Swelling budget deficit looms over lawmakers

  • By Kurt Batdorf SCBJ Editor
  • Tuesday, November 23, 2010 1:59pm
  • Business

MUKILTEO — Four incoming state legislators know they’ll have their hands full dealing with a mounting state budget deficit, but they pledged to give business interests their full due.

The Joint Government Affairs Committee of the South Snohomish County Chamber of Commerce, the Everett Area Chamber of Commerce and the Snohomish County Economic Development Council had 10th District Reps. Barbara Bailey and Norma Smith, 38th District Sen.-elect Nick Harper and 32nd District Rep.-elect Cindy Ryu address chamber members, local lawmakers and small-business owners Nov. 17 about the state of the budget at the Future of Flight at Paine Field.

They’ll face a difficult task. The state’s latest budget estimates released Nov. 18 peg the deficit at $5.7 billion. Furthermore, lawmakers won’t be able to enact new taxes or raise fees without a two-thirds majority vote because of voters’ approval of Initiative 1053.

Todd Morrow, government affairs analyst with Community Transit, moderated the forum and asked each lawmaker to address a specific topic.

Ryu, a Democrat, is the first Korean-American female mayor in the U.S. She was elected to office in 2008 after winning a term on the Shoreline City Council on her second run.

When asked how she’ll use her experience to set legislative policy agendas, Ryu said she’ll rely on her interest in transportation issues and foreign trade when the Legislature convenes Jan. 5.

Harper, a Democrat, was asked to share his thoughts on the current budget crisis.

It will force state government to revamp how it delivers services, he said.

“Folks clearly don’t want to pay more taxes,” Harper said, noting the failure of two tax measures he supported, Referendum 52 and Initiative 1098. “They want more efficiency in government services.”

Calling the current economy a “game changer,” Harper said the government must change its ways and innovate. Lawmakers will need to help state agencies find ways to deliver services fairly and effectively.

But considering the magnitude of the deficit and the cuts necessary to balance the budget without raising taxes, “There are going to be casualties after this session,” Harper said.

Despite the gloom, Harper said he wants to use his time in the Senate to create opportunities with businesses and will look to his 146 legislative colleagues for guidance in his first term.

Bailey, the veteran Oak Harbor Republican, spoke about the need for small businesses to get more access to bank loans, but noted that most solutions rest with the Federal Deposit Insurance Corp.

What the business community really needs in order to boost the economy is a measure of certainty and predictability, which is lacking at the state and federal level, especially when the federal health care effort is factored in to the equation.

“We have to bring certainty back to the business community to help us out of this recession,” Bailey said. “Jobs and the economy will help us do that.”

Bailey also said she’s working with Smith on a bill that would “smooth out” the anticipated 40 percent increase in workers compensation insurance over several years.

As for the coming budget negotiations, Bailey said, “Nick (Harper) is right. Voters gave a mandate for the state to live within its means.”

Smith addressed whether state performance audits are a good use of resources in a time of deficits.

“I think they are worth the time,” the Freeland Republican said.

The Legislature “backfilled” the 2009 deficit with many unsustainable one-time practices, Smith said. Now there’s fresh impetus to resume audits, approved by voters with Initiative 900 in 2005, to make state government more efficient.

She said the performance audits should answer three questions:

•Does the rule or regulation create certainty for businesses?

•Does it protect areas where Washington state has a competitive advantage?

•Does it help or improve areas where Washington is at a disadvantage compared to other states?

“I want to use the three points as a structure to focus on growing Washington state jobs,” Smith said. “We have the opportunity to lead the nation’s recovery.”

Rep.-elect Luis Moscoso, a 1st District Democrat, canceled his appearance at the forum because of illness.

Kurt Batdorf: 425-339-3102; kbatdorf@scbj.com.

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