, and wildlife.

Public efforts can make a difference towards improving health and the environment in Washington State. The Budget & Policy Center has identified four research-based goals to help us focus our efforts in this area. They are:

- Protect Public and Environmental Health
- Support Families and Protect Children
- Expand Health Insurance Coverage
- Care of People with Long-Term Health Needs

Most of the state's investment in healthy people and environment goes toward expanding health insurance, caring for people with long-term health needs, and protecting children and the environment. (See graph)


As health care costs have risen over recent decades, Washington has made significant efforts to provide health care coverage to people without private insurance. The state's Basic Health program is designed to fill the gap between public medical assistance and private insurance for lower income workers. Established in 1988, it was the first program of its kind in the nation. In 2007, state policymakers set a goal to provide health insurance to every child in the state by 2010, by passing the Cover All Kids legislation. These are investments that all Washingtonians can be proud of.

The current economic crisis facing our state poses a serious threat to our efforts to expand access to high quality health care. Not only are insurance benefits at risk, but also the availability of providers. Community Health Centers are a key component of the state health care infrastructure. They provide comprehensive health services to patients with or without health insurance. In 2008, one-third of the patients served by community health centers was uninsured. Cuts in public health insurance programs have a direct effect on community health centers, which are already strained because of economic and health care trends.

During these tough economic times, it is easy to forget the important role that state government can play in improving the quality of life for everyone. But these investments do matter. For example, the preservation and maintenance of the Cedar River Watershed has been a remarkable achievement in sustainable use of environmental resources. The watershed includes over 90,000 acres of protected forestland and is only one of six water sources in the country that does not need fabricated filtration. It provides two-thirds of King County's water supply and is also used for important environmental research.

"A Shared Vision" Part Two: Thriving Communities

Today we continue our four-part series on the important role of public investments in our state. The series is based on the Progress Index, a framework for analyzing the state budget that was developed by the Budget & Policy Center. The Progress Index utilizes four commonly-held values: education and opportunity, thriving communities, healthy people and environment, and economic security. Last week, I wrote about education and opportunity.

Thriving communities rely on public investments that maintain our state infrastructure and protect our natural resources. Public structures such as transportation, communications, justice, and the arts keep our state economy in motion, our neighborhoods safe, and our cultural life vibrant. To create thriving communities, we need to do more than address short-term needs. We need thoughtful, long-term planning and the sustainable use of resources.

The state can promote economic growth and the wise use of resources while also ensuring that business, education, and the arts serve the interests of all Washingtonians. The Budget & Policy Center has identified four research-based goals that will help us make progress towards creating a state we all want to live in.

- Promote Economic Growth and Sustainable Development
- Strengthen Public Transportation and Infrastructure
- Protect Public Safety and Implement an Equal Justice System
- Ensure Efficiency and Transparency in State Government

Close to half of the state's investments in thriving communities go towards public safety and the justice system. Another sizable chunk is dedicated to efficiency and transparency in state government. (See graph) Much of the state's transportation investments are made through the capital budget, which is not considered in the Progress Index.


As the population grows in Washington State, our forests, farms, and recreation areas are at risk of development. One important state investment, the Washington Wildlife and Recreation Program, works to preserve and protect these areas through grants to local governments. Since 1992, the program has funded over 920 projects across the state to create parks, protect wildlife habitat, and preserve working farms.

At the same time, innovative economic development programs create jobs that pay livable wages for workers throughout the state. Investments in education and worker training programs, the renewable energy economy, and research and development all contribute to broad economic development. For example, Washington Manufacturing Services is a state supported nonprofit that provides small manufacturers with low-cost consulting services to help them increase productivity and improve competitiveness.In addition, state contributions to renovations of local landmarks are important for creating communities in which businesses can thrive.

Making smart investments in public safety means more than building new prisons. It requires research-based approaches to improving outcomes for offenders. Washington has made efforts to reduce recidivism among youth offenders by investing in the Family Integrated Transitions (FIT) program, which includes mental health and substance abuse treatment that begins while youth are still incarcerated and continues during the transition period back to their community. FIT is currently available in nine counties. A Washington State Institute of Public Policy study found that while expensive, the costs of the program were easily outweighed by the savings to taxpayers by avoiding future incarcerations.

Finally, meaningful participation by citizens in the decisions of government requires publicly accessible information on government policies and programs. Washington State's budget process has consistently earned high marks in national studies of transparency in government. However, the state's system for reviewing tax exemptions, which amount to $13 billion of lost tax revenue for the state, could be more transparent by including the exemptions in the state's annual budget process.

A Shared Vision for Washington State: Four-Part Series

Later today schmudget will post the first in a four-part, Friday series that outlines a shared vision for Washington State. The Budget & Policy Center recently published a report called the Progress Index which sets up a new framework for evaluating the state budget based on shared values and goals. The framework reminds all of us that we have a shared responsibility to create the state we want to live in. Together we must ensure that our air is clean, our drinking water is safe, and our public schools provide an excellent education to all students. This is work we must do together because no one person can do it alone.

The Progress Index highlights four essential values: Education and Opportunity, Thriving Communities, Healthy People and Environment, and Economic Security. The report divides the 2007-09 state budget into these four value areas (see graph) and identifies research-based goals within each area.


In these times of economic crisis, it is possible to lose sight of the important role of state investments in all our lives. We are all feeling the pinch of the recession, at home, at work, and in our state government. We must be thoughtful in our investments and make smart choices to protect the progress we’ve made and secure a better future for tomorrow.

You are welcome to read the report and share your thoughts with us. With this project, we hope to initiate a new conversation in Washington State about where we are, where we want to be, and how we can get there.