Gov. Chris Gregoire this afternoon signed into law the rewrite of the state’s two-year operating budget that was approved by the Legislature last month.
The budget was notable for higher education in that it contained no general reductions for the state’s colleges and universities or for student financial aid programs despite another steep budget shortfall.
In signing House Bill 2127, the governor also vetoed 24 specific provisions that called for spending or spending reductions. In the wash, the state’s ending fund balance shook out to $311 million, most of which is locked up in a hard to tap rainy day fund.
All eyes will be on the June 20 revenue forecast, which could either add to that with a positive report or reduce it with a negative one. Recent signs have been positive and Gregoire said today she expects it to be flat.
One notable veto pertains to how across the board reductions are to be made if necessary. The budget approved by the Legislature would have given special protections to other areas of the budget, leaving higher education vulnerable. With the veto, existing law is preserved.