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LEOFF Plan 2 board hears legislative update, awaits clarification on governor's 6% budget directive
Summary
At its Feb. 26 meeting the Law Enforcement Officers' and Fire Fighters' Plan 2 Retirement Board received a legislative update on multiple bills and staff described a provisional plan to meet the governor's 6% budget-reduction directive while the board awaits official guidance from the Office of Financial Management.
The Law Enforcement Officers' and Fire Fighters' Plan 2 Retirement Board met Feb. 26 and received updates on several bills the board is tracking and on a provisional plan staff submitted in response to the governor's directive for 6% agency budget reductions.
Jacob, staff member, told the board that "the board endorsed bill, House Bill 1349 and its companion, Senate Bill 5306," and that both bills "have been referred to the other side's fiscal committees" ahead of a fiscal-committee cutoff. He also reported tracking other legislation, including a DCP auto-enroll measure for local employers and a senate proposal to create a legacy pension system combining three existing Plan 1 systems, noting those bills were at different stages in each chamber.
Steve, staff member, described how staff responded to a mandatory request to show plans to reach 6% savings for the upcoming biennium after the governor requested agency submissions. Steve said staff submitted a provisional plan that achieves the 6% target by leaving his position vacant upon his retirement and using the resulting salary savings. "That was enough to get to the 6%," he said, adding that the board sets its budget and staff filed the placeholder only to meet the mandatory deadline.
Steve cautioned that the board's fund is not financed from the state's general fund and that it is unclear whether the governor's 6% directive will apply to the board. "As you know, the board is not funded from general fund or near general fund. So 6% savings don't actually affect the state budget, at all," he said, and added the board will seek clarification from the Office of Financial Management (OFM) after a planned press conference by the governor.
Mark Johnston, board member, asked whether "those decisions are made by the governor's office or the Office of Financial Management?" Steve replied that OFM is the budget agency implementing the governor's instructions.
Wolf, staff member, said he believed the board's funds are "not appropriated and are not allotted," and said that mechanism makes it "not feasible or possible for either OFM, the governor's office, or the legislature to implement a budget reduction pertaining to the LEOFF Plan 2 board." He added the board may still be encouraged to participate in broader cost-saving efforts with similarly situated entities.
Steve told the board he expects additional guidance quickly and that staff will present specific expectations for salary or budget reductions when the board resumes planning for its interim work plan. He also said the board's first newsletter of the year has been held until after session and would be mailed in May unless session extends.
Votes at a glance
- Motion to adjourn the Feb. 26 meeting until March: Passed by voice vote. The transcript records a motion and a second, followed by a voice "aye" and no recorded opposition. Individual roll-call tallies were not recorded.
The board's next scheduled meeting was noted as March 26; that meeting is expected to include a legislative update and an administrative update.
