Responsible leadership, we’re relieved to say, seems to have prevailed as state lawmakers return to Olympia this week to adopt a budget for the 2003-05 biennium.
Agreement was reached over the weekend on a two-year spending plan that closes a $2.6 billion gap without a general tax increase, but makes serious cuts in human services and leaves most state workers without a pay raise. It’s hard medicine to swallow, but it’s the right prescription for a state economy suffering the effects of a stubborn recession and high unemployment. Raising taxes broadly risked dampening economic activity and lowering overall state revenues even further.
A robust economy is the best way to maximize the state’s ability to take care of its top priorities and protect its most vulnerable citizens. Trying to tax our way out of a financial hole, no matter how well-meaning, would be a futile exercise.
Credit goes to Gov. Gary Locke for setting the proper tone for this session. The Democratic governor showed strong leadership by calling for a no-new-taxes budget that forced state government to live within its means. He showed courage by making a particularly tough call — proposing that two education initiatives that came without new funding sources be suspended until revenues improve. This angered one of Locke’s key constituencies, the state teachers union, which last week vowed not to support Locke if he decides to run for a third term next year. Despite the political risk, Locke focused on the greater good, which had the happy consequence of engendering greater cooperation between leaders of both parties and making a reasonable budget possible.
Chief legislative budget writers, Sen. Dino Rossi (R-Sammamish) and Rep. Helen Sommers (D-Seattle) deserve credit for keeping negotiations during the special session on track and for remaining open to realistic compromises. House Democrats now must follow through and ensure that Speaker Frank Chopp doesn’t single-handedly derail this sensible compromise.
Adopting a balanced budget may be the Legislature’s biggest job, but more heavy lifting remains before lawmakers adjourn next week. Most important is making progress on reforming the state’s costly unemployment insurance system. Lower costs should be considered a crucial piece of the proposal the state will make later this month to the Boeing Co. regarding assembly of the 7E7 jetliner. Negotiators for business and labor interests are working on this issue, and Boeing machinists are among those supporting strong reforms to keep good jobs here. Whether those talks succeed or fail, lawmakers need to stand ready to adopt serious reforms.
That will be another victory for leadership.
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