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| CONTACT THE HERALD |
Robert Frank, City Editor
frank@heraldnet.com |
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Published: Monday, December 7, 2009
Taxes needed to close state's growing deficit?
Gov. Gregoire says cuts alone aren't enough as she prepares to announce her budget plan this week
By Jerry Cornfield Herald Writer
OLYMPIA — A year ago, a somber Gov. Chris Gregoire called for slashing hundreds of millions of dollars from education, health care and human service programs to help balance the state budget.
“I hate it,” she said of the proposal Dec. 10, 2008, adamantly avoiding taxes to help bridge the multibillion-dollar gap she faced. “There is no way to tax your way out of this problem.”
Since filling that hole, there's been another $2.6 billion puncture in the budget. Now, the second-term Democrat thinks generating money through taxes or other means is needed to patch the hole. She will reveal some of her ideas this week when she issues a proposal to rebalance the budget.
“I'm going to open the discussion. I'm going to be as specific as I can,” Gregoire said Friday evening.
She views her ideas as a starting point for what will be a robust conversation among legislators and in the public.
Gregoire “has come to the conclusion that a budget with no new revenue would be highly objectionable to her values and the values of the state,” her spokesman, Glenn Kuper, said Friday.
By law, the budget plan expected to be released Wednesday must be balanced without relying on any new revenue. Gregoire has said in the past she'll be making deep cuts in government spending and tapping reserves as she did a year ago.
She's then going to delve into methods of raising revenue. While she's been clear in the past about opposing a boost in the state's sales, property or business taxes — arguably the biggest and most controversial moneymakers — this will be the first time she's laid out what she might support.
“We're still working out the specifics of how to mitigate a portion of the objectionable cuts,” Kuper said.
What Gregoire hands out will be the template used by the Legislature as it crafts its own budget during the 2010 session that begins Jan. 11.
Lawmakers are anxious to see what she produces, knowing it will help frame the debate on taxes in the upcoming 60-day session.
“It would be nice if she gives us some direction on what she sees as a revenue package” or what she'll reject, said Sen. Steve Hobbs, D-Lake Stevens, who serves on the Senate Ways and Means Committee, which is the chamber's budget-writing panel.
Rep. Mike Sells, D- Everett, said among House Democrats, no one is particularly eager to increase taxes, nor is there any specific proposal getting pushed within the caucus at this point.
“Everything is on the table,” he said, adding that what Gregoire proposes will help Democrats who are weighing the pros and cons of most of the same options she's been considering.
Republicans contend the Legislature can get rid of the deficit without raising taxes. Democrats, who hold majorities in the House and Senate, must commit to reform how Washington runs its government, they said.
GOP leaders think it's a done deal because of increasingly loud chorus of Democrats talking about higher taxes on cigarettes and alcohol, new taxes on candy and revisiting the idea of taxing the highest wage earners in the state.
Republicans anticipate committee hearings laced with emotional pitches from lawmakers and members of interest groups on how revenue is needed to avert human disaster.
One senator recalled how last session one Democratic lawmaker said people would die if a proposed sales tax increase for health care and human service programs didn't pass. It didn't.
“How many died from not having that sales tax increase?” said Sen. Mark Schoesler, R-Ritzville, who serves on the budget committee.
While he opposes any new taxes, Schoesler said increases in some user fees might meet less resistance.
“They have to be legitimate user fees, not taxes,” he said.
Gregoire, in a televised interview last week, responded to those who assert that taxes are not needed by saying people will be surprised by the kinds of cuts needed to erase the deficit.
“When they see what I see,” she began, “they're not going to like it. They're not going to want it.”
Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com.
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COMMENTS
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What we need is real people in office. Not professional Politicians, or Lawyers.
Time for a change indeed.
Clearly for years there out of touch in what the American people want.
All the way to the White House.
Craig French | Dec 8, 2009 9:43 pm | 0 replies | Request removal
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The truth is that the general fund total spending is only $1.2 Billion less than the previous budget.
http://www.ofm.wa.gov/budget/info/0509balance.pdf
You can ingnore the claims that spending has been cut to the bone. The federal budget bailout money, plus robbing the pension fund saved the fat from the budget knife. To say there is nothing left to cut is simply a lie.
Take a look at the state budget (http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/Session%20Law%202009/1244-S.SL.pdf) and you can find lots of unnecessary commissions and services that can be cut.
Don't fall for the false claims that higher taxes are needed. They claim they are needed for get over the current budget deficit, but they will never be reduced and will contribute to even more bloated government down the road.
Just say NO!
Sick & Tired | Dec 7, 2009 2:49 pm | 2 replies | Request removal
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Hi Tim Eyman.
R N | Dec 07, 2009 9:37 pm | Request removal
If you ever meet Eyman in the public, he is a little coward. He looks like a child thats just waiting to get yelled at.
Mike Flavin | Dec 07, 2009 11:13 pm | Request removal
Of course the State must raise taxes to fill the gap. When there is a shortfall in revenues and spending remains the same or less (due to cuts), then taxes must be raised to make up the difference. At least 70% of the budget cannot be cut and the other 30% has been cut and cut and cut...
As a homeowner, I am willing to make this sacrifice during these tough economic times...It is unfortunate that these un-American right-wingers refuse to pay for anything...infrastructure, war, healthcare, education, etc; etc; Right-wingers or conservatives or Republicans or Independents or whatever they are calling themselves these days
(re-branding themselves because they cannot sell their bankrupt idealogy) think government runs on magic dust...this is why you cannot have an intelligent conversation with them, because they are not intelligent...
Anthony Vicari | Dec 7, 2009 8:23 am | 2 replies | Request removal
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MAGIC DUST !!!
Why is it that when we are all sick to death of paying more taxes some guy like Mr Vicari gets himself all bunched up and starts throwing names like a little school boy. Right wingers, magic dust, un american. All a bunch of bull! I would ask him when are we going to get some one in office gives a hoot and can balance the buget instead of raiseing taxes when they screw up. He should just take a look at how unintelligent he sounds with his child like insults,
I ask him to ask the Queen bee why she and her cohorts in crime took a large wage increse and has every state and county worker on a wage freeze???
doesent sound like she and her little band of thives want to help any body but them selves.
Rich Wynn | Dec 07, 2009 1:07 pm | Request removal
By all means, Tony, pay more than your share. The rest of rationally-minded folks thank you in advance. The state and Chrissy could use more willing volunteers like you.
Tom C | Dec 07, 2009 8:23 pm | Request removal
Fiscal Responsibility and smaller government is what we want! What did we do with the large surplus just couple years back? ....local politicians gave sizeable raises to those closest to them. Let's learn to live within our means.
California is bankrupt. Please wake up. Quit spending, invest in small business and private jobs.
Teresa Christison | Dec 7, 2009 7:42 pm | 0 replies | Request removal
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If we are so far in debt why the heck is she going to Copenhagen for this global warming convention,She is a real work of art.
J Jensen | Dec 7, 2009 6:09 pm | 0 replies | Request removal
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If we are so far in debt why the heck is she going to Copenhagen for this global warming convention,She is a real work of art
J Jensen | Dec 7, 2009 6:07 pm | 0 replies | Request removal
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I think it is funny that the state cuts a few hundred thousand dollars then still spends like nothing is wrong.
Here is the key, total budget freeze, except for law enforcement, until the budget is balanced.
Then all spending must be authorized by the voters. Obviously the State Legislature and the Governor cannot be trusted with out money.
Gregoir was right, Dino was incorrect about the deficit. He was way low.....
I say fire every elected official and replace them. We also need term limits in both State and Federal offices.
Todd Westby | Dec 7, 2009 5:38 am | 2 replies | Request removal
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If only we could sue politicians for stated verbal contracts (no new taxes)..This bimbo needs to read the constitution for our state.......Primary purpose,(pause), education...We need term limits at all levels..Ta-Ta Senators..They all live in DC..Until the american people learn to educate themselves this will never happen.The teachers in our school systems flood the minds of our children with thier political thoughts.Let's start a class action suit against Lies made by cantidates..Tim Eayman due something useful.....ATTACK
mark sherman | Dec 07, 2009 3:59 pm | Request removal
As you know, term limits in Washington State are unconstitutional, that is State Constitution.
Political beliefs start in the home as well as any other value you instill in your kids. Dont blame teachers where you failed.
Mike Flavin | Dec 07, 2009 5:19 pm | Request removal
here's some small tings to cut. Item 1, no gov car to go home in (saves gas) have them drive their own cars back and forth to work. Item 2 no out of state travel
brian pray | Dec 7, 2009 4:41 pm | 0 replies | Request removal
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The state needs to get out of the liquor business. They do a poor job of it.
Think about it. How much does it cost for a stand-alone liquor store to operate? What about the one day a week they just sit there closed?
What if the state let Safeway or Fred Meyer's sell liquor? Fewer state employee's, fewer buildings that the state is renting, increase in revenue from stores that are actually open past 7pm. Liquor sales could be made on Sunday without a huge increase in employee salaries.
This state is trying to be "just like California" in so many other ways. Why not include this in your menu of things to consider
Reggie Johnson | Dec 7, 2009 3:56 pm | 0 replies | Request removal
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"Run the state like a business" Sure, should we run it like AIG, Lehman Brothers or Enron? Get real, governments do not exist to turn a profit so trying to use that model to run one is idiotic.
Dave Smith | Dec 7, 2009 11:58 am | 1 replies | Request removal
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Read the note! I said the state should be like a SMALL business. WE are not greedy egomaniacs. The CEO of a small business knows exactly what he spending every dime on. The CEO of small business makes sure that the primary reason for being in business is taken care of first before we even think about trying to expand.
We grade our success not on the size of our salaries but on the success of our primary product.
George Schlosser | Dec 07, 2009 1:36 pm | Request removal
Bah! HumBug!
Grumpa | Dec 7, 2009 12:20 pm | 1 replies | Request removal
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Tough to have confidence in our state when they continue to spend money on items such as the $300 million dollar data center and office building in Olympia.
Brad Smedley | Dec 07, 2009 12:36 pm | Request removal
Let me give you tax & spend liberals some facts in case you don't understand the reason for your deficit.
Spend, spend,spend!!! And more SPEND! Then try to get more to SPEND by raising taxes. You raised taxes on cigarettes and alcohol hoping to tax your way out of your problem, but I would be willing to bet that the revenue on those two items alone is down. Others like us just quit smoking and cut back on alcohol purchases. So go ahead and raise those taxes. Even more will do as we did. Go ahead and tax those businesses. They'll take it elsewhere, just as so many others, including Boeing.
What did you cut back on? I still see those "it's your dollar, watch it work" signs. Hundreds of thousands of wasted dollars telling us something we already knew. Empty buildings where our small businesses used to be, gone because of the taxes, regulations, fees, the recession and the big spenders in DC.
GREAT JOB there! Thanks for nothin'.
hope floats | Dec 7, 2009 5:02 am | 2 replies | Request removal
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Let me explain something for the Republitards here- the more people that quit drinking and smoking, the less burden our health care system has to bear.
That's right- cutting those out saves money in the long run.
Nice try, troll. Next?
R N | Dec 07, 2009 6:50 am | Request removal
I don't think people quit, I think they just found a cheeper way to do it.
david kirby | Dec 07, 2009 12:16 pm | Request removal
Both the State and local governments don't have a tax problem, they have a spending problem.
Our State needs to spending our money running and expanding liquor stores. Also they should stop taking insane killers to county fairs.
Clearly, we need to vote out these career politicians, it is not working. We all need to take the time that is devoted to to reading these blogs, and make sure that we also forward these concerns directly to the State and local governments that are taxing us to death.
Demand something better, we pay for it.
Dan Smith | Dec 7, 2009 11:47 am | 0 replies | Request removal
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What's your solution oh Queenie,when the economy keeps going downhill...raise taxes again? How do you propose to keep businesses here? Jack up taxes again? Try trimming that budget. Against your religion?
K Dog | Dec 7, 2009 10:34 am | 0 replies | Request removal
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All of our elected officials need to think like small buisness owners. You only have a limited source of funds and can only afford a to provide a limited number of services. It is really pretty simple.
My business can try to expand the services it offers when times are good. But when things go south, I cannot tell my customers they have to pay more for my primary services just so I can keep some fun little minor service going. If I do, at some point I will drive my main customer base away making the entire business go away.
It is time the state looks at entire programs to just simply go away. Yes it will mean layoffs in those programs, but there will be less layoffs in the core programs (law enforcement, education, and healthcare). And those core programs will remain viable programs, not some underfunded program that is now useless.
George Schlosser | Dec 7, 2009 9:47 am | 0 replies | Request removal
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Mr Stevens is absolutely correct regarding the liquor stores and prostitution. Read Craigs list adult section for all the ads in your home town.
Another area that needs to be looked at are the churches. They own businesses control insurance companies and are sitting on some of the most valuable property in the state.
They use all the services that the taxpaying businesses do yet are exempt.
Making these "businesses pay up would go a long way to help out with the budget woes.
And by the way queen Christine, do you still have a WA State Patrol officer guarding that mutt of yours? Hmmm?
Jon Cannelo | Dec 7, 2009 8:57 am | 0 replies | Request removal
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Let them raise taxes. 2010 is an election year. Let them ram more taxes down out throats and stifle the state economy. But the voters will have the last laugh come November. Are you listening, Mr. Dunshee?
Tom C | Dec 7, 2009 8:17 am | 0 replies | Request removal
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Here we go again, the State of Washington declaring a revenue shortfall. And again, the people come up with all sorts of ideas on how to cut spending and enhance tax revenue. Two possibilities:
1. Phase out the retail stores run by the State Liquor Control Board. The state has no business owning/leasing brick and mortar liquor stores. By allowing grocery and convenience stores to sell spirits, the state divests itself of an incredible operating overhead (not to mention union wages of the WSCLB employees), but still collects the excise tax. Sounds like an initiative for Tim Eyeman.
2. Legalize, regulate, and tax prostitution. Snicker if you will, but a tax on the world's oldest profession has been more of a boon than a burden wherever it's been implemented (from the Netherlands to Nevada). Like it or not, this business is going on 24/7 within our state, so there's definitely no shortage of supply or demand.
Douglas Stevens | Dec 7, 2009 7:37 am | 0 replies | Request removal
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I think this Governor and her legion in the majority are on their way out. She has never controlled spending, balanced last years budget with federal stimulus money, and is far from responsible. Throw her out.
But unlike the previous poster, I understand that there are fiscally sound conservatives in the legislature. We need to keep them and throw out the bums.
Tim Johnson | Dec 7, 2009 7:34 am | 0 replies | Request removal
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In the last budget cycle the Governor and the Legislature created a phoney balanced budget by decreasing the increase in spending, by including a measure to pass on certain costs to the next (current) budget cycle, and by incorporating a huge one-time payment from the Federal government into it. The theory was that if they could continue the massive spending program and whine enough they could build impetus for a tax increase.
We (the taxpayers) deserve better. In economic hard times we have had to make budget adjustments. We have not been able to increase spending (like the State) in fact we have had to spend less. The Governor and the Legislature need to prepare a balanced budget based upon projected revenues and if this means making actual cuts in overal expenditures then make the cuts. They do not need to again increase spending State Departments accross the board like last year and maybe they can cut some useless boards and commissions. If they can't make cuts maybe its time we cut them.
Its time we use the ballot box to show our displeasure with this so-called "budget process".
Gene Miller | Dec 7, 2009 7:01 am | 0 replies | Request removal
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Did I hear that she is going to Copenhagen- for another photo opt??? Hey, things are tight and I am cutting back on Christmas this year, so I choose NOT to spend at this time!!!
Tony Benoit | Dec 7, 2009 6:51 am | 0 replies | Request removal
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