News Jan 13, 2011 at 4:00 am

A Few Things State Legislators Could Do to Fix Our State's $4.6 Billion Budget Hole, and What They'll Actually Do

Pot photo by TMPH

Comments

1
The legislators may do one of the first five: Soda Tax. And, continue their never ending fight for the rich to tax the hell out of the poor. Because, being poor means you have to pay more.
2
Lame.
1 Income Tax, there is no way to convince voters the tax will not creep down in the income brackets, nor hold steady with inflation.
That is, at 5% inflation, more and more people will make over $200K/year and be taxed. This tax base will increase itself over time by design. It will not require a vote from anyone.

2 Legalize and tax Pot.
Go ahead, make my day, month, annual budget.
IMO the money should be slated forever dedicated
to health care (i.e. Basic Health).

3 Don't build the tunnel.
I am with you on this, don't build an expensive 2 lane tunnel to replace an expensive 3 lane viaduct. But, we really only save the money we don't spend, much coming from the Fed if and only if we build it.

4 Close Tax Loopholes.
I'm all for it. The major problem being, these businesses in this economic environment are as likely to fell as to pay, unless concessions are made (the working definition of 'loopholes')

5 Soda tax, right.
Go ahead, not sure it will translate to the numbers projected, but it seems like a worthy cause...IF the money goes where it is supposed to and NOT into the general fund.

6 The way it will actually be done...it won't.
The way Olympia is working this will reach a crisis, and won't even be figured out until after that reaches a fevered pitch. Please forgive my pessimism.
3
1. Better idea: Ron Sims' plan to eliminate the state portion of the sales and property taxes, get rid of the B&O tax completely, and replace with personal and corporate income tax of ~4%. Broad-based, everyone would pay less (esp. since income tax is deductible on Federal returns), state would get more money. Crashed and burned as soon as the words "income tax" were uttered. End of discussion.

2. Excellent idea. However, still illegal under Federal law. Federal law trumps state law. End of discussion.

3. Tunnel will be built w/money from fuel tax, which is not part of the general fund. The general fund is the one with the $4.6 billion hole. State constitution sez gas tax money shall be spent on roads, period. End of discussion.

4. Close tax loopholes. Okay. Know what's exempt from sales tax in Washington besides food & medicine? Commercial airliners. At upwards of $20 mil a pop that'd bring in a lot of $$$. Also, it takes very little whining to get an exemption from the B&O tax.

5. There was a soda tax because Tim Eyman has been granted sole authority to determine what gets taxed, and how much.

6. The will of the people, as expressed through citizen initiatives, is they want Washington to be Mississippi. Or Louisiana. They get the government they deserve...
4
1. This voter will support an income tax or a sales tax, but certainly not both. And of course, any income tax would have to apply equally to every single citizen. No exemptions, no deductions.

2. Of course I support legalizing and taxing marijuana. I have a brain.

3. I absolutely do not support the tunnel. And I do prefer the surface / transit option. But, any money not spent on the viaduct replacement must be used for transportation purposes. We've got a ferry system - the State's single largest tourist attraction and something that truly symbolizes the Puget Sound - which is in dire need of funding. Not to mention the backlog of bridge maintenance, etc.

4. Closing loopholes always sounds good. I'm always for government efficiency. But really this is going to amount to a few drops in the bucket. Who in their right mind came up with an estimate of $65 billion being lost to tax loopholes? That economist should be shot. Are you telling me we could conceivably be losing as much as our entire state budget in tax loopholes? Shame on the Stranger for printing that number.

5. The soda tax is quite dead thank you. Yeah, Soda is crap food. But the Stranger has no problem espousing the benefits of cocaine, so lay off my Coca-Cola!

6. There will be enormous cuts, and they will be a long time in coming. When the State shows the voters that they can be responsible with more money, then they will get more money. But their gonna have to cut off the crap like giving drivers licenses to illegal immigrants. Policies like that border on criminality and frankly piss off the voters.
5
While most of these ideas will be written off as liberal pipe dreams, there's on that makes real sense and should be embraced by both parties in Olympia.

The option of removing unproductive subsidies and closing loopholes in the tax code could result in $6.5 billion a year in lost revenue, and should be pursued aggressively - especially by those who complain loudest about "wasteful government spending" since that's exactly what most subsidies amount to.

Some tax breaks have been on the books since the 1930s, and have long since outlived their original intent or usefulness to the public; others, such as a sales-tax-exemption on cosmetic surgery procedures, never served the public interest in the first place.

A recent Guest Editorial in the Seattle Times by Remy Trupin of the Washington State Budget & Policy Center hit the nail on the head - lawmakers should look at every state tax break and evaluate whether they are needed, and all should have regular review dates if not automatic expiration dates.

The Washington Public Interest Research Group (WashPIRG) strongly encourages legislators to take this approach during the 2011 Legislature.

Steve Breaux
WashPIRG
6
I can pretty much guarantee that anything in there that increases revenue will lead to an Eyman orgasm of PAC money solicitation.
7
“Where’s the fat in the budget?”

Ending wasteful spending at Washington State Ferries $9.6 million

Washington taxpayers are being asked to pay more than $2.5 million for a community Inviting House, Longhouse and Museum, which would primarily benefit the Suquamish Indian
tribe. Yet, the tribe’s leaders are hardly short of money. They operate the nearby highly-profitable, and tax-exempt, Clearwater Casino Resort.

Tacoma Narrows Bridge Lights $1.5 million
“It makes everything so pretty.” Tacoma activists seek public money for bridge decorations. This earmark is to provide tax-funded night-time lighting decoration for the new Tacoma Narrows Bridge.

“SayWA” Tourism Campaign $442,000

Money Stolen from the Crime Victims Fund
$431,376 Internal control weaknesses
in the Department of Labor and Industries allowed an employee over a six year period to steal $431,376 from the Crime Victims
Compensation Fund.xxix

Animal Massage Practitioners $142,000 This budget item provides funding for a program that requires persons practicing massage only on
animals to obtain a state certificate.

The Department of Agriculture was given $66,000 to conduct inspections, certifications and fee collections under the program. Yet,
Christmas has been successfully celebrated in Washington since at least 1834, without regulation, taxation or interference from
the state government.

See the following website for hundreds of other idiotic expenditures
http://www.cagw.org/assets/state-piglet-…

One of my biggest bitches is the duplication in government. Ever ask yourself, why we are paying for 5 different types of health insurance and the overhead to run all these agencies? 1. Medicare 2. Medicaid 3. Worker's Compensation 4. Veterans Healthcare 5. Private Insurance.

Since the state debt is out of control, why do we need a Washington State National Guard when we have a US Army with reserve components scattered throughout our state. As an old military officer, I support our military but cannot see justification for a state military with our budget.

I would also eliminate the state hatcheries. Why pay all that money for the Indians to net the fish at the mouth of the rivers. Let the Indians pay for the hatcheries. Better yet put a stop to their netting and tax the casinos.

Some times being politically correct means that someone what to shove BS down your throat. As you can see common sense is not always politically correct.
8
“Where’s the fat in the budget?”

Ending wasteful spending at Washington State Ferries $9.6 million

Washington taxpayers are being asked to pay more than $2.5 million for a community Inviting House, Longhouse and Museum, which would primarily benefit the Suquamish Indian
tribe. Yet, the tribe’s leaders are hardly short of money. They operate the nearby highly-profitable, and tax-exempt, Clearwater Casino Resort.

Tacoma Narrows Bridge Lights $1.5 million
“It makes everything so pretty.” Tacoma activists seek public money for bridge decorations. This earmark is to provide tax-funded night-time lighting decoration for the new Tacoma Narrows Bridge.

“SayWA” Tourism Campaign $442,000

Money Stolen from the Crime Victims Fund
$431,376 Internal control weaknesses
in the Department of Labor and Industries allowed an employee over a six year period to steal $431,376 from the Crime Victims
Compensation Fund.xxix

Animal Massage Practitioners $142,000 This budget item provides funding for a program that requires persons practicing massage only on
animals to obtain a state certificate.

The Department of Agriculture was given $66,000 to conduct inspections, certifications and fee collections under the program. Yet,
Christmas has been successfully celebrated in Washington since at least 1834, without regulation, taxation or interference from
the state government.

See the following website for hundreds of other idiotic expenditures
http://www.cagw.org/assets/state-piglet-…

One of my biggest bitches is the duplication in government. Ever ask yourself, why we are paying for 5 different types of health insurance and the overhead to run all these agencies? 1. Medicare 2. Medicaid 3. Worker's Compensation 4. Veterans Healthcare 5. Private Insurance.

Since the state debt is out of control, why do we need a Washington State National Guard when we have a US Army with reserve components scattered throughout our state. As an old military officer, I support our military but cannot see justification for a state military with our budget.

I would also eliminate the state hatcheries. Why pay all that money for the Indians to net the fish at the mouth of the rivers. Let the Indians pay for the hatcheries. Better yet put a stop to their netting and tax the casinos.

Some times being politically correct means that someone what to shove BS down your throat. As you can see common sense is not always politically correct.
9
Pass a constitutional amendment - really? And please- let's stop treating people who make $200K a year as wealthy in 2011. IF you changed that number to $300k I might sign on.
10
I like 1 to 4 - actually, I like 5 too, but am concerned that Money is Speech in Soviet Amerika, according to the Supreme Politburo of Judges and High Lords.
11
I've been out of the state for a bit... raising taxes now requires the same number of votes as constitutional amendments? If that's correct then probably nothing will happen for a while until things get desperate. (It'll take a miracle or catastrophe? we like catastrophes!) But I hope that this would then embolden legislators to do some amending (e.g. the allocation of the gas tax) along with raising taxes when the time comes. For me this means that gas tax is only the tip of the iceberg for what could be changed.

And I know that most of our legislators have been anything but bold, but who knows, if times are changing, maybe we'll see some change....
12
Eli,
you are proposing that we tax... moss?
13
@9 I consider people who make $100k a year as wealthy :P

Some of these ideas I like; others I don't. But it doesn't matter - only one is going to be used, and we all know which one.

I feel bad for the poor in these times. Well, I guess I *am* poor, but considering that the U.S. Army pays for my food, housing, and medical expenses, I can't really compare.
14
Excellent comment by Blue Dog - Patroit @7. And yet another excellent comment by Blue Dog - Patroit @8, although it is very similar to the one @7.

First, I can't think of a better way to close a $4.6 billion budget hole than by identifying about $15 million in waste, fraud, and abuse. There's only another $4,585,000,000 to go. Maybe we can do away with earmarks while we're at it.

Second, I totally agree that there are too many types of health insurance. I think the governor should send a letter to Obama and Boehner and Harry Reid saying, "The state of Washington demands that you, the federal government, consolidate the federal health insurance system by the time our state legislative session closes." Maybe we can hold their feet to the fire by threatening to secede.

Third, I think it's high time that we started taxing the Native American tribes' casinos. Why stop there though? I would pore over all the treaties the state has signed with the Indian tribes and see if there's any money to be made by abandoning them. God knows this country didn't became great by honoring treaties with Indians.

Anyway, way to stick it to those politically correct elitists. Way to finally make clear the difference between BS and common sense. Before you came along, I don't think I really understood this distinction.

P.S. I do have to ask, what's a "Patroit"?

P.P.S. Just to make sure I'm not crazy, but you did mean all this seriously, right?
15
@14 - Right on. Loved it.

@9 - I'm a college-educated teacher working for a non-profit.. I make 15k a year. Someone making more than 12x my income is definitely wealthy. And let's not forget those are combined incomes for married couples. So if I married someone who made 385k a year, together we'd still be untouched by a high-earners income tax. (If only....swoon.)
16
Dear Cressona,

I did mean off of what is said in #7 and #8. Don't know why it was came up twice. Thought there was only one post.

As far as being serious about #7 and #8 the answer is yes. You might be interested to know that I am filing two initiatives this month.

One is to eliminate the RCW's that pertain to the recall of elected officials. Bottom line is that we return to the State Constitution. Get enough signatures on a petition and have an election to recall the elected criminals. Time to make elected officials accountable to the citzens of our state rather than special interest groups. Not to say that there are not some very worth while Special Interest Groups, but I am tired of seeing a few rich bastards screw the rest of the population.

The argument begins with Mr. Michael L. Cohen, Recall in Washington: A Time for Reform Washington Law Review Vol.50.29, 1974. In part, he states:

A SHORT HISTORY
From 1912 through 1984, Washington residents had gradually emboldened themselves to remove their elected officers at will, even for disagreements on issues of public policy. Elected officials, especially Mayors and members of City Councils, had been the principle targets of recalls - as they are now - charged from using poor judgment to being incompetent yet, under the law, neither a recallable offense. In 1984, in its attempt to reestablish the provision of the Constitution, the Washington State legislature revised the language of the statute. They wanted to reassure elected officials they could be removed "for cause" only – and, only if the charge could be shown to be an act or acts of misfeasance, malfeasance or a violation of the oath of office. The 1984 amendment, however, was written so broadly that the legislature essentially allowed the court to extend its jurisdiction over the issue of recalls over and beyond the authority that had originally been delegated to it by the Constitution.

PROBLEM
In today’s environment, an elected officer can excuse an improper or unlawful act by simply declaring the act was conducted in the public interest and performed "honestly, faithfully, and to the best of one’s ability". This broad language has legitimized unlawful, unethical, and improper conduct by elected officials. The second initiative is to allow individuals to collect signatures for petitions on line. If we can register to vote on line, why not make it possible to gather signatures for initiatives on line. This will be a major step in returning government to the control of the people.
17
The second initiative will be to allow citizens to sign petitions on line. If we can register to vote on line, it only makes sense that we can sign petitions on line. This will make the initiative process easier, more affordable, and an environmentally friendly to conduct government. It will also be a major step in returning control of government to the people. Think of the initiatives that would have made it on the ballot this past election if this were in place.

Blue Dog is a conservative democrat. Patriot is my personal touch that I add because of my background as a citizen and veteran.
18
Blue Dog - Patroit @17: The second initiative will be to allow citizens to sign petitions on line.

Brilliant idea. And I would follow this with an initiative forbidding the state from spending our hard-earned tax dollars implementing a system of online initiative gathering and verification. Honestly, I just don't trust the public sector to pull something like this off.

More @17: Patriot is my personal touch that I add because of my background as a citizen and veteran.

Yes, I know what a patriot is. I'm just wondering what a "patroit" is. I'd also be curious how it's pronounced--like "Detroit" or in a more French-ified way?

Anyway, thanks for your service to our country.
19
A way to tax only the wealthiest in a way that will always tax only the wealthiest is to not put a specific dollar amount on it. You say whoever makes 1,000X the poverty rate, or something like that.
20
how about cut spending to levels of even last year?

Why are there puppet show coordinators for state parks?

Why are there bronze statues of salmon on freeways (shouldn't we be looking at the road and not other things)?

the state has not cut 'to the bone' we do not need much of what is done in Olympia.
21
The tunnel will be built. Yay. What is wasteful in some people's eyes is a good investment in other's. Debates about taxing and the vital operations of government will never end.
22
Only spend tax revenues in the counties that produce tax revenues. Let the shitty rural counties that vote for shitty Eyeman initiatives live with their principles.(and without roads, schools, parks, healthcare, other services)
23
Remember, the budget has increased 15-30% every 2 years under The Queen's Rule and THIS 'draconian' budget is BIGGER THAN THE LAST ONE.

Sorry to throw the wet blanket of facts on your little liberalfest here.
24
I agree with legalizing and taxing pot. The rest is the usual meh. You could have added legalizing casino gambling and taxing the shit out of that.

Right now, we play at the edges of the gambling bonanza with lotteries, card rooms, pull tabs etc., and hand the big prize to tribes.

So essentially, we're saying casinos are OK, but only under the monolopy control of the tribes. We negotiate "compacts" that do little for the greater good.

So yes, casinos on every corner. We love taxing "sin."
25
Orino @3:

"1. Better idea: Ron Sims' plan to eliminate the state portion of the sales and property taxes, get rid of the B&O tax completely, and replace with personal and corporate income tax of ~4%. Broad-based, everyone would pay less (esp. since income tax is deductible on Federal returns), state would get more money. Crashed and burned as soon as the words "income tax" were uttered. End of discussion."

Damn right. Put this on the ballot.
26
I just came back from Lobby Day in Olympia with my Union members and all I got was this lousy tee shirt. We got blamed for all the anti-tax initiatives passed last fall, told that the voters have spoken and asked where we wanted the cuts to begin. My senator, Adam Kline, said his hands were tied by Tim Eyeman's 2/3 majority approval of tax increases (that includes closing corporate loopholes) and he doesn't have the votes. He really couldn't be happier to have an excuse to tell his constituents why nothing was going to change in Olympia this year.

We met with Sen Eide who repeated the mantra and begged us to start filing initiatives to get on the next ballot. Basically reps in Oly said "make me" when we asked them to find ways to raise taxes. They are terrified of the anti-tax republicans who have taken over and pissed at the voting public for cutting revenue. The response is to cut where it hurts the most to teach us a lessen.
Crisis management is what these people do best, not planing ahead. If we want to get their attention we have to scare them into it, not talk them into it with reason and sound logic. I like washpirgs suggestions and bluedog patriots ideas, I don't think they are going to be taken seriously without the torch and pitchfork mob to back them up. I meet some really good lobbyists in Olympia yesterday, people who know the players and the issues, I just don't think we are going to think our way out of this one.
27
Ok article, nice to see someone in the press thinking about ways to tax.

#1. Ask Oregon how well that is working. Linkies here:
misunderstoodfinance.blogspot.com/2010/1…
theerant.yuku.com/.../t/Oregon-s-vanishi…
digg.com/news/politics/oregon_tax_hike_g…
taxprof.typepad.com/taxprof_blog/2010/12…

I moved up from Oregon, I love Oregon. Sales tax is so much fairer than income tax.

#2. Legalize, tax, educate, and treat. Everything, it is about personal responsibility.

#3. If they have to build the thing, which I have some doubts about, start by moving the seawall out, it has to be replaced any ways. That will widen the corridor, than you can do a below grade cut, with lids that can serve as parks or intersections.

But the Alaskan Way, and 520 projects should wait until the money is in hand.

#4. Cut all exemptions. Require non-profits to pay a flat rate even.

#5. Don't be a dumb ass, I already pay a hefty tax on the rum.

#6. The only thing that will come out of Olympia will be a repack of whatever they have thrown at us already.
28
Legalize pot and tax it. But those pesky Feds trump state authority. This is NOT how it's supposed to be, at least not according to the Constitution. The Federal Government originally was to handle foreign affairs and disputes between states. We could fix a whole bevy of problems if we could just get the Feds out of our business!!!
29
I was in Legislative Office Modular D yesterday. There was a basket of candy next to the water cooler with a small sign. "This candy purchased on 11/24/2010 -Candy tax happily paid."


30
Tax the rich.Now.Simply implement a progressive state income tax.The state legislature could do it today.But they won't.Because they are beholden to the rich.Don't vote for them;they don't love you.They could also - today - close all the rich-first tax loopholes.They could ban Corporate Welfare.This week.But they won't.Because they're not socialists.They're evil.

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