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 SATURDAY, MARCH 13, 2010 7:18 pm |
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Local News 
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State budget's $2 billion hole will require deep cuts Gov. Chris Gregoire must find ways to make budget cuts to meet a tax revenue shortfall expected to top $2 billion. OLYMPIA — Washington's budget hole is getting deeper, and today state leaders will find out how much.A new economic forecast due out this morning will show the recession's squeeze on consumers continues to starve the state of tax revenues and a shortfall that's been growing for months now likely tops $2 billion. Update: Click here to see the new forecast. For Gov. Chris Gregoire, the precise figure will represent the amount of red ink she must erase in her 2010 supplemental budget expected out the week of Dec. 7. By law, her spending plan must plug that gap without counting on new revenue from tax increases. That means making cuts in the current budget, a position she found herself in a year ago at this time. Except now there's even less fiscal fat to trim from. “It's not nickel-and-diming around the edges,” she said, referring to hundreds of small cuts made earlier this year. “If we have discretion to eliminate (a program) it is on the table.” She dramatized the magnitude with a PowerPoint presentation showing that even if she does the unthinkable, it won't save enough. For example, closing down Washington's penal system would save about $800 million a year, according to her budget office. Or if she proposed ending state aid to the University of Washington and Washington State University, it would free up $493 million in the fiscal year that runs from July 1, 2010 to June 30, 2011. If she also shuttered the state's 34 community and technical colleges, that would produce another $643 million in savings. “You can't close down every prison. You can't close down all mental health services. You can't close down all state-funded services. It's just not practical,” she said. To find the $2 billion, she's regularly huddling for hours with her senior staff, budget analysts and agency directors trying to figure out what to keep and what to discard. This Saturday, they'll again gather in a large conference room to pore through spreadsheets detailing savings from potential cuts. They'll also debate the effect each move might have on a person, a business or a community. While every year, a chunk of state tax dollars are untouchable, this year there are far less of them in play. Some spending is mandated by the state constitution, such as providing basic education, or is required by law, such as paying debt on bonds. Also, there is a batch of health care, human service and education programs that survive on a diet of state dollars matched by federal funds. In 2010, those federal strings are tied around even more dollars because of the recovery act. Congressional rules bar states from reducing their spending on any program for which stimulus money is received. Added up, about 70 percent of the state's general fund can't be touched in 2010 leaving the governor and lawmakers to find $2 billion in savings out of a $9.3 billion pot. Gregoire may plug some of the hole with reserves. And she may suggest transferring a few dollars from the capital budget; last year nearly $800 million got shifted in this manner. Congress is talking about pumping in more federal aid to states though it won't happen before Gregoire puts out her budget. As a result she said she's focused on making it up through cuts. That doesn't leave a lot of fiscal wiggle room for her and the Democratic-controlled Legislature in the 60-day session that begins Jan. 11. “This is going to take the legislators to spend every waking moment they're here thinking about the short term consequences, the next biennium and the long term impacts,” Gregoire said. Sen. Margarita Prentice, D-Renton, chairwoman of the Senate budget committee, said that this may be the most difficult and challenging year she's faced. On Wednesday, she said Democrats are feeling in a slightly better starting point than a year ago because they've been in close contact with the governor. “I'm not feeling as stressed because our communication is so much better,” she said. “It is going to be painful. But we'll get through it. We just have to act like grown-ups.” Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com. |
- Alcohol, marijuana cited in fatal wrong-way crash
- Told there's no buyer for pea crop, farmers adjust
- Bill passes making cell phones, texting while driving primary offense
- Suspect in boy’s death on the run
- Everett courts water-bottling company
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- Wanted: Downtown Everett renters
- Breaking news: Child murder suspect Fryberg in custody
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(53) - Everett courts water-bottling company (39)
- Alcohol, marijuana cited in fatal wrong-way crash (37)
- Wanted: Downtown Everett renters (17)
- Air Force tanker decision favoring Boeing isn’t free trade, British and French say (16)
- Monroe cell-tower plan angers neighbors (14)
- Murder suspect James Fryberg back in custody (11)
- Cut through solid-white lines and it could cost you $411 (11)
- Breaking news: Child murder suspect Fryberg in custody (10)
- Suspect in boy’s death on the run (10)
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- Archbishop Murphy girls keep vow to win
- Meadowdale boys refuse to fold, but rally falls short in 3A state opener
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- Boeing to Offer NewGen Tanker to US Air Force
- New CEO at Valley General Hospital
- Dan Koffman's ‘TopSpin' marketing astounds, inspires, motivates, produces — just for starters
- Economic forecasts for Snohomish County, Everett, Marysville offer some bright moments
- Government officials influencing home prices
- Massive EPA energy regulations meet challenge
- Washington state healthcare reforms also needed
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COMMENTS
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One of the bigger state expenses is subsidizing the state ferry system. It's about time the subsidy stopped and ferry user fees should reflect the actual cost of operating the ferry system.
If the state built a brigde or tunnel across the sound we would save millions in the long run. We have the technology now to do it.
The courts need to stop sending so many people to prison. There are many alternatives such as community treatment programs which cost considerably less than incarceration. Intead of prison use GPS bracelets to enforce house arrest sentences.
Close the state run Liquor stores and let private food stores sell all alcohol products.
Instead of bickering over budget cuts, change the reductions to an automatated reduction formula which would spread cuts first and then cut non-mandated programs, then non-mandated agencies, or consolodate some agencies reducing staff needed to operate. Close state offices Tuesdays and Thursdays.
Phil Barberg | Nov 19, 2009 12:07 pm | 0 replies | Request removal
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If Gov't mandated healthinsurance goes through, citizens will be TAXED for 4 years before any health coverage is started. This will drain $$$$$ billions out of the economy. Not only will jobs be eliminated by businesses which can not afford to pay twice for employee health coverage for 4 years, the extra expense will dramatically curtain public spending.
We have a disaster unfolding with this Progressive government, which even voting them out in 2010 might not prevent in time.
Randy Dutton | Nov 19, 2009 10:48 am | 0 replies | Request removal
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If you look at the electoral map from earlier this month, all of the idiots live in Eastern Washington and Pierce County. Somehow, we need to pass a state income tax by countering these retards at the ballot box. When corporations pay their fair share instead of soaking up all the corporate welfare, the loss of State revenue can be made up. The Federal Gov't can help by cracking down on corporations offshoring their operations in a post office box. Also, the Feds can crack down on corporations blackmailing states by threatening to leave. There should be regulations that make it impossible for a corporation to get more corporate welfare than the home state provides.
Anthony Vicari | Nov 19, 2009 10:33 am | 0 replies | Request removal
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Johhnny Rotten | Nov 19, 2009 9:59 am | 0 replies | Request removal
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Getting rid of the state operated liquor stores will not be an option to the political machine. What would all their relatives and friends do for jobs??
Prisons are the biggest problem, supporting oxygen consuming non-humans doing life sentences at the taxpayers expense. The latest example would be Zamorra in Skagit county, that is a 2.5 million dollar sentence on the taxpayers, FOR WHAT? It is wrong that a lifetime of care for someone like him is much cheaper than the death penalty with the 20 years of taxpayer paid for appeals that go along with it.
Most other countries deal with those kind of brain-dead monsters in a quicker and final manner. We need to start there. The budget would show a marked improvement quickly.
Jon Cannelo | Nov 19, 2009 8:17 am | 0 replies | Request removal
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Just some news on tax hikes....your continual tax hikes are pretty much a failure, as shown by the deficit. You've continually raised taxes in hopes of staving off the shortfall. Here's some news for you..we're sick of being speared in order to perpetuate programs and services that should have been cut or reduced. It appears I'm not the only one that decided not to buy, or reduce purchases of, those things you hoped to collect taxes from.
As usual, your first choices are the penal system etc. Letting the criminals out on the street to victimize society again.
MORONS
hope floats | Nov 19, 2009 7:17 am | 0 replies | Request removal
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The politicians are still holding back. Tomorrow they will report a deficit of 2.5 to 3 BILLION. Come next summer it mushrooms to 5 BILLION.
Queenie is already telling us what she can't cut. It is greasing the skids for try to push through a big tax hike. Perhaps push income tax again.
K Dog | Nov 19, 2009 3:15 am | 0 replies | Request removal
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Let's start by the state getting out of the retail liquor sales business. Turn it over to the existing retailers such as Costco and QFC. That would eliminate store leases and state employee salaries and benefits. The state still gets to collect liquor tax without having to pay such overhead costs.
Tom C | Nov 19, 2009 2:47 am | 0 replies | Request removal
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...to them, this should be a one-party system of government. ---Sorry, but i am not into communism or facism.
The last time we had a 10+% unemployment rate in this county, we had a Republican governor... John Spellman, who solved the problem by raising taxes over & over & over & over. So... please people, don't blame the party... blame the person.
Facts are, since Spellman, nearly all tax increases have been approved by voters, except at the local level ---in which the state has no control over. YOU DO, if you vote & get involved.
Let's wait & see what Gov Gregoire does before we start attacking her?
cme everett | Nov 19, 2009 2:04 am | 0 replies | Request removal
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The liberals never met a program or cause they didn't like; spending like drunken sailors (no offense to our armed forces, God bless) is what they are all about, and it will never change for them. Look where this state is (also California) after all these years of liberal control of the legislature. The voters of western Washington have nobody to blame but themselves. That doesn't help the situation at all, but it explains totally why we are in the financial fix before us. Just keep voting liberal and insure that your kids and your grandkids will be slaves of "the state" in perpetuity.
a johnson | Nov 19, 2009 1:25 am | 0 replies | Request removal
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