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.

Eli Sanders was The Stranger's associate editor. His book, "While the City Slept," was a finalist for the Washington State Book Award and the Dayton Literary Peace Prize. He once did this and once won...

16 replies on “The State of the State: Most Difficult”

  1. 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.

  4. 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.

  5. 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.

  6. “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.

  7. 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”

  8. 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?

  10. 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?

  12. @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)

Comments are closed.