Exploring Dedicated Funding Models to Support Mandated Operations Patrick Reed Washington State Josef Gasimov Washington D.C.

Ever-changing budgetary challenges How do you pay for it all? Ever-changing budgetary challenges Many jurisdictions face budgetary challenges that can change with each legislative or election cycle.

Purpose of this discussion Explore self-funding financial options We will look at financial options to support your daily operations with self-funding models from Washington State and the District of Columbia.

Why self-funding? Save time Retain people Support needs Customer service Save time each year/biennium during the budget cycle Retain the right amount of people to support business needs Support infrastructure and technology needs Most of all, deliver consistent and timely service to customers

WA and D.C. before Staff versus volumes Maintenance funding Heavy backlogs Not enough staff to keep up with filing or service volumes Not enough funding to maintain necessary office equipment, supplies, or a filing system Heavy backlogs, at times as much as 4-6 months to process articles and certificates

WA and D.C. after Adequate staffing New filing system Expanded services Backlogs are gone Adequate staffing to support business needs Developed and launched new filing system Expanded services and reduced fees Backlogs are gone, most filings are completed real time or within days of submission

How did we do it? (WA) Established funding needs Drafted legislation Lobbied the legislature Rallied stakeholders Established short term and ongoing funding needs Drafted legislation that was revenue neutral Lobbied the legislature with the positive impacts to business Rallied stakeholders and businesses to testify in committees

How did we do it? (D.C.) Pending changes to laws ID’d needs of proposed Act Rebalanced fee structure The legislature was preparing to replace and update existing laws Through involvement with the drafting members identified lack of funding to support changes in the proposed Act. Rebalanced fee structure to make it less impactful to customers

Ongoing challenges Legislation and funding Budget management Specific fund use Monitoring developing legislation that could drain funding structure Managing the budget closely to avoid outside temptation for one-time funding raids Be diligent with use of funds specific to the intended purpose

Summary of benefits Adjustable staffing Eliminated backlogs Modern filing system Customer satisfaction Able to adjust staffing up/down according to needs Eliminated backlogs Generated resources to build and maintain a modern filing system Customer satisfaction is at all time highs

Questions Patrick Reed Josef Gasimov Public & Government Affairs Manager, Office of the Secretary of State, Corporations and Charities Division Patrick.Reed@sos.wa.gov 360-725-0358 Josef Gasimov Deputy Superintendent of Corporations, Department of Consumer and Regulatory Affairs Josef.Gasimov@dc.gov 202-478-3285