Spokane7
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September 17, 2010 in City
Final decision on state cuts, layoffs to come by Oct. 1
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 $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, China, 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 are 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 flurry 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, and housing construction 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.
Supermajority for taxes unconstitutional, judge rules 
ChefGus/ John Olsen on September 17 at 5:42 a.m.
Although sales type tax is regressive, a fairly simple and straight forward solution is to raise the tax on “liquid fuel” ie gasoline and diesel petrol. The price of fuel at the pumps goes up and down several cents a week at various times of the year…so it is hard to make a case that the average citizen would have their life visibly altered in any real way..and while I don’t quite know what the math is… but a 5 cent or more tax per gallon of fuel, directed soley to human services and education could generate a stable cash flow.
The truth is we need to “raise taxes” to have an equitable and balanced society. Cutting services, resulting in pain and displacement of families in lieu of me not using my car seven days a week seems a small sacrifice for for a more peace full and just world. John
westerly on September 17 at 7:42 a.m.
the majority of population wont’ feel a thing…
lewis8457 on September 17 at 7:57 a.m.
The problem is the tax increase is already spent before it is even generated. i am not interested in paying more tax for less, we are already doing that.
If they could pry the checkbook out of Gergoires hand i might be more positive but frankly if the folks of washington re-elect gregiore like last time i will just give my fuel money to Idaho.
worthasecondlook on September 17 at 8:01 a.m.
Cut unemployment and welfare and make people volunteer 40 hours a week if they do get it for a short period of time.
liarsinnews on September 17 at 8:27 a.m.
I`ve already saved money going to Idaho. Why should I give Gregoire more money when she is holding her news releases from China? Why in the heck isn`t the junket travel curtailed? I`ll wager the Chinese have a smile on their face that time will not wear off every time the politicians decide to vacation in China. They accomplish nothing. Who is nieve enough to believe their going to tell the Chinese what to do?
Ninch on September 17 at 8:40 a.m.
Apparently, Chef Gus does not need his vehicle to get to work unlike most of Eastern Washington residents. In other words, 5 cents a gallon is a big deal for lower income workers. Note also that fuel tax revenues (state and federal) are reduced because people have already cut back on driving as well as adopted other cost-saving behaviors.
But what is really hard to believe is that certain people are advocating raising taxes instead of limiting/cutting government growth!!!
zelda on September 17 at 10:13 a.m.
I am pleased to see Lisa Brown’s pragmatic statement about re-scaling the government workforce to align with shrinking state revenues. It has to be done.
misjustice on September 17 at 11:16 a.m.
“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.”
Of the two choices given from the above article, I agree with the Governor’s difficult choice of across the board cuts (where it’s within the Executive’s authority to do so). Additionally, I support her decision to NOT call a special session without an agreement.
For now, enact the cuts and let the Legislature duke it out during their regular session. Why should we pay for a special session just so they can argue on our dime, and possibly still not reach consensus?