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September 16, 2010 in News
Gregoire: Services to suffer in state budget cuts
Spending cuts of 6 percent coming
State health care programs could shrink or disappear in the coming months, at least one state prison could close and college classes could be more crowded next semester as state agencies strive to cut a total of $520 million to keep the general fund from falling into a deficit.
“Our communities will feel it, our services will be reduced throughout the state,” Gov. Chris Gregoire said Thursday after ordering state agencies to cut 6.287 percent from most budgets outside of basic education.
In an afternoon press conference from Shanghai, where she was on a trade mission to increase exports and tourism, Gregoire said certain health care programs not required by federal law, including the state’s Basic Health coverage for low-income people, might have to be eliminated. The Department of Corrections could close another facility, although that process takes months and might not save the amount needed by the end of the fiscal year. Some DSHS programs require 90-day notice to recipients and can’t be cut immediately, either.
Final determination on where cuts will be made or how many state workers will be laid off will come by Oct. 1.
Cuts are being ordered because economists believe the state can expect to take in $770 million less through the rest of the fiscal year, which would wipe out a previously projected surplus and leave the state with a $520 million hole in its proposed spending plan. The state can’t run a deficit, so it has two choices: The governor can order all spending that isn’t protected by a constitutional mandate – which includes basic education, pensions and debt the state has already incurred – to take the same percentage level of cuts without eliminating programs the Legislature has approved; or she can call a special session to rewrite the budget to find at least $520 million in savings.
Gregoire said she opted for the former, even though it meant “I can’t prioritize.” She would only call a special session if legislators had an agreement on how to rearrange the budget, and that has yet to happen.
In fact, during the meeting to approve the economic forecast, Democrats and Republicans disagreed on whether to call a special session.
Sen. Joe Zarelli, R-Ridgefield, said it’s wrong to wait until the next legislative session starts in January, when there is only six months left in the fiscal year that ends June 30, then spend two or three months studying and debating changes. It’s better to start now, he contended.
“Our first responsibility as elected officials is to write a balanced budget,” Zarelli said.
But Rep. Ross Hunter, D-Medina, argued the Legislature, by design, doesn’t act quickly, so it’s important for the governor to order cuts now and let legislators make adjustments in January. The economy may be going through a major restructuring that will change employment and even living patterns, he said.
Throughout the day, the two parties continued the debate in a war of press releases. Senate Minority Leader Mike Hewitt of Walla Walla and House Minority Leader Richard DeBolt of Chehalis called for a special session in early October to make structural changes that save money now and in the next biennium.
Senate Majority Leader Lisa Brown of Spokane and House Speaker Frank Chopp of Seattle said state services need to be re-scaled for the new fiscal reality and that can’t be done in a special session. Spending $18,000 a day for a session when the state is trying to save money makes “no sense,” they said.
The current forecast is “much weaker” than the one offered in June, economist Arun Raha said Thursday. “What is plaguing the economy is uncertainty.”
Among the reasons for declining state revenue, Raha said: Job growth is anemic, consumer spending is flat, housing continues to fall. People are saving more, which reduces consumption and the taxes that generates. Commercial construction is “still very grim” but exports could give the state a boost, especially for aerospace and software jobs.
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509ifyourlucky on September 16 at 10:41 a.m.
“What is plaguing the economy is Gregoire aka Mrs. Taxandspend,”
worthasecondlook on September 16 at 11:15 a.m.
How much is it worth to you to not get put on hold when you call 911? How much of a cost to society is an uneducated child (school cuts) throughout their lifetime? How much is it worth to have EMS show up when you are in a wreck? Raise the taxes, I will pay more. My life depends on these services and without my life I have no use for my money.
PhiltheBibliophil on September 16 at 11:21 a.m.
worthaecondlook - well said! And yes Washington has exceeded its pocket book, starting with regressive business taxes and the economy that all states face. You can only raise Cigarette taxes so far. People don’t spend, no taxes, its that simple whether you’re a Republithug or a Democrat!
Rez on September 16 at 11:24 a.m.
And meanwhile I recently saw a lady use her Washington food stamp debit card to purchase four energy drinks. Does this stuff not make tax payers angry?
IHike4Fun on September 16 at 11:31 a.m.
worthaecondlook - so … that is all that is in the budget? cut in budget = no response from 911? Don’t be silly.
oneanddone on September 16 at 12:34 p.m.
The best solution is to raise taxes and cut unemployment benefits. There are jobs out there. Both to pay taxes and to hire the unemployed. As long as people get 2 years to sit on their can, they will.
liarsinnews on September 16 at 12:43 p.m.
PhiltheB (what ever): Were are you getting the crap re “all states face”? Try Utah for one notwithstanding other states that are much better off than Gregoire`s state of Washington with her reckless spending habits. And one more thing, i.e., Washington is one of the highest taxed states in the country, with a gas tax second to none along with cigarettes that top the lists as well. Today, Gregoire is on a junket to China and if you think she will make a difference with what China does, put a tooth under your pillow tonight. Junkets by state Officials seems to me, travel at will. I`d wager if the damn fools would quit traveling so much it might. And forget the rhetorical stuff about its relatively small compared to the billions of dollars spent. A penny saved us a penny earned and watching them the big bucks will watch themselves. Smoke on that awhile!
worthasecondlook on September 16 at 12:44 p.m.
Yep, raise taxes and cut welfare and unemployment. Anybody who does get it should have to volunteer 40 hrs a week until they find a job. Sweeping streets, pulling weeds, picking up trash, helping elderly with house chores, painting graffiti etc. Everyone get busy, get healthy, pay more taxes.
westerly on September 16 at 3:37 p.m.
Getting better all the time! Farther state gets in the hole the more they will have to cut…remember over 65% of all taxes OLY takes in..goes to the employees!! So….start chopping employees or their awesome entitlements…..can’t raise taxes to make up the deficit…the peasants will revolt and storm Olympia with anarchy!!!
Orange on September 16 at 6:23 p.m.
Someone please explain why it costs 18K to hold a session.
Dazzeetrader11 on September 16 at 9:04 p.m.
Nobody will relocate to Washington with the high taxes. Worse if 1098 passes. All these taxes are terrible. Once the people whoo actualy work and companies who actually produce, there will be no more money for her programs or the unions. This is the perfect picture of how socialism should end.
May we can get busy then. About time. Carbon copy of what Obama’s been trying to do . Vote in November. Vote conservative people in. Quite the hole the Dems and libs have dug for the people of Washington.
lewis8457 on September 16 at 10:47 p.m.
she is like a meth addict that needs a puff. except her drug is a open checkbook.
rezdog on September 20 at 2:49 p.m.
I have faith in Mrs.Gregoire and the job she is doing.The reality is what it is, no money no services. When we go to the store and dont have any money in our account, do we still get services or goods we cant pay for? Good times creates lots of services and bad times take them away.The only thing that doesnt change is our entitlement mentality.Are people really looking at the reason Washington and the rest of the US is in trouble? Is it really because of a Democrat or a recent Republican? These are hard times and hard decisions need to be made. If Mrs. Gregoire is the person with the ability to make those decisions then I am glad we have her as our leader.Too many politicians are afraid to pull the trigger because it is not in their political best interests.Our govenor cant save every program,or make everyone happy, but she does have a job to do. Lets be supportive and give her credit for trying to do the best she can with what she has.
rightwingextreme on September 20 at 5:29 p.m.
IS THERE REALLY THIS MANY ABSOLUTELY STUPID, IDIOTIC, MORONS IN THIS STATE!!!! worthasecondlook- YOU ARE OBVIOUSLY A MAGGOT GOVERNMENT EMPLOYEE OR POLITITION!!! Everyone should pay more taxes?!?!?!?!? WTF Are you some kind of communist RETARD?!?!?! You are telling people to pay more taxes?!?!? IDIOT!!! You obviously have no brain, have never owned your own business, and most likely have never even worked in the private sector! MAGGOT!!! FEEL FREE TO PAY MORE TAXES MORON!!! I’LL KEEP MY MONEY!!! IT IS MAGOT CLOWNS LIKE YOU THAT I WOULD CURB STOMP IN THE STREETS IF I COULD ONLY GET AWAY WITH IT!!! PRO TAX MAGGOTS PUCKS PLEASE DIE!!!!!!!!!!!!!!!
rightwingextreme on September 20 at 5:37 p.m.
rezdog- YOUR NAME SAYS IT ALL!!! Stupid fool!!! GREGOIRE IS A PUKE!!! and her pro tax and spend agenda has put this state in a horrible position!!! If you are a pro tax fool or support Gregoire, Murray, or Cantwell you are obviously either a COMPLETE RETARD OR A MAGGOT GOVERNMENT EMPLOYEE!!!! GO AWAY PRO TAX PUKES!!! The winners in this country, state and werever don’t want your kind around anymore!!!! GO AWAY!!!!!!!!!!
rezdog on September 20 at 7:26 p.m.
Rightwingextreme: Ur name also says it all.I am in favor of reducing spending/services before increasing taxes retard.
I do support Mrs. Gregoire…we almost had Rossi and I feel the right person was elected.Spend agenda? You gotta have money before you can spend it and that is the whole point of the reductions in services and possible taxes. Is it a little clearer for ya?