Gregoire says state costs are down $239 million

Tue., March 13, 2007

David Ammons Associated Press

Other issues at the Capitol

The governor also covered other topics during a news conference:

• Parks. The governor said she's not interested in taking control of the state park system, as House Majority Leader Lynn Kessler, D-Hoquiam, is suggesting. The current system is working well, with a citizen commission hiring the director, who runs the daily affairs of the agency under the commission's watch, Gregoire said.

Gregoire noted that the governor was recently given authority over the massive Department of Transportation and that there is no compelling reason to add still more duties to the office.

•Tribal gambling. Gregoire defended her support of a new gambling pact that allows more slot-style gambling machines in tribal casinos. The number is much lower than tribes initially thought they would get under federal law, she said. Gregoire said the pact limits the number of casinos and requires tribes to help finance problem-gambling and smoking-cessation programs, and to contribute to their host communities.

She also defended her decision not to ask the tribes to share profits with the state, as other tribal gambling states require. That would give the state an incentive to expand tribal gambling, she said. She did not answer a question about whether tribal contributions to Democrats caused her to be more generous with the tribal compacts, although an aide last week dismissed that.

OLYMPIA – Washington’s healthy budget picture has improved with news that state services will cost $239 million less than previously projected, Gov. Chris Gregoire said Monday.

The state already has a $1.9 billion projected surplus, and that is widely expected to grow some more when the state Revenue Forecast Council updates its numbers on Thursday.

Still, Senate budget Chairwoman Margarita Prentice, D-Renton, said she didn’t expect the news would set off a budgetary feeding frenzy among her colleagues.

“They wouldn’t dare,” she said. “They know better than that. We need to be prudent and responsible.”

The governor announced the lower projection of government costs after the state Caseload Forecast Council determined that caseloads are growing less quickly than previously projected. This includes school enrollment, prisons and various programs of the Department of Social and Health Services.

The pricetag for teachers’ cost-of-living adjustments will increase about $30 million, but overall, the total pricetag for covering caseloads will be down $239 million.

In practical terms, it means the Democratic-controlled Legislature will have that much more to spend.

Gregoire, a Democrat, has proposed spending about $1.3 billion of the projected $1.9 billion surplus as lawmakers write a $30 billion, two-year budget. That would leave about $600 million unspent, including about $260 million socked away in a rainy day savings account.

Lawmakers expect the Revenue Forecast panel to boost projected revenue beyond the $1.9 billion mark, perhaps by another $100 million or more. Actual revenue collections are up $68 million since the November forecast, according to a report released Monday.

The new projections would enable lawmakers to spend and save more than Gregoire has proposed.

House Democrats plan to release their proposed budget next Tuesday, ushering the spending plan through the full House by week’s end. Prentice releases the Senate Democrats’ plan the following week.