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December 9, 2009
Gregoire: Tax hikes needed to save programs
OLYMPIA — Making her case for tax increases, Gov. Chris Gregoire on Wednesday presented a bleak plan to balance the state budget by wiping out spending for health care, welfare and education programs — but vowed to restore that money in January.
As required by law, Gregoire presented a plan for balancing the state’s $2.6 billion budget deficit using only the state’s existing tax streams.
But in an open letter to Washingtonians, the second-term Democrat also said she can’t let those deep spending cuts stand. She plans to roll out a second budget proposal early next year when state lawmakers start balancing the books.
That second budget still will cut spending by about $1 billion, she said, but also will propose additional revenue to rescue about $700 million worth of programs from the chopping block. The balance would come from reserves and other one-time sources.
Programs likely to be restored in her second budget included:
• The Basic Health Plan, which provides subsidized health coverage to about 65,000 low income Washingtonians.
• General Assistance, a state welfare program for disabled people who can’t work or qualify for federal disability payments.
• Levy equalization, a system that gives money to school districts with a lower-than-average base of property taxes.
While Gregoire did not propose a specific way to finance those programs, she didn’t rule out an increase to the state’s 6.5 percent sales tax.
“These important and integral services do not come free,” Gregoire said. “No one likes to pay more taxes. And no one likes to raise more taxes, no matter the state of the economy.”
The decision to seek tax increases was not a surprise. Gregoire spoke repeatedly in recent weeks about her unwillingness to run with an all-cuts budget. But the move carries some political risks for the Legislature’s Democratic majority going into an election year.
Raising taxes would require changes to Initiative 960, the voter-approved tax-limiting measure passed in 2007. That initiative effectively kept a lid on any tax plans during the last legislative session, but a two-year ban on amending its terms expires this month.
After that, the Legislature can amend the initiative with a simple majority vote. Democrats have enough votes to take that step on their own, although threats to a rural-serving program like levy equalization could attract some Republican support.
“We would have to amend 960 immediately and the governor sign it before we could go ahead,” said Senate Ways and Means Chairwoman Margarita Prentice, D-Renton.
Republican lawmakers, however, said Democrats were reaching for revenue too quickly. They suggested alternatives that also would save or raise money, including reductions of state management staff and privatization of the state monopoly on liquor sales.
“In essence, the governor is saying that state government won’t live within its means even though the economy is forcing families and businesses to live within their much-reduced means,” said Rep. Ed Orcutt, R-Kalama.
Gregoire also announced Wednesday that she was closing all or part of several state institutions to save at least $70 million.
Ahtanum View, Larch and Pine Lodge prisons will be closed, as will one wing at the state penitentiary in Walla Walla. Parts of the juvenile institutions at Naselle Youth Camp, Maple Lane School and Green Hill School also will be closed.
Also shuddered would be two facilities for the developmentally disabled: the Frances Haddon Morgan Center in Bremerton and Rainier School in Buckley.
“The actions combined will result in millions in savings for state government now, and even more in the future,” Gregoire said.
© Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Wash. lawmakers’ ‘short session’ will be dominated by budget 
snoozngrub on December 09 at 9:26 a.m.
Mabye instead of increasing taxes she should account for the money thats already been taken by the state tax man. If your going to cut spending cut it from the well to do. Not from the ones you always take it from. The Poor. I Realaze that the rich live in a different world then us poor but if you keep destroying us there will be no one left for Her and the rich to take from.
lordstorm on December 09 at 9:28 a.m.
I have a novel Idea. Maybe those in charge should take a pay cut. We hear about cutting back but I have yet to see their wages go down.
Dazzeetrader11 on December 09 at 9:45 a.m.
Snoooz…”us poor”? Poor dear… Gregoire stole the first election and now she’s trying to steal more from the Wash St citizens to cover her gross mismanagement. This woman never saw a penny she didn’t try to spend on some group that might vote for her.
Disabled persons need a hand up. No Doubt. Trouble is that they and “us poor” folks have already been sent enough money and programs to choke a horse. It’s getting to be time that somebody in Washington St woke up to one issue: The state’s infrastructure is crumbling due to spending….or thievery like the Gov has been doing. Fiscal conservatives…where are you?? The state wasn’t designed to support consumers in programs encouraging handouts whether it’s food, educational, etc. That type of program is simply nonsustainable. If you doubt it, Ask Gregoire…she knows.
misjustice on December 09 at 9:46 a.m.
Didn’t our ancestor’s leave England because of the taxes imposed on them? We must cut our spending because of the economy but big government just dips deeper into the pockets of the public instead of cutting costs.
Police, fire, city & county employees have taken pay cuts to keep their jobs yet I read where the federal government workers & those in unions will get their 3.5% pay increase. Something just isn’t right.
Get rid of Gregoire! Stop her manic spending & help those already on fixed incomes (or no incomes). You can’t get blood from a turnip & you won’t get tax money from those unemployed. Raising taxes at this time is unconscionableness! Things need to change!!!
Megan_B on December 09 at 10:37 a.m.
Gregoire knows that raising taxes, or even mentioning it, is political suicide. We live in a selfish word where no one wants to lend a helping hand, but plenty of people demand things for free. We wouldn’t need the government to create and implement these programs if we were willing to come together as a community and help out our fellow man. The problem is, we won’t. We’ll simply continue to beg for free handouts, and, continue not wanting to do our fair share to keep getting them.
greyhound2 on December 09 at 10:43 a.m.
Gee, when it comes to getting $750 billion for the banks, or $250 billion for Afganistan, that process only takes about a week.
When it comes to health care, a 75 year old debate in earnest for the past year with no resolution in sight yet, or education and other programs that actually benefit the American people, those debates go on and on forever.
Raising taxes is a knee-jerk response but increasing efficiency through consolidation, cutting unnecessary expenses and waste and putting a lid on public servant salaries never seems to make it to the surface.
force_vector on December 09 at 11:04 a.m.
I hate to say this, but many of these buget issues are made worse by the system we have created. Politicians know that in order to get elected, they have to give handouts to those who are poor. Why? Because there are more “poor” people than “rich” people. But, the poor don’t pay taxes. In fact, they usually get refunds in addition to the handouts. Our system is unsustainable because there are not enough contributors and the “takers” only want more and more. The only way out of this mess is for everyone to make due with less, try a little harder to do for one’s self and only seek gov’t assistance if it is truly needed. Remember, even the poorest of us are better off than most people in the world. Perhaps that perspective will allow the fat trimming process that must happen, do so with less anxiety. Then we can focus the State resources on things that matter most to the health of Washington; education, infrastructure and competitive labor strategies.
westside on December 09 at 11:52 a.m.
Privatize state liquor stores like the rest of ‘normal’ states..save millions in payroll…Christine doesn’t have the guts, or courage, because she is scared to death of the UNIONS..which control Olympia…hey.. gov employees in unions control city county state management..not the other way around..
empyrius on December 09 at 11:59 a.m.
I hear that westside! Unions are busted up all over in the private economy, but you get a government job and it is all about joining the union: fubar!
MrNatural on December 09 at 2:31 p.m.
Ditto Megan B
Very well said as to my opinion. We have become a nation (community) of condescending malcontents which I feel serves no one. Also I find that it is easy to criticize government until you have the responsibility to run it. Instead of being solely critical of rising costs and focusing on straw-man arguments we should maybe try to support our elected officials as well as hold them accountable.
lewis8457 on December 09 at 3:31 p.m.
legalize weed and tax it. washington has a boomer cash crop why not use it to help fund the programs for the poor? the lottery was supposed to fix our educations problems but instead it is given to many different agencies having nothing to do with education.
The rich fund the non profits and charities as more comes out their pockets to pay the taxes where do the charities get their money?
Our governement spending is like a giant snow ball running down a hill, right now it is gaining speed, when it hits bottom everything will break part. we are on road to disaster.
But for some reason people voted Gregoire back in. Unbelievable..
Fuschia on December 09 at 8:27 p.m.
“There is no deficit” Christine Gregoire circa Nov 2008.
Perhaps she can get on her knees and go before the State Unions that she so graciously and benevolently raised their wages so they would vote her in office. and yes we do want a DO OVER of the giveaways.
Difference between Gregoire and Rossi was.. you knew when Rossi was lying.
The planets must have aligned. We had the worst president in Bush followed by Nixon with a fast second place challenger in Obama. We had the worst Govenor in Locke/schloke and gregoires coming from behind. Hint there folks. DONT elect attorneys. Should I go on with our 1/3 County sanity group, let alone the curse of the one time mayor? Chriss Hey dude Marr, wheres my car along with Lisa Brown.. brown the real color of my hair before the dye sunk in. Jimmy Marks was right. Cursed we are. Someone start cooking up the Fishhead soup.
Oh gee lets poney up a couple of BILLION for a Tunneled viaduct that only a few in the state will ever use, and has less capacity than the current viaduct and that the public voted against. Mean while Olympia burns while Gregoire flits over to Copenhagen and the environ-mental Soire. (seeing as how she doesnt represent the Country, what is she doing over there any way? getting an estimate for a sex change op estimate so she can run again for Governor?).
Why are we so stupid to elect these people? Why are we even STUPIDER to re-elect them knowing they are idiots?
Folks you get what you deserve if you are not active in the election process and that doesnt mean lick a stamp on a ballot.
reminds me that our Auditor had a major part in electing gregoire the first time..Got Ballots?
Ninch on December 09 at 8:42 p.m.
OK… Gregoire as governor is required to submit a budget, but after that the state legislature makes the decisions. Please contact your elected representatives if you truly have concerns about spending and taxes.
And Fuschia… your comment about Gregoire and a “sex change” was more than inappropriate.
Fuschia on December 14 at 9:35 a.m.
No it wasn’t. Ask Skeletor.
So whats her real reason to flit over on the Washington Taxpayers credit card besides to grandstand with her green flag in hand? She does not represent our Nation nor our Country, just our state and she does a bad job of that too.
Why dontcha file a PDA request and see just how much this cost us? She surely isn’t booking a fortnight at the Holiday Inn nor going economy class.