Slog

News & Arts

Line Out

Music & the City
at Night

« Hilton Als Takes on Nature Theater… | Good Move, Google »

Tuesday, January 12, 2010

Olympia The State of the State: Most Difficult

Posted by Eli Sanders on Tue, Jan 12, 2010 at 3:06 PM

No surprise, Governor Christine Gregoire told lawmakers in Olympia today that Washington State is facing "one of the most difficult chapters in its history."

The biggest problem is the $2.6 billion budget shortfall.

To deal with it, Gregoire is proposing $1 billion in cuts, including doing away with 73 state boards and commissions while also closing or reducing the size of 10 state institutions: five correctional facilities, two residential centers, and three juvenile institutions.

The last time the state closed an institution was in the 1970s. Now is the time—this session—for us to demonstrate, as difficult as it is, that Washington state government makes good business decisions, not political ones.

In her "State of the State" speech she continued to denigrate the balanced, all-cuts budget that she put forward (as required by law) in December.

The December budget was balanced, but it would force us to abandon the values that define this state: fairness and compassion.

Now, in order to avoid eliminating hospice care and taking health care away from needy children and slashing funding for early-learning programs, the governor is proposing $750 million in "new revenue" (aka new taxes and help from the federal government) along with the $1 billion in cuts.

She explained:

Like you, I do not want taxes to harm the economic recovery of our families or our businesses.

But I also cannot abandon my values, eliminate the safety net for our most needy and cripple our economic future.

Let me be clear. We cannot just cut or just tax our way out of this immediate budget shortfall. We must have a responsible, balanced approach of painful cuts and new revenue.

What, exactly, will that look like?

"Later today," she said in her speech, "I will present a budget I can support."

UDPATE: Several of you have pointed out, quite correctly, that the math in the governor's speech does not add up: $1 billion in cuts + $750 million in revenue increases ≠ $2.6 billion.

What's missing, news intern Jon Brock tells me after a quick consultation with Gregoire's office, is about $850 million in proposed "fund transfers"—that is, money shifted from cash reserves and programs that don't immediately need it into programs that are facing cuts.

So, $1 billion in cuts + $750 in revenue increases + $850 million in transfers = $2.6 billion.

Comments (17) RSS

Oldest First Unregistered On Registered On Add a comment

Just when it seemed like corporations were done laying people off, now the states start. It will be a while before this recession is over.

Posted by Free Lunch on January 12, 2010 at 3:16 PM

WE'RE SELLING EASTERN WASHINGTON!!!!!

Posted by Cato the Younger Younger on January 12, 2010 at 3:17 PM

$1B + $750M != $2.6B

Posted by David Wright on January 12, 2010 at 3:21 PM

If we were just Sensible Washington, state revenues would go up and expenses would go down.

Now, add a sunset provision for all corporate tax exemptions so that each one is a line item Yes/No vote of the people and institute (as our constitution permits) a basic Income Tax on Millionaires with no exemptions and we got no problems.

Posted by Will in Seattle

on January 12, 2010 at 3:24 PM

Please feel free to send Olympia any extra change you have laying around. Consider an early tax increase.

Posted by Sargon Bighorn on January 12, 2010 at 3:40 PM

While we're at it fix our tax structure so it's not the most regressive one in the nation. For all the compassion and making sure to take care of the needy Gregoire talks about lowering the sales tax and instituting an income tax would go a long way.

But that won't happen because her approval ratings are shit and she's a bad governor.

Posted by dotSpec

on January 12, 2010 at 3:45 PM

"Like you, I do not want taxes to harm the economic recovery of our families or our businesses."

Who is she kidding? This is Washington State.

Posted by SmallBusiness on January 12, 2010 at 3:46 PM

A public uprising has been calling for $100K salary caps on all government workers.

This would solve the crises and let more people get government jobs at reasonable wages to serve the people.

Write your state rep saying "Bust a $100K Cap on 'em"

Posted by Bust A Cap on January 12, 2010 at 3:48 PM

The text of the speech says there are $1.7 billion in cuts, which still doesn't quite add up but almost does. Then again, it's hard to tell when she's talking about this year and when she's talking about the biennium.

Anyone know the real numbers?

Posted by Cascadian on January 12, 2010 at 3:54 PM

$2.6b, that's it? Shit, that'd be god-send down here in California.

Posted by The Amazing Jim

on January 12, 2010 at 4:33 PM

the values that define this state are NOT fairness and compassion. if it were, we wouldn't have private property on nearly every inch of waterfront or streets lined with homeless and the mentally ill.

@6: i believe a state income tax is unconstitutional in this paradise of fairness and compassion. Will?

Posted by Max Solomon on January 12, 2010 at 5:31 PM

@2 for the damned-but-I-wish-it-were-so win.

Posted by Will in Seattle

on January 12, 2010 at 5:40 PM

@11 - no, our state constitution permits a flat one percent income tax with one basic exemption. Not requiring a vote of the people, only a majority of both House and Senate. Problem is, they're gutless.

More than that and you need a constitutional amendment, which does require a vote of the people.

(IANAL, but I know more than most of the lawyers that pretend they are)

Posted by Will in Seattle

on January 12, 2010 at 5:42 PM

your Bankrupt Liberal Welfare State is collapsing

prepare for worse

Posted by End of Days on January 12, 2010 at 5:56 PM

would you have a cite for the 1% income tax limit?

Posted by ?willy? on January 12, 2010 at 6:39 PM