Published: Sunday, February 26, 2012
In our view / State budget
Senators can force reforms
Fiscal hawks can't look at the supplemental budget released last week by House Democrats in Olympia without cringing. The chief reason: Even though it makes another round of deep spending cuts, it kicks $405 million in spending into the next budget cycle, in effect borrowing from tomorrow to cover today's expenses.
This isn't a final budget, of course. The more conservative Senate is up next; its opening bid to close a gap of about $500 million -- and leave up to that much in reserves -- is expected early this week. Both chambers, and the governor, must agree on a final deal before the Legislature can adjourn. That's supposed to happen by March 8.
It remains to be seen whether the Senate will adopt the House's scheme to delay $405 million payments to school districts from June to July next year, after the start of the new biennium. But here's a scenario we think could legitimately be called a success:
Moderate Democrats in the Senate, who hold ample leverage if they team up with minority Republicans, agree to the delayed payments, but only in exchange for significant budget reforms that move the state away from chronic deficits.
Among them are a host of state pension reforms; delays in some stormwater regulations; changing state debt policy to force less borrowing in good times and offer greater capacity in tough times; and repeal of two huge unfunded mandates that aren't part of basic education -- initiatives 728 and 732.
Pushing a $405 million liability into the next budget is risky, to be sure. It banks on the hope that revenues will continue their recent rebound. Even then, it gives the next Legislature less money to work with. In truth, it's an act of desperation by lawmakers convinced that further cuts to social services, education and corrections will end up costing the state more in the long run by creating even more problems.
Their point isn't without merit. A recent state Supreme Court decision essentially took further cuts to K-12 education off the table. Lopping another $405 million from higher education and social services, when tuition already has skyrocketed and the need for services is so acute, would indeed do more damage than good.
Members of the Senate's moderate Democrats -- the "Roadkill Caucus" -- say they're determined to hold out for reforms they think will bend the state's cost curve downward.
If they hold together, they have the votes to pull it off. They can force a budget compromise that makes the best of a difficult situation today, and forges a more sustainable tomorrow.
This isn't a final budget, of course. The more conservative Senate is up next; its opening bid to close a gap of about $500 million -- and leave up to that much in reserves -- is expected early this week. Both chambers, and the governor, must agree on a final deal before the Legislature can adjourn. That's supposed to happen by March 8.
It remains to be seen whether the Senate will adopt the House's scheme to delay $405 million payments to school districts from June to July next year, after the start of the new biennium. But here's a scenario we think could legitimately be called a success:
Moderate Democrats in the Senate, who hold ample leverage if they team up with minority Republicans, agree to the delayed payments, but only in exchange for significant budget reforms that move the state away from chronic deficits.
Among them are a host of state pension reforms; delays in some stormwater regulations; changing state debt policy to force less borrowing in good times and offer greater capacity in tough times; and repeal of two huge unfunded mandates that aren't part of basic education -- initiatives 728 and 732.
Pushing a $405 million liability into the next budget is risky, to be sure. It banks on the hope that revenues will continue their recent rebound. Even then, it gives the next Legislature less money to work with. In truth, it's an act of desperation by lawmakers convinced that further cuts to social services, education and corrections will end up costing the state more in the long run by creating even more problems.
Their point isn't without merit. A recent state Supreme Court decision essentially took further cuts to K-12 education off the table. Lopping another $405 million from higher education and social services, when tuition already has skyrocketed and the need for services is so acute, would indeed do more damage than good.
Members of the Senate's moderate Democrats -- the "Roadkill Caucus" -- say they're determined to hold out for reforms they think will bend the state's cost curve downward.
If they hold together, they have the votes to pull it off. They can force a budget compromise that makes the best of a difficult situation today, and forges a more sustainable tomorrow.
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