Argument preview: SEIU 775NW v. Gregoire

(Scheduling note: be sure to return today at 2:15, when we will live blog today's argument.)

The underlying reality in this case is that Washington state currently faces a major budget crisis, with a projected $8 billion deficit. As a result, Governor Gregoire declined to include in her budget proposal pay increases for several classes of public employees.

SEIU 775NW says the governor violated state law by failing to include the union’s arbitrated agreement in her budget (for a cost of more than $87 million). Gov. Gregoire argues she has discretion to table public employee raises when they are not financially feasible.

Background
State law allows independent home care workers to unionize and bargain collectively with the governor’s labor office. SEIU 775NW represents 25,000 of these workers in Washington. The union and the state failed to reach an agreement for the 2009-11 budget, and the negotiations were referred to Arbitrator Timothy Williams. Williams awarded SEIU’s home care workers a raise: approximately 25-cents an hour in 2009 and 22-cents an hour in 2010 (total cost of the award exceeds $87 million).

By law, the governor submits an initial budget prior to legislative session. When Gov. Gregoire released her budget document last December, she failed to include a request for funds necessary to implement the SEIU 775NW arbitration award. The Office of Financial Management issued a statement determining that it was not feasible financially for the state to fund the agreement. (Several other union agreements were also left unfunded.)

This is significant because the legislature can only vote on funding for union-negotiated contracts or arbitration awards if requested by the governor.

Arguments
RCW 74.39A.300(2) sets the process for funding home care worker agreements. The request for funds cannot be included in the governor’s budget proposal unless the request:

(a) Has been submitted to the director of financial management by October 1st prior to the legislative session at which the request is to be considered; and

(b) Has been certified by the director of financial management as being feasible financially for the state or reflects the binding decision of an arbitration panel reached under RCW 74.39A.270(2)(c).

The SEIU 775NW argues that state law imposes a mandatory, non-discretionary obligation on the governor to request funds if these two pre-conditions are met. The union argues the binding decision of an arbitrator cannot be set aside by a "feasibility" determination.

The State argues that the governor’s actions constitute a lawful exercise of her discretion and authority. The State argues SEIU’s claim is not justiciable, the Supreme Court lacks jurisdiction, and the requested relief would violate the separation of powers doctrine.

Procedural History 
SEIU 775NW directly petitioned the Supreme Court for a writ of mandamus ordering Gov. Gregoire to withdraw her previous budget and submit a revised budget with a request for funds necessary to implement the arbitration awards. The Supreme Court is hearing this case on an expedited schedule, with a decision likely in time to impact the legislative budget process.

Petitioner SEIU 775NW is represented by Dmitri Iglitzin, Robert Lavitt, and Judith Krebs. Governor Gregoire is represented by the Hon. Rob McKenna, Stewart Johnston, and Maureen Hart.

Several other unions are pursuing similar (but separate) actions. One case, filed by the Washington Federation of State Employees in Thurston County Superior Court, was dismissed in February by Judge Anne Hirsh.

Case Briefs

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