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December 12, 2010 in Nation/World
Legislature OKs deficit reduction plan in one-day session
Governor signs bills into law same day
OLYMPIA – Washington state lawmakers quickly approved a plan to shrink the state’s $1.1 billion deficit in a one-day special session Saturday, a preview of heavier budget-balancing work that lies ahead.
The Legislature’s bipartisan plan cuts state spending, raids off-budget accounts and counts on stepped-up collection of existing taxes to trim about $590 million from the deficit through June.
Further spending cuts and other steps identified by Gov. Chris Gregoire could subtract about $110 million more from the deficit. The rest will have to be addressed in Gregoire’s proposed supplemental budget.
“I am very proud of what the Legislature was able to do today and how they did it,” Gregoire said. “I think it’s historic, the bipartisan way in which they stood up to the most challenging time in 80 years.”
State officials face even larger deficit problems in the next two-year budget, which covers spending from mid-2011 to mid-2013. The shortfall in that nearly $33 billion budget is estimated at about $4.6 billion, the second straight two-year budget cycle dominated by slow tax collections.
Senate Majority Leader Lisa Brown, D-Spokane, said there were two lessons to glean from the special session: “One, this is going to be incredibly challenging. Two, things do go faster when there is bipartisan agreement.”
Straight-ahead tax increases were off the table following the November election, which saw voters reject new taxes and place renewed restrictions on the Legislature’s ability to raise taxes without a statewide vote.
Rep. Ross Hunter, D-Medina, said Saturday’s actions were just first steps “in managing our way out of this recession.”
About a dozen protesters stood in the rain to greet lawmakers heading to committee hearings. They carried signs encouraging higher taxes on the rich and sang Christmas-carol protest songs.
“We’re going to see really draconian cuts. I wanted to make sure people in poverty have a strong voice here at the Capitol,” said Jean Squires, a 29-year-old student at Evergreen State College who was holding a sign that read “Poverty is immoral.”
Gina Petry, who was working with a campaign called Sisters Organized for Survival, said that even people who don’t currently use the services at risk should be worried about the cuts.
“All it takes is one layoff or one accident, and they can be in a position to need these services,” she said.
Most of the spending cuts in the Legislature’s $590 million plan were tied to education and social service programs, with each category reduced by about $100 million. That included suspension of a payment meant to reduce K-4 class sizes, reductions in Basic Health spending and smaller cash grants through the Disability Lifeline program.
About $50 million would come from the Department of Corrections, including plans to close the prison on McNeil Island in Pierce County.
Roughly $210 million would come from diverting federal aid intended to boost public education employment. About $55 million more would come from various smaller fund transfers.
The state Department of Revenue also was expected to contribute about $45 million, including plans for a tax amnesty program that would encourage settlement of delinquent accounts.
Gregoire signed the bills into law Saturday night.
“The Legislature is at last moving in a positive direction,” said Sen. Joe Zarelli, R-Ridgefield. “It took far longer than it should have to get to this point, but perhaps the severity of the budget situation is now understood in all quarters.”
© Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Obama honors Medal of Freedom recipients as heroes 
deacon46 on December 12 at 12:51 a.m.
A bipartisan agreement still doesn’t make it right. We the tax payers keep paying for the mistakes of politicians and their special interest friends. Why do we get essential services cuts when these folks and the unions live like there is no recession.
oneanddone on December 12 at 4:35 a.m.
Exactly right William, and why this country will continue down the drain until something akin to a flat tax is instituted. Tax every dollar of income, with absolutely NO exemptions of any kind for anyone. That means business, farmers, churches, the poor, the rich. When money changes hands the government gets a percentage cut. There is one exception I’d make - jobs. Each job for any legal American over a certain dollar amount, and less than a certain amount, would represent a discount for that business. Congress could no longer make any law which affects taxes. They could still haggle how the money is spent but no more handouts to special interests by scumbag congressmen or legislators.
D Statler on December 12 at 6:32 a.m.
I agree with your flat tax proposal. I don’t think people on welfare or disability are going to like paying their fair share.Earned income credit needs to STOP too.Buisnesses are going to cry like stuck,fat pigs when they actually have to pay a flat tax aso.I also believe the state should make prisoners work for their room and board.Shoot the ones that run.This would eliminate a bunch of payed goofs standing around while ONE works! There would be more than one working anyways. There are plenty of ways to make our system fair for the poor and wealthy. Time for a fresh start in Washington State.
mikeln on December 12 at 7:56 a.m.
Seems like just another shell game to me. Make cuts that, in the end, will end up costing us much more. A flat tax is a good idea if you can eliminate loopholes for the rich. If we are going to make cuts in education and help for the poor we need to make cuts in corporate welfare also. Case in point, companies like Wal-Mart pay their workers just enough to let them qualify for state subsidised medical, Wal-Mart needs to pay for their workers health insurance, not the taxpayers. This is just one example of the wealthy using socialism while opposing it for the rest of us.
berrybestfarm on December 12 at 8:03 a.m.
It is time for a flat income tax and doing away with the hundreds of fees and other taxes that are constantly tinkered with and drive us all crazy, including businesses. The devil is in the details and we can’t trust the same politicians who are in the laps of special interests with these details. It’s going to have to be done through a constitutional amendment. We’ve already learned that Initiatives to control taxes will be overturned. Is anyone aware of a group that is working on this?
SpokaneLiberal on December 12 at 8:14 a.m.
Here is my inclined tax proposal.
No deductions, no exemptions, no credits.
Everyone’s first 20K Taxed at .5%
Everyone’s second 20K Taxed at 5%
Everyone’s Third 20K Taxed at 10%
Everyone’s fourth 20K Taxed at 20%
Everyones Fifth 20K Taxed at 30%
Everyones Second 100K taxed at 40%
All income above 200K taxed at 50%
Businesses are taxed on Net Profit.
Albert on December 12 at 8:33 a.m.
Good morning all, I have just read an article from our locale from 20 years ago and it’s horrific. We are now witnessing this same “initial challenge” here in Spokane - and throughout WA. How will we handle the potential disaster is going to require some bipartisan economic decisions that will not be pleasant. Here is a link that will prove to be somewhat shocking, however we all need to clearly understand what will transpire unless some immediate action is undertaken:
http://www.sbsun.com/news/ci_16837650
This Special Session was not pleasant, however it is far from over. Many people are going to feel the cost of the Great Recession.
I’m tossing out an idea to all of you please. We all “kinda” know one another on this site, thus I have come to understand and “trust” the majority of you folks. I believe that you also know “where I’m coming from” as well. I am NOT political as you know, however as you see from this post, I have a background in economic protocol, as well as legal platforms. Our city council is in the dark on these issues, runs on “favors” and is in need of an outsider. I am “thinking” about running against Corker. This fellow is out to lunch and needs once again to be tossed. I value your views on this thought please.
My platform would be “no politics, save money, and stay outside of the ‘favors’ “ Thanks
Scoutster on December 12 at 8:59 a.m.
The elected reps of the state came together and created a bipartisan response to the declining state revenues.
Whatever you might feel about the programs that are or are not funded, it is pragmatic and useful when Rs and Ds can come together and agree on these items.
We live in a cynical world. But maybe this was a good day, not a bad one.
Scoutster on December 12 at 9:01 a.m.
Albert…
Without hearing more detail I cannot speak to the wisdom of a campaign.
But with all due respect, I would caution you against considering us pirates on this boat a very representative sample of your potential voters.
eagleproducer on December 12 at 9:42 a.m.
State cuts like this across the nation will send the U.S. into a prolonged depression.
Tax the hell out of those who caused this mess to begin with. Don’t tell me the country is broke when corporate Amerika just posted record profits.
http://www.nytimes.com/2010/11/24/business/economy/24econ.html?_r=1&scp=1&sq=record%20profits%20for%20corporations&st=cse
Flat taxes are not a good idea. Progressive income taxes, when they are truly progressive, are the best model in my opinion. With the current deals at both the state and federal level, the working class gets left holding the bag.
eagleproducer on December 12 at 9:49 a.m.
Get rid of the mortgage deduction, get rid of farm subsidies for Big Ag, no more robbing the treasury with charitable deduction tax breaks, bring churches into the tax system and enforce existing tax laws.
eagleproducer on December 12 at 9:51 a.m.
bestberryfarm: Call Tim Eyman.
mikeln on December 12 at 11:31 a.m.
Albert, I looked at the link, and you are right. While corporations sit on trillions, waiting to invest anywhere but here, our people go without jobs and are not paying taxes that support our education system. These people are not interested in our educational system because they have no plans on doing a lot of hiring in this country. They are not our friends and we should tax the hell out of them and if they run, shoot ‘em.
Dazzeetrader11 on December 12 at 12:40 p.m.
1. Lisa Brown is such a genius: hey this is tough! and things work better when both sides agree!. And this is your leader???
Send this one packing Spokane, A completely inexperienced untrained person could say this!
2. Albert…I have some experience with those budgets in California. What the article doesn’t say is that the source of each and every shortfall in CA is…the one not mentioned anywhere in that article: Union wages and their $150 billion pensions. LA cannnot fund them. Not one city or county in S Cal can fund them. In fact they’re so large, nobody knows how big they are!
Might be as high as $500 billion. Unions have their version ( th e higher one) and the government says $150 billion. It’s not known yet but that’s the problem.
3. The only fair approach to tax is a flat one. 20% flat pulls the country out of debt within 5 years if the money is spent appropriately…no favors…,cuts still in place, no pork…but the unions have to dry up and stop their raises with incremental pension funding.
One big problem is that $48.7% of the US pays no tax now. Obama wants to give them unemployment funding. They become more dependent on government hand outs. Don’t you wonder if the untaxed might object ( this is the Dem base…remember that) to being taxed when they pay none now?
4. Remember the politicians only job is to get re-elected. It’s their job. None/few of them have jobs to go to. This is an incentive to favor those who keep them in their jobs…like unions (Verner, Obama, Gregoire). If the unions are the source of budget problems, and if the politicians depend on unions for their job…and if education can’t be supported because on pension funding, what’s the source of the problems and what’s to be done? Keep the jobs..but shed the unions. Hard fix but it’s necessary.
5.It’s not the rich…they’re just the most visible. It’s the invisible things needing correction before this country and state gets fixed. Stopping wars would help too. Stopping welfare or cutting it tremendously would help. But it’s those unions. Policemen and firemen and teacher function the same everywhere there is no union. Washington St and New York…fail and increases taxes to fund those pensions. Stop those, and thing work out. If you saw the bills for those pensions, you would be furious.
Dazzeetrader11 on December 12 at 12:49 p.m.
Oh..and please define rich before you rail against them Mike and Tucky. Nobody ever does define that. It’s a wastebasket term. I dunno who they are these days. Define terms ..it leads to a better productive conversation.
Albert…all I can say is that the entire City government needs to be booted. verner on down. Might not be Corker…but somebody else…..anybody else…..just replace someone in your district! I’d go hard at Rush Snyder and Waldref or Apple…Rush and Apple leave anyway as I recall. One person who absolutely needs to go is VERNER! She’s the source of all this garbage, incompetent management, spending, bad roads…and soon the raise in utility taxes too. She’s your basic problem.
Her crazy spending is off the chart. Clever politician who points to everyone else being too greedy. It’s not hem. It’s her! She need to go back to the tribe. I hope you all know she gave them a full block on Bridge and Monroe (overlooking the river) for a silly museum…like Spokane needs more. $4 million dollar land..she gave away instead of paying down Spokane’s debt). She’s got Spokane in a major shell game. She needs to go.
spokanecougar on December 12 at 1:33 p.m.
Daisy, nobody cares what you say and you have no right to comment on Spokane politics since you live in California. Last time I checked we here in Spokane were not a part of California. If you want to to Spokane or move back here, then maybe you will have to right to judge us and our mayor, until then, shut up.
As for the rest of they stupid points you made, I will let people with more time to shot those down and make you look silly for posting such stupid statements.
And if you don’t know what rich is….obviously you are.
misjustice on December 12 at 1:50 p.m.
“Roughly $210 million would come from diverting federal aid intended to boost public education employment.”
Is this even legal?
Diverting federal funds, which were given for a specific purpose, to where? And how will the diverted funds be spent? On what?
I wouldn’t define this as “moving in a positive direction”; more like robbing Peter to pay Paul.
hawken on December 12 at 1:51 p.m.
1- Corporations will continue to sit on their trillions until, demand for products and services increase.
“Since we know that Personal Consumption Expenditures comprise 70 percent of GDP… The demand problem we have on our hands is what is keeping companies’ spigots closed.”
2- Corporations don’t trust Obama.
“But all [the business leaders] think he is, at his core, anti-business.”
http://www.businessinsider.com/heres-the-real-reason-companies-arent-spending-their-mountains-of-cash-2010-7
Like it or not…. true of false…. perception or reality… that is the assessment of the CEOs of large corporations. All of whom are responsible to their stock holders. Namely, that Obama is “anti-business.”
3- Cash reserves belong to the everyday, average, American stockholders of all corporations. Not the government.
These average Americans, their pensions, their incomes and their future, are dependent upon how well the corporations are managed by their respective CEOs.
Corporations include average American investors whom have personal, financial interests in those corporations.
Corporations are NOT the “evil” Darth Vader of the dark side you want to make them out to be.
4- Tax them [along with small business, ie; $250k and over], more,,,, and it will result in the loss of even more jobs.
Even Obama has “finally” acknowledged this fact.
To increase taxes on anyone, now, would put us into a double dip recession and maybe,,, another Great Depression II
“Economists say the tax hikes that would result if Congress failed to act could cost “well over a million jobs,” Obama said.”
This is an article today, on this blog…. which of course, not one single liberal has commented on to date, as I am writing this post.
I conclude, that the reason there are no liberal posts on this story, is,,, because,,, Obama himself, has embraced the “conservative view,” regarding the damage that would be done if any taxes are increased in a recession. Maybe, because he “is teachable”,,, or more probably,,,,, because he was forced to abandon his hyper-left governance, by the electorate and economists.
I think the latter is the more probable.
Nevertheless, apparently, he “has seen the light.”
Here’s the link….
http://www.spokesman.com/stories/2010/dec/12/obama-sticks-with-the-plan/
Complain all you want.
In the end, there are laws of economics that trump the “purist”, world views of far left, liberalism, socialism, Marxism and communism.
Ninch on December 12 at 1:51 p.m.
Why all the comments on FEDERAL income tax? This article is about the STATE OF WASHINGTON which has NO INCOME TAX!!! The largest source of Washington State revenue is SALES TAX which all residents pay. The second largest source of revenue is B&O tax paid by businesses operating in the state. Our Washington State Constitution mandates that “basic education” be financed (approx 50% of general fund).
It appears the real problem here is that so many are off topic… or really do not know much about government budgets (expenses and revenues) and the Washington State constitution.
misjustice on December 12 at 1:52 p.m.
@ spokanecougar; Daisy claims that she voted in our last election, yet she also brags that she doesn’t live here. Sounds like voter fraud to me; she called it an absentee ballot in one of her posts.
Dazzeetrader11 on December 12 at 2:08 p.m.
Daisy owns property ie land etc in Spokane. I vote and have every right to vote.
Couglette doesn’t like ideas unless they’re his……which doesn’t speak well for “Ideas” in general. …but his especially.
My point was that if taxes and spending don’t resolve, we’re all sunk. Simple concept. Washington is already sunk unless the unions are defrocked. They won’t give. Continued pension funding needs to stop. There are jobs..just not the hugely expensive jobs. Union jobs WITh those outlandish pensions are THOSE jobs.
My comment on CA was generated by Albert’s link. It’s what happening in Wa St as well..it’s just hasn’t reached the same severity….yet. Raising taxes or cutting taxes will never resolve debt unless the source of the debt is dealt with. Biggest source immediately resolvable is ongoing union debt in pensions and high pay. There’s your quiet culprit. Obama, Verner and Gregoire know it but won’t fix it. One thing indisputable is that the free lunch is over. Party is over! Time for reality. “Toughen up” is the message.
hawken on December 12 at 2:13 p.m.
Daisy…. far left liberals such as spokanecougar attempt to intimidate and censor others whom argue effectively against their hyper-left view.
Recent examples:
1- Al Sharpton… wants Rush Limbaugh taken off the air by the FCC.
“Sharpton Meeting With FCC to Demand Rush Be Thrown Off Air”
http://nation.foxnews.com/al-sharpton/2010/12/07/sharpton-meeting-fcc-demand-rush-be-thrown-air
2- “The Fairness Doctrine” … another censorship attempt by the far left.
3- Juan Williams fired by NPR.
Don’t cave into them. There are many on this blog have a genuine interest in what you have to say.
misjustice on December 12 at 2:31 p.m.
No one is trying to silence anyone, Dr.
Simmer down; don’t get your manties in a knot.
; )
Well, then Daisy do you also cast a ballot in the state in which you reside? Just curious…
hawken on December 12 at 2:45 p.m.
Daisy… whatever you tell the far left about yourself, personally, will be distorted, misrepresented, maligned and lied about.
I learned this the hard way.
Dazzeetrader11 on December 12 at 3:07 p.m.
Illegal to do that as far as I know J. I do vote local…but I have homes in more than one state ( as an FYI).
Haeken the little couglette has always been hostile. He doesn’t count for much. No worries.
Daisy must speak up. This one forum and this one column has generated lots of good thoughts and good ideas. Aside from Couglette’s outburt which ended as a mere disruption,
(unfocused as he is), it’s generated multiple approaches to debt and cost cutting.
Unless the source of the debt is dealt with though, nothing will be effective. The source is clear. Unfortunately, it’s becoming obvious that the government and their mandatory contracts with the mandatory spending is, in some ways, working against the people and working as a vehicle fleecing value and money on behalf of unions. Of course the handouts are extreme.
“Rich” and “poor”, “middle class”…must be defined so we have an idea as to whom we all talk about. Couglette idea is plain silly…”if ya have to ask, you’re rich !”( ie enemy of the people in his addled brain). Each definition will be different oftentimes as a result of where one lives. “Rich” in Spokane is far different from “rich in Beverly Hills for example which will be different from mid town Manhattan. Definitions make for a useful discussion. Seems like Obama has shifted to $1 million down to $250K. and then up again. I do know a tax of small business is crippling. Gregoire is after that..not just Obama.
When the government spending is the immediate source of the problem, they must cut or be replaced. It’s not their money. Does anyone really trust an elected official who has no idea about working in the private sector? Doubt it. Does anyone trust the elite who don’t ever pay bills or has kept and checkbook? Nope. Trust the one who makes common sense accourding to your own financial experience. You spend too much, best be figuring out how to pay for it or go broke. No nets and no borrowing…figure it out. Should government be any different?
Verner ever work in the private sector? Gregoire or Obama? Not one of them. And yet each is a financial disaster… does this surprise you? It’s your money…keep it. You’ll do better. Who said you should pay for your neighbor’s mortage or his education? They do. Keep your money..you’ll do better.
hawken on December 12 at 3:08 p.m.
Ninch…. your point is valid.
Looks like spoketucky on December 12 at 9:42 a.m. led the way to the federal discussion.
But since we have a “balanced budget” requirement in WA….. spoketucky has no place to rant unless he takes the discussion to the federal side.
Nevertheless, the economic principals are the same for both state and federal.
I for one, don’t mind the topic making a turn, as long as it’s relative to the focus of the group.
You might also notice that it was spokanecougar, another far left liberal, who yet again tried to change the subject by telling Daisy to go away.
When liberals are defeated on the points with actual facts, they are compelled to change the subject. What more can they do?
Having pointed that out. You will never hear me or any other genuine conservative call for censorship. Or,,,, ask somebody to go away.
Gads! I’m a Spokane County resident and have been for many, many, years,,,, and the same bunch has told me to go away on several occasions.
gslbball on December 12 at 3:20 p.m.
Life’s full of choices, folks. Let’s not encourge the average income earning person to peek all the time at the other person’s plate who happens to make more money.
Exceptions for the truly needy, of course.
eagleproducer on December 12 at 3:22 p.m.
hawken might be figuring out why he has two ears and one mouth.
Dazzeetrader11 on December 12 at 3:47 p.m.
gsl…that’s what happens when libs do a group think that we are all a big group….they’re always worried someone might do better…which should be illegal because we’re all one! Well, we arent. We’re individuals..some work harder, study more and longer…etc.
Americans usually get rewarded for harder work. They make choices. Some have their hands out just because somebody has more forgetting that hey might have created more…
When “Ethics and Morals” enter in, it’s useless to discuss it.
gslbball on December 12 at 4:01 p.m.
@Daisy–very true. Some folks choose to be blue collar workers, skip college, make less money. That’s a choice facing most people when leaving high school (if you stayed in HS). Choices like that can be good because we do need production workers, etc. But if you made the choice not to better your career or lot in life financially, it’s not up to someone else who made a different or better choice to have to carry more of the burden.
While not all have a choice due to disabilities, things of that nature, the large majority do. Gotta make good choices, or it will affect you down the road.
PlanB on December 12 at 4:07 p.m.
This bi-partisan lovefest is all fine and dandy, but I wonder how much of it was just wanting to get home.
And, nothing in this article indicated that they have done anything to alleviate the crushing number of regulations, rules, certifications, laws, use fees, etc.. etc.. etc… They have done nothing to simplify government even though they have had three years to do something. Their response is simply to cut services to those who need them the most. Raiding off-budget accounts is the only positive thing I saw.
And for the flat rate taxers, you should do some research. Even though I personally feel the rich are not paying their share, they are in fact paying by far the majority of personal income tax collected. A flat rate tax will burden the lowest income the most. Think about it: someone making a few million is paying $600k in tax, how many people making minimum wage would it take to pay that amount?
hawken on December 12 at 4:38 p.m.
PlanB… I agree. I don’t think the flat tax is the solution either.
Our current tax code is a disgrace.
I prefer what is called the “fair tax.” Or, some form of the fair tax.
It’s basically a national sales tax with special provisions for the lower income.
Basically, the more you spend on goods and services, the more you are taxed. The ultra rich who buy airplanes, yachts, second and third homes,,,, etc… would pay much more tax.
Those whom are frugal in their spending, would pay much less in taxes. Basic necessities such as food could be excluded from any kind of tax.
What I like about the “fair tax” is that I can determine, to a large degree, how much tax I will pay, based upon how much I spend.
It also rewards those who save, without penalty.
SpokaneLiberal on December 12 at 7:26 p.m.
I still like my inclined tax, which I note no one objected to.
eagleproducer on December 13 at 9:57 a.m.
Any type of fair tax would bankrupt every level of government within years. It’s why the far right wing of the GOP likes it.