Latest news with #Ormsby
Scoop
24-04-2025
- Business
- Scoop
Cash Injection To Protect Whirinaki From Floods: ‘Too Important To Fail'
Funding has been granted for a new plan to protect a huge Hawke's Bay business from flooding and move the community's homes around it out of post-cyclone limbo. The plan will protect Pan Pac Forest Products' mill at Whirinaki, and see 46 homes which were inundated by water as Cyclone Gabrielle hit on February 14, 2023, move from Category 2C to Category 1. Whirinaki residents have fought long and hard for their community. More than a year ago one couple even installed a seat outside their home with two skeletons sitting on it and a sign that read 'waiting on decisions'. HBRC said in January its initial flood resilience project, which included raising and strengthening stopbanks and raising a section of State Highway 2, and upgrading its culverts, was facing a large funding shortfall. The project was needed to move the community's post-cyclone Category 2C properties into Category 1 and was expected to be funded through Transport Rebuild East Coast (TREC). But a significant reduction to TREC's budget meant the funding was no longer available for it, leaving HBRC to again petition the Government for funding. Now central Government has agreed to redirect an additional $9 million and Regional Council has committed a further $3 million, after a change of design. It will allow the on-hold project to go ahead. HBRC chair Hinewai Ormsby said it marked a significant milestone for the Whirinaki community and residents who had faced considerable uncertainty. 'The funding commitments from our council and Central Government demonstrate our shared belief in the project's benefits for impacted property owners. Most importantly, it will help them move forward with their lives,' Ormsby said. Pan Pac Forest Products general manager Tony Clifford said he was delighted, and it would provide confidence that its site is durable. 'I couldn't ask our employees to go through the aftermath of a cyclone again,' Clifford said. A spokesperson for HBRC said over the past six months, it explored options to reduce the project's costs, which escalated to more than $34 million from the original $11 million budget, creating a shortfall. 'The original stopbank alignment that followed the Whirinaki Drain required a new culvert to be built under the State Highway and significant road raising to tie the road into the stopbanks, resulting in the cost blowout. 'With a refined design, the cost had been reduced to about $23 million, with the new funding bridging the gap from the original budget.' The spokesperson said HBRC and its design team were working through the design details of the proposed new alignment. 'The updated alignment still includes raising State Highway 2 and stopbanks from the highway to the coast to provide flood mitigation to Category 2C areas. 'The raising of SH2 is now more modest due to the revised location being at a higher elevation,' the spokesperson said. 'The works still include upgrades to the existing stopbank around Pan Pac Forest Products to protect the industrial area, but due to the new alignment being further north it removes the need to upgrade the Whirinaki Drain culvert under SH2. 'As the design progresses and we have greater certainty on the detail of the stopbank design, including its height and width, further information will be made public once we have engaged with affected landowners and local residents.' HBRC councillor Martin Williams said the project was 'mission critical', not just for the Whirinaki communities it would better protect, but for the Hawke's Bay economy. 'The Pan Pac Pulpmill, one of the region's biggest employers, was severely impacted by Cyclone Gabrielle. With rising electricity and insurance costs and a highly volatile export market, I doubt the mill would survive another cyclone without this stopbank project. Simply put, this project is in the 'too important to fail' category.' Clifford said they were right behind the council plan. 'It's hard to say what any future weather event would look like but if we haven't done our utmost to prepare and protect any investor would be saying what's the point,' he said. He said Pan Pac was back running at 95% after the rebuild. 'There are a few teething problems but that's expected with new plants. 'We are concerned about the winter, with the cost of electricity but hopefully the recent rain around the country will help ease that.' He said along with the stopbank, the management of the river mouth was a critical part of future flood protection. 'We need both and HBRC has taken steps in the right direction by installing a river level monitor and cameras. 'It means all that work that went into the rebuild will not be wasted. 'We will be doing whatever we can to support council including supplying fill from our quarries for use on the stopbanks.'
NZ Herald
23-04-2025
- Business
- NZ Herald
Government, Hawke's Bay Regional Council commit millions to protect Whirinaki from floods
The project was needed to move the community's post-cyclone Category 2C properties into Category 1 and was expected to be funded through Transport Rebuild East Coast (Trec). But a significant reduction to Trec's budget meant the funding was no longer available for it, leaving HBRC to again petition the Government for funding. Now the Government has agreed to redirect an additional $9 million and the regional council has committed a further $3m, after a change of design. It will allow the on-hold project to go ahead. HBRC chair Hinewai Ormsby said it marked a significant milestone for the Whirinaki community and residents who had faced considerable uncertainty. 'The funding commitments from our council and central Government demonstrate our shared belief in the project's benefits for impacted property owners. Most importantly, it will help them move forward with their lives,' Ormsby said. Pan Pac Forest Products general manager Tony Clifford said he was delighted and it would provide confidence that its site is durable. 'I couldn't ask our employees to go through the aftermath of a cyclone again,' Clifford said. HBRC said over the past six months, it explored options to reduce the project's costs, which escalated to more than $34m from the original $11m budget, creating a shortfall. 'The original stopbank alignment that followed the Whirinaki Drain required a new culvert to be built under the State Highway and significant road-raising to tie the road into the stopbanks, resulting in the cost blowout,' it said in a statement. 'With a refined design, the cost had been reduced to about $23 million, with the new funding bridging the gap from the original budget.' HBRC and its design team were working through the design details of the proposed new alignment. 'The updated alignment still includes raising State Highway 2 and stopbanks from the highway to the coast to provide flood mitigation to Category 2C areas,' the statement said. 'The raising of SH2 is now more modest due to the revised location being at a higher elevation. 'The works still include upgrades to the existing stopbank around Pan Pac Forest Products to protect the industrial area, but due to the new alignment being further north it removes the need to upgrade the Whirinaki Drain culvert under SH2. 'As the design progresses and we have greater certainty on the detail of the stopbank design, including its height and width, further information will be made public once we have engaged with affected landowners and local residents.' HBRC councillor Martin Williams said the project was 'mission-critical', not just for the Whirinaki communities it would better protect but for the Hawke's Bay economy. 'The Pan Pac pulp mill, one of the region's biggest employers, was severely impacted by Cyclone Gabrielle. With rising electricity and insurance costs and a highly volatile export market, I doubt the mill would survive another cyclone without this stopbank project. Simply put, this project is in the 'too-important-to-fail' category,' Williams said. Clifford said they were right behind the council plan. 'It's hard to say what any future weather event would look like but if we haven't done our utmost to prepare and protect [the mill], any investor would be saying 'what's the point',' he said. He said Pan Pac was back running at 95% after the rebuild. 'There are a few teething problems but that's expected with new plants. 'We are concerned about the winter, with the cost of electricity, but hopefully the recent rain around the country will help ease that.' Clifford said along with the stopbank, the management of the river mouth was a critical part of future flood protection. 'We need both and HBRC has taken steps in the right direction by installing a river level monitor and cameras. 'It means all that work that went into the rebuild will not be wasted. 'We will be doing whatever we can to support [the] council, including supplying fill from our quarries for use on the stopbanks.'
Yahoo
25-03-2025
- Business
- Yahoo
Democratic lawmakers unveil budget proposals; call on higher taxes for wealthy and companies
Mar. 24—OLYMPIA — Democratic lawmakers unveiled their budget plans Monday morning, as the legislature looks to balance preserving key public services while addressing Washington's multibillion-dollar budget deficit. Both plans call on the state to address the shortfall through a mix of cuts and new revenue, while Republicans continue to insist a balanced budget is possible without raising taxes. While neither Democratic proposal is likely to be fully implemented, the budget plans serve as bargaining positions for negotiators as both chambers work to adopt a budget by April 27. Following the release, Rep. Timm Ormsby, D-Spokane, who chairs the House Appropriations Committee, tied the state's budget challenges to "impacts from the federal government" that include potential tariffs and continued inflation. "We took these challenges on head-first, working every day with the people of Washington first in our mind," Ormsby said in a statement. "Our guiding principle was to protect investments that keep people healthy and to reduce harm wherever possible. This budget is a testament to that approach." The plans come after Senate Republicans unveiled a budget they say shows the state can adopt a balanced budget without imposing new taxes, by pausing previously passed spending that has not taken effect and forgoing previously negotiated collective bargaining agreements with state workers. The Republicans' plan instead offers state workers a $5,000 bonus paid over two years. "The Senate Democrats claim their budget makes 'tough choices,' but the reality is, the tough choices are going to fall on the parents and college kids and families who will lose out because of the majority's misguided priorities," Sen. Chris Gildon, R-Puyallup, said in a statement Monday. Senate Minority Leader John Braun, R-Centralia, said the Senate's plan "does exactly what we expected — it raises taxes and overspends. "Their plan adds $12.1 billion in new policy spending despite Washington already facing a multibillion-dollar budget shortfall," Braun said. "Instead of living within existing revenue, Democrats are pursuing unsustainable spending, leaving the state vulnerable. As the saying goes, 'If you find yourself in a hole, stop digging." Senate proposal While the size of the state's deficit fluctuates depending on who you ask on a given day, Sen. June Robinson, D-Everett, chair of the Senate Ways and Means Committee, said she estimated it at roughly $12 billion over four years as she crafted their budget proposal. The chamber's budget writers unveiled a two-year, $78.5 billion operating budget on Monday, up from $72.4 billion between 2023 and 2025. The plan calls for $6.5 billion in cuts over the next four years and $16 billion in new revenue. Under the plan, revenue would increase in the second biennium, with the plan projecting $6.2 billion in additional revenue between fiscal years 2025 and 2027 and $9.8 billion between 2027 and 2029. "Crafting this budget required tough choices, thoughtful conversations, and a strong commitment to the people of Washington," Robinson said in a statement. "An all-cuts approach was never on the table — not when it meant turning our backs on schools, health care, and the basic services people depend on. This budget is a choice to lead responsibly — to face the reality in front of us and respond with solutions that are not just balanced and sustainable, but worthy of the people we serve." Under the plan, the legislature would use $1.6 billion from the state's rainy day fund in fiscal year 2026, which would be repaid the following year. The fund would be further replenished in future years, with $7.6 billion in reserves by the end of fiscal year 2029. "It does go low but quickly builds back to a very strong point," Robinson said. The plan would fund the collective bargaining agreements previously negotiated with state workers, though it calls on state workers to take 13 unpaid days off in fiscal year 2026, the equivalent of a 5% pay cut. While Gov. Bob Ferguson previously proposed a monthly furlough of one day for state employees for two years, the Senate Democrats' plan would only be in effect for one year. The budget would also invest $750 million per year into K-12 education, with most of the funds going toward school operating costs and special education. The plan would also not impact the bonuses that National Board Certified Teachers at K-12 schools receive. Lawmakers in the chamber offered a preview of their plan to address the deficit last week as they proposed taxing Washington's wealthiest residents through what they called a "financial intangibles tax," allowing property tax increases to be set by inflation and population growth and removing the cap on employer payroll taxes. The plan also calls on the state to reduce the sales tax by half a percent, which Democrats argue would help make the tax code less regressive. "People are going to see real, concrete benefits from the investments we're proposing today — keeping schools open, providing special education services for students, food assistance for needy families, support for those with developmental disabilities and so much more," Sen. Noel Frame, D-Seattle, said in a statement. The Senate Ways and Means Committee will hold a hearing on the proposal Tuesday at 4 p.m., and could pass it out of committee Thursday. House of Representatives proposal While there is similarity in the two plans, budget writers in the House of Representatives took a slightly different approach as they crafted their plan. The budget calls on the state to spend $77 billion through the operating budget between 2025 and 2027. House Democrats have proposed a Financial Intangible Assets Tax of $8 on every $1,000 of assessed value on certain financial intangible assets, with the first $50 million exempt from the tax. Rep. April Berg, D-Mill Creek, said the tax would apply to around 4,300 residents and could raise $2 billion a year. Under the plan, House Democrats would not tap into the state's rainy day fund. The budget would also not cut the state's sales tax. House Democrats instead proposed a 1% B&O tax on businesses with income over $250 million, which Berg estimated would apply to around 400 businesses. The budget would also increase surcharge on specified financial institutions with a yearly income of $1 billion or more from 1.2% to 1.9%, which Berg said would bring in $600 million in fiscal year 2026 and $2 billion in fiscal year 2027. "This revenue package provides greater local fiscal flexibility, and asks the wealthiest Washingtonians to contribute more equitably to the programs and services our communities need and on which working families rely," Berg said. The proposal would fully fund the state workers' collective bargaining agreements and would not implement furloughs or cut pay. According to Ormsby, the plan would reduce travel, professional development, equipment and service contracts. National Board Certified teachers would also retain their bonuses under the plan. The House Ways and Means Committee will hold a hearing on the proposal Tuesday at 4 p.m., and could pass it out of committee Thursday.
Yahoo
19-03-2025
- Business
- Yahoo
Economic forecast projects Washington to see nearly a billion less revenue over four years
Mar. 18—OLYMPIA — Strapped for cash and searching for ways to cut spending, the job for budget writers in Washington became that much more challenging Tuesday after an updated economic forecast shows the state will bring in $845 million less over the next four years than it previously projected. During a meeting of the Washington State Economic and Revenue Forecast Council, Dave Reich, forecast council executive director, said that the updated forecast shows the decline in revenue through 2029. "This change reflects lower actual revenues and a generally lower forecast for Washington personal income, employment and building permits that likely mean lower revenues in the future compared to last fall." The drop is split over the next four years , with forecasts showing the state expects to collect $71 billion in revenue between 2025 and 2027, a decrease of $479 million from the last forecast in November, and then collect $76.4 billion between 2027 and 2029, a decrease of $420 million. According to Reich, the drop in revenue is partially due to a drop in sales and business and occupation tax income. "The latest revenue forecast confirms that our financial outlook remains challenging," K.D. Chapman-See, director of the Office of Financial Management, said in a statement. "OFM remains committed to supporting Governor Ferguson's efforts alongside the Legislature to develop sustainable solutions that keep essential services like education, health care, and public safety running effectively and ensure the well-being of all Washingtonians." The updated revenue forecast exacerbates a troubling financial outlook for the state, with the governor recently estimating it faces a $15 billion budget deficit over the next four years. The estimate, which came as Gov. Bob Ferguson announced a plan to cut $4 billion in state spending, came ahead of Tuesday's announcement. Following Tuesday's announcement, Rep. Timm Ormsby, D-Spokane, chair of the House Appropriations Committee, told reporters the new forecast "makes it that much more difficult for us to balance." During his remarks, Ormsby said that lawmakers are still "modeling what it's going to take" to fund state programs while retaining a "healthy enough" reserve to retain the state's bond rating and credit. "We're going to have to find more savings, and we're going to have to fine tune the revenue to balance and have reserves," Ormsby said. Identifying cuts, Ormsby said, has been somewhat of a "crap shoot and a guessing game." "We don't want to cut to the bone, but we also know that we have to make reductions," Ormsby said. "This just further quantified the reductions." In a statement following Tuesday's announcement, Ormsby said "House Democrats are taking a balanced approach to reducing the budget where we can and addressing our regressive tax structure to ask the wealthiest in our state to help us keep people alive." Democratic lawmakers will release their budget proposals Monday, with talk of new revenue streams likely to heat up in the coming days and weeks. During a media availability Tuesday morning, both Speaker of the House Laurie Jinkins, D-Tacoma, and Senate Majority Leader Jamie Pedersen, D-Seattle, said constituents had told them during town halls over the weekend that they desired "progressive revenue." "That was kind of the theme of many of our town halls, if not all of our town halls, in some way, shape or form," Jinkins said. Progressive revenue, Pedersen said, are taxes that try to "rebalance our tax code, so that we're no longer 49th best in the country, where low-income and middle-income people pay a disproportionately high percentage of their income to support state and local government." Sen. June Robinson, D-Everett, who chairs the Ways and Means Committee, said in a statement Tuesday that the updated revenue forecast "reinforces the need for a balanced and sustainable approach as we finalize the 2025-27 operating budget." "Throughout this process, we have been focused on making thoughtful, strategic decisions that protect essential services and put the state on a stronger financial footing," Robinson said. "The proposal we release next week will reflect that commitment, ensuring stability now and in the years ahead." Last week, Republicans in the Senate unveiled a spending plan they say proves the state can adopt a balanced budget without increasing taxes. Following the updated revenue forecast, Sen. Chris Gildon, R-Puyallup, said in a statement that "Legislative budget writers should take heed and show restraint going forward, especially with the uncertainty about actions at the federal level that could affect our situation. "The smart approach is to avoid new and higher taxes, limit new spending to core priorities like K-12 and public safety, preserve social services, and protect the rainy-day fund," Gildon said. Senate Minority Leader John Braun, R-Centralia, said during a media availability Tuesday that Republicans plan to "push back on taxes because they're bad for people across the state." Braun added that "the people of the state of Washington expect the Legislature to live within its means." The forecast did offer a silver lining for lawmakers, with the updated transportation budget showing an increase of $284 million in projected revenues through June 2029. According to the Office of Financial Management, the increase is largely tied to higher projections for the motor vehicle fuel tax and ferry revenue.
Yahoo
24-02-2025
- Politics
- Yahoo
WA lawmakers weigh further delay to early learning expansion
Advocates for the Early Childhood Education and Assistance Program rally at the state capitol on Feb. 6, 2025. (Photo by Laurel Demkovich/Washington State Standard) Nearly 15 years ago, Washington state lawmakers approved a plan to make a state-funded early learning program an entitlement for all low-income families who qualify. Since then, that plan has been delayed three times. As lawmakers face a multibillion-dollar budget hole over the next four years, it's becoming clearer that they will likely need to again push off the expansion — currently set to take effect in the 2026-2027 school year. 'I am not thrilled to bring this to your attention,' House Appropriations Committee Chair Timm Ormsby, D-Spokane, said in a public hearing earlier this month. 'It is a response to the fiscal reality that we are in.' Washington's Early Childhood Education and Assistance Program provides free part-day and full-day preschool and other services related to mental health, nutrition and family support for 3- and 4-year-olds in low-income families. As of last year, the program served more than 16,000 children in more than 480 locations across the state. The Department of Children, Youth and Families estimated that the state would need another 14,000 slots once the entitlement was fully implemented in 2031. To be eligible, families must earn no more than 35% of the state median income. That's $47,179 for a family of four, as of October. Some children whose families are over that limit may also be accepted if they meet other criteria, like being homeless, having parents who are incarcerated, or having developmental delays. 'We are serving our most vulnerable population,' said Michelle Rahl-Lewis, director of early learning for Tacoma Public Schools. 'One of our biggest goals is just really teaching the students how to self regulate and supporting our families in their own growth.' But offering the services for free is expensive, and in a year where lawmakers are looking for ways to fill a budget gap, delaying a further expansion of the program could provide significant savings for the state. A bill sponsored by Ormsby and requested by the Office of Financial Management would delay the entitlement until the 2030-2031 school year. At that point, it would become available to any family with an income at or below 36% of the state median. Starting in the 2034-2035 school year, any family with an income at or below 50% of the state median income would qualify. Ormsby's bill would also delay expansions planned for Working Connections Child Care, the state's subsidy program. The proposed delays align with budget proposals from both former Gov. Jay Inslee and Gov. Bob Ferguson. In Inslee's budget, the delay of the Early Childhood Education and Assistance Program accounted for nearly $146 million in savings through 2027. Delaying the state subsidy expansion would save another nearly $120 million. 'This is a tough time,' Sheri Sawyer, with the Office of Financial Management, told the House Appropriations Committee this month. 'You all are going to grapple with difficult decisions, and this is one more option for you to consider.' Ormsby emphasized that a delay is not a funding cut. 'This is not a step back,' he added. 'We're not taking away benefits that are currently occurring.' Rahl-Lewis said any cuts to current funding would be 'catastrophic' to Tacoma's program and many like it that families depend on. Early Childhood Education and Assistance Programs offer more than child care, said Stephany Contreras Roman, an early learning teacher in Tacoma. She said the program's teachers often wear many hats, like nutrition specialist, family support and interpreter. 'We're not just teachers,' she said. ' This is not just a one-role job.' Some early learning advocates said they were expecting to have to pause the entitlement implementation regardless of the budget situation because there aren't currently enough providers to handle an influx of new children who would be eligible. To recruit and retain more providers, advocates continue to push for higher pay and benefits for early learning and child care workers. Inslee's budget proposed an 18% rate increase for Early Childhood Education and Assistance Program providers, but that too could be undermined by the budget crunch. Budget talks won't fully ramp up until mid-March after lawmakers get updated revenue estimates. Until then, agencies continue to look for ways to cut spending per a request from Gov. Bob Ferguson.
