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December 13, 2011 in City
Budgeters put tough decisions on hold
‘Early Action’ relies on transfers, savings
OLYMPIA – For two weeks, legislators have heard emotional, sometimes angry testimony against major cuts to state programs and in favor of raising taxes. Monday, it became apparent they will do neither.
At least not this month, in the special session called to address the shortfall.
Legislative budget negotiators announced an “Early Action” budget in both houses that would fill about $480 million of the projected gap in the state’s General Fund budget.
It involves an array of administrative cuts, fund transfers and savings achieved in different state agencies. But it has none of the controversial program eliminations Gov. Chris Gregoire proposed last month.
“These are the least painful cuts. There will be more pain later,” House Ways and Means Committee Chairman Ross Hunter, D-Medina, said after one of the shortest budget hearings in recent memory.
It was in sharp contrast to a hearing just two weeks ago, when protesters had to be carried from the room by state troopers. On Monday, witnesses used phrases like “relative lack of trauma” and “creative approach,” but acknowledged it was only a partial fix.
The legislative budget proposals – which are currently identical but could be changed with amendments in the respective budget committees or during floor debates – put off until early next year the difficult decisions Gregoire said are needed to solve the state’s budget problems.
The state can’t run a deficit, and it currently has a projected shortfall of $1.4 billion between money going out of the General Fund for scheduled programs and salaries, and the amount of revenues expected to come in. A month ago, Gregoire proposed cuts and various fund transfers totaling about $2 billion, to close the gap and provide for a cushion if tax collections continue to fall.
The legislative plans amount to less than a fourth of that amount.
State Sen. Mark Schoesler, R-Ritzville and a member of the Senate Ways and Means Committee, called it a “timid but necessary” budget. “Baby steps,” said state Sen. Mike Padden, R-Spokane Valley.
Some reductions are achieved through accounting maneuvers. For example, like Gregoire, legislators would have the state delay a payment to schools to help cover bus depreciation for nine months, which saves about $49 million over the two-year budget cycle. They would make some changes in the way schools report enrollment, which saves money in some places but costs a little more in others.
But there are no proposals to change the levy equalization program or the number of school days, which Gregoire has in her proposal.
“We don’t have consensus on cutting four days out of the school year,” Hunter said.
Gregoire also proposed asking voters to raise the sales tax by a half-cent for three years to “buy back” the deepest cuts to schools, health care and public safety programs.
But any discussion on tax increases, like discussions on deeper cuts, will wait until next year. The closest the Legislature might come on a tax issue is to ask Congress to pass a law that evens out sales tax rules across the country, so states receive taxes from retail purchases their residents make from online retailers in other states.
Supermajority for taxes unconstitutional, judge rules 
polistra on December 13 at 3:38 a.m.
Bad sign. In the previous few years, Olympia has been able to make hard decisions. Now it looks like the fatal DC Paralysis Syndrome has spread to “the other Washington.”
oneanddone on December 13 at 4:09 a.m.
With our two party system in grid lock there needs to be a system that blows up the log jam. When the legislature (or Congress) can’t pass a budget proposal without a veto threat then have both sides put forth their best idea. Let the media beat it to death for a month or two then let the rest of us decide with a plebiscite. For sure that will draw both sides as close to the middle as they can get. It also won’t take long for elected officials to work more closely together.
Orphan on December 13 at 6:19 a.m.
Oneanddone
Using the popular vote to bust the log jam would turn our republic into a democracy, not a good idea. The reason why we are a republic is to prevent 51% enforcing their will on the other 49%. We have a log jam in our country because we are pretty evenly split politically. The system is working exactly as it was intended to work, frustrating for sure but working as planned. Hopefully the next election will alter the balance and we can get back to normal.
A great example of the system working as planned would be the 2010 national elections where collectively the people realized thet the democrats had too much power, did not like what the democrats were doing and voted in the republicans. Quite a few of us on both are frustrated at the moment, the reason we are frustrated is we are not getting our way so 51% is not able to enforce our will on the 49% thus the system is working as planned. Just look at the last presidential election 53% to 47% that is only a 1 1/2% margin thats not much and certainly not a mandate.
I am quite sure that no one on either side of the political world would want to be dominated by the other side over 1 vote, think about it.
There are huge drawbacks to a democracy vs a republic that is exactly why the founding fathers opted for a republic
DickAdams on December 13 at 6:49 a.m.
Money spent for a special session down the toilet. What a waste.
JBlim on December 13 at 6:57 a.m.
Orphan says: “The reason why we are a republic is to prevent 51% enforcing their will on the other 49%”
Typical Republican logic. Better to have the 49% imposing their will on the 51% . . .
DickAdams on December 13 at 7:57 a.m.
I have to laugh at certain fools who will not admit “both” parties are responsible for the mess in the state and country, that was caused in part, by their betrayal to the voters when the politicians obviously listened to the lobbyists rather than their constituents. The voters of course who voted name recognition, lacked the integrity to be responsible voters. Its apparent they did not spend time doing their homework like they should have and deserve what they get.
D Statler on December 13 at 8:22 a.m.
Tough decisions are hard to make. Good decisions are hard to make. Painful decisions are hard to make. Stepping back and taking a hard look is a good idea. Sometimes haste makes waste. Administrative cuts were mentioned in this round. This session was not a complete wash. Thanks to Mike for initiating the baby steps. Due caution with our weak economy is very important.
D Statler on December 13 at 8:32 a.m.
@ DickAdams, I couldn’t agree more with you on this one.There doesn’t seem to be alot of difference between the two partys anymore.
johnclarke on December 13 at 9:47 a.m.
Orphan on December 13 at 6:19 a.m.
Oneanddone
Using the popular vote to bust the log jam would turn our republic into a democracy, not a good idea. The reason why we are a republic is to prevent 51% enforcing their will on the other 49%
Golly gee, I noticed that the majority didn’t seem to have any issue with their agenda over the minority during the last administration. They simply used reconciliation to force through the tax structure that has been killing us for the past decade. Now that the tables are turned, they just filibuster everything that does not please Grover Norquist.
I am simply stunned that they are blocking the consumer protection agency. First they didn’t want Liz Warren because she can’t be corrupted, then they just block the agency’s director altogether so they can have bankers control the regulators. Awesome. BTW Orphan, presidential elections are pretty much always that close.
greyhound2 on December 13 at 10:02 a.m.
A recent study found that Congressmen spend 1/3rd of their time fundraising. Dialing for dollars. Crawling on their knees for a handout. The other 2/3rds of their time is spent on issues that are important to the people who gave them the money. For example, last spring, with the issues of unemployment, deficits and two wars, congress spent its time discussing banking “fees”. Why? Because that was an important issue for the banks who gave them the money. This system is not working for most people.
Orphan on December 13 at 1:40 p.m.
John Yes most presidential elections are historicaly pretty close that makes the founding fathers pretty smart guys.
You do realize that the system works both ways right. The democrats do the same things as the republicans do so most anything the republicans are oing now the democrats have done too.
Most of the complaining is done by the folks that are not getting their way at the moment, same with the finger pointing its kind of a sour grapes thing. All the more proof that the system works and works very well.
Remember things will always swing the other way at some point in the future, be carefull about the rules you want to live by..