Facing a second consecutive year of huge budget cuts and — as opposed to last session — the likelihood of at least some tax increases, state lawmakers should welcome any and all credible ideas for saving money.
Then act on them.
“Opportunities for Washington,” a report issued Thursday by state Auditor Brian Sonntag, includes a number of real (if relatively modest in the face of a $2.6 billion shortfall) ideas lawmakers and the governor should embrace.
For example:
n “Washington likely could increase revenue by several million dollars and bring unregistered businesses into the state tax system by conducting an amnesty program to collect delinquent debts.”
n Revenue from liquor sales and distribution could rise by up to $350 million over five years starting in 2012, the report says, if the state sold its distribution center and auctioned licenses for private businesses to sell booze.
n A successful program that audits Medicaid overpayments to pharmacies could be expanded.
The report also questions whether printing services, on which the state now loses money, are really a core function of government. (Compared to, say, education, public safety and recreation opportunities, we’d say no. Farm it out.)
It also sets the stage for future rounds of performance audits, mandated by voters in 2005 when they approved Initiative 900. The auditor’s office assessed the potential for improved efficiency and results in 38 agencies, which combined account for more than two-thirds of the state budget. In deciding which agencies will undergo thorough performance audits next, Sonntag’s office will consider the potential for reducing or eliminating services, or transferring services to the private sector. Overlaps and gaps in services will also be examined.
Major cost savings probably won’t result immediately, the report warns, because recent budget cuts have been extensive. Longer term, however, millions can be saved by continuously improving efficiency and moving some services to the private sector.
The current biennial budget faces a $2.6 billion shortfall, and even after that’s closed, another big deficit is projected for the next budget. The Auditor’s Office has a long record of smart, credible, actionable findings, and lawmakers can’t afford to ignore or reject them outright. Some ideas may require waiting to negotiate new collective bargaining contracts with state employees, but where immediate action can be taken to streamline the way government does business, it should be.
Short-term efficiencies won’t fill a $2.6 billion budget hole. But given the dire decisions that loom, every dollar will help. Acting on Sonntag’s recommendations should be the Legislature’s default position.
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