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December 19, 2010 in Business
Caldwell: ‘Immoral’ cuts shine light on economic reality
Gov. Chris Gregoire did the moral and immoral in a single turn last week: She released a balanced budget for the 2011-’13 biennium.
The 40-page summation is moral in that it meets her constitutional obligation to assure the state lives within means diminished by a sluggish economy. It is immoral, by her own definition, because thousands of Washington’s sick and disabled will not get help that the state has been providing.
These are not mere cutbacks. The word “eliminate” appears repeatedly – 80 times by the governor’s reckoning – sometimes in front of programs she holds dear.
The Basic Health Plan, for example, has been considered a model for state-subsidized medical services to those too poor to pay the bill themselves. Come July 1, the start of the next fiscal year, 66,000 people will have to find another way to pay for treatment, or stick hospitals and doctors with unpaid bills.
The positives are few but encompass activities business leaders should like, particularly ongoing spending on major infrastructure projects like the North Spokane Corridor.
The Community Economic Revitalization Board will get more money to support job creation. Spokane has been a major beneficiary of CERB loans; $6 million has gone to companies that maintain and paint airplanes at Spokane International Airport.
The state will sell $1.3 million in bonds to upgrade the Second Harvest food bank.
Not on the governor’s list: funds for a $75 million biomedical building that would be the centerpiece for the cherished four-year medical school on the Riverpoint campus.
Education, the foundation for the economy of the future, continues to absorb losses, just as students who will pay still higher tuition absorb more debt.
Also not on the governor’s list: new revenues. She got the message from voters who justifiably rejected an income tax, and foolishly rejected the tax on candy and bottled water. The $218 million the candy/water would have generated during the biennium would just about have covered the $230 million the Basic Health Plan would have cost.
Gov. Gregoire having proposed, the Legislature will dispose. Alternative plans are likely from Democratic and Republican ranks. Democrats may try shuffling the deck chairs, but titanic pain is inevitable.
Not surprisingly, GOP lawmakers like what they see from the governor. A few are grousing about service cuts – like ferries – to their constituents, but what do they expect?
Look for a renewed Republican push for privatizing state services, which a new paper from the Washington Roundtable and Washington Research Council suggests could reduce costs by as much as 15 percent but at least 5 percent. But not within this biennium.
Nor will the state capture more revenue from an improving economy soon enough to avert a lot of damage. The governor, who was too free with Olympia’s purse when times were good, sees the economy for what it is, not the way she or anybody else would like it to be.
“I hate my budget,” Gregoire said.
As should we all.
Caldwell: West Point trained local bankers to survive 
mikeln on December 19 at 3:10 a.m.
Our corporate masters put us in debt and blamed the poor while still filling their pockets. Now we are cutting education funding to the point where we are turning out students who can not do what few jobs are left. Anyone see anything fishy going on here? How are these people going to pay for the debt that has been left to them when they can’t get a job. It seems to me a deal has already been made and it doesn’t include us.
ditaylor on December 19 at 7:31 a.m.
The cuts to social services most particularly now, is appalling. For non-service projects to be whining and bemoaning their loss of services is unconscionable. We are truly turning into a “THIRD WORLD AMERICA.” We talk about the importance of health care reform, but ‘our state leaders’ show us otherwise. We as a nation continue to move the poor from one social program to another all the while never really providing a workable solution to help them climb out of what has become a black hole. Without the Basic Health Plan, state leaders know that these people will find themselves using the hospital ER for non-emergency care under the EMTALA passed in 1986.
We complain that people over use the emergency room for non-emergency issues, yet their other options (not all options) are severely limited. We have medical offices cutting or minimizing the amount of medicaid and medicare patients, because of low reimbursement rates. (you can’t blame them per se – their administrative costs for this insurance and drug dance – which is a whole different story – is EXPENSIVE to them). NOW Gov. Gregoire has held up the funds or cut the funds – still trying to catch up with the latest, to the community health grants. WHERE are these people to go to get accessible, affordable AND quality health care? It is sickening to think we tout America as being this WONDERFUL country. (and it is, BUT our policy makers are self-serving, pocket liners for their self-interests) and yet we are quickly becoming a THIRD WORLD AMERICA – our upper middle class are sliding down to middle, middle to poor and poor to penniless – can anyway say communism? – we are quickly losing our democracy, yet will we as Americans realize it until it’s to little, too late?
greenlibertarian on December 19 at 8:40 p.m.
The cuts to already low-wage home health care folks, who ARE NOT state employees, are cruel and pennywise, pound foolish. These vulnerable folks will end up in Nursing Homes at 5 times the cost of quality in-home care. Just plain stupid.
Dazzeetrader11 on December 20 at 12:41 a.m.
Whose “corporate masters ” Mike? Is this something you heard or read or saw in a midnight movie while you were loaded? It’s just jargon Mike. Has no bearing on anything. If anything, sober up and while you’re sober, check into how much money the unions are taking from Gregoire. No wonder she has to cut homeless people off. She gives the money to the unions for benefits and their pensions.If you have a moral compass, look into it.
Get a bit old when you impugn the wealthy since you’ve never defined what “wealthy” is. It’s you loyal union buys who are killing the state. Gregoire knows this as does your mayor verner. It’s a game. They just need the unions more than they need the unprotected.
ditaylor…you too. look into it instead of spouting the traditional liberal line…woe is me.woe is the poor. Woe is Chritine.oh wahhhhhhh…..notice who never gets cut? Mr Union and his friend who rape the place year after year. Your leader has chosen them over people who pay taxes.
Greenie…ur just a lost cause.
drywitt99 on December 20 at 3:21 a.m.
Daisy,
wealthy: anyone whose income tax rate is 35% or higher..
corporate masters: any corporate executive who receives a six figure bonus when his company LOSES money, and who outsources jobs anywhere Francis Scott Key did NOT write the national anthem.
Bring back the Wobblies!!!
mikeln on December 20 at 3:39 a.m.
Daisy, you are such tool. You believe that the same people who are stealing from us are the ones that are going to save us. You decry a living wage with health insurance to the people that do the real work while kneeling to the wealthy. I don’t need to tell you who they are, you already know.
heybattabatta on December 20 at 9:55 a.m.
Daisey - Well said.
To the rest of you liberal bigots, DO something about it, don’t just expect handouts. Your bitterness towards the “wealthy” is based on ignorance and jealousy. The “wealthy,” for the most part took, responsibility for their future. This remains the land of opportunity, if you are so inclined to pursue it.
And while you are doing your research, see how many millions of dollars are going to special interest groups in the way of tax incentives. That is also where your “liberal” dollars are going.
mikeln on December 20 at 10:23 a.m.
The wealthy I’m talking about are the ones who inherited their wealth and think a hard days work is done on the golf course. And if by responsibilty you mean buying laws from bought and paid for elected officais, yes that has been the case. The reason we are in this mess is not the fault of the poor, they have no power, it is the fault of greed, a quality of the super rich. The only time these people are christians is on sunday when they compete to put the biggest check on the collection plate. For every dollor spent to help the poor in this country, ten go for corporate welfare.
schleufer on December 20 at 1:23 p.m.
The PR people for the companies that wanted taxes removed from thier products did a great job convincing the public vote, you know you have done a great PR job when you convince a poor person to vote against candy tax and they get to save a few cents on the snacks but in the end they lose thier health care. By lowering the taxes the companies stand to sell more product and increase thier profits, they could care less about the well being of the people.
cheddar on December 20 at 2:40 p.m.
The only immoral act that was committed here was making a promise that couldn’t be kept. In this case, Gregoire promised to be the vote-buyer for the liberals, keeping them on the teet, and when she ran out of other people’s money, she had to go back on her word.
You want low unemployment? You want prosperity? Quit taking away the incentive to succeed. It amazes me how many of those commenting have such a hatred for the wealthy… I’m not wealthy by any stretch of the imagination, but instead of whining about what you DON’T have, go earn it for yourself!
Eventually, those of us who pay into the tax system will get sick of dragging the deadbeats along for the ride…
bdr on December 20 at 5:28 p.m.
States drowning in red ink but ,HEY BILL GATES GETS A TAX BREAK!
Loved the 60 minutes show Sunday….shows the States DID go over the Grand Canyon edge……and might drag the entire FED down with it.!
misjustice on December 20 at 6:23 p.m.
bdr; I didn’t love last nights 60 Minutes but I did find Governor Chris Christie’s interview to be interesting; in a can’t look away from a car wreck kind of way.
Alfredo on December 20 at 11:20 p.m.
Lol @ cheddar. Do you really think YOUR share of what you pay into taxes covers everything you get in return and actually goes toward supporting others? I keep hearing the gas-bags on the right crying about hot the top 5% pay most of the taxes then seconds later cry that THEY are paying too much tax. Which is it? Or are in the top 5%?