The State Budget: “Extremely Tough”

That’s how Gov. Gregoire’s Budget Director, Victor Moore, characterized the challenge state lawmakers will face in January when they return to Olympia and have to patch what he predicts will be a budget hole of between $750 million and $1 billion.

“Inside Olympia” host Austin Jenkins interviewed Moore and top budget writers in the House, Reps. Kelli Linville (D-Bellingham) and Gary Alexander (R-Olympia), following this morning’s latest state revenue forecast.   Watch the interviews at 7 & 10 p.m. this evening. Here’s a link to the show’s home page.

How will lawmakers make those cuts?  According to Moore, the Governor’s budget will have to look at wholesale elimination of discretionary programs.  Are new taxes a possibility?  “We are not looking at new taxes right now,” rather he’s working on a cut-based budget.

Linville said lawmakers need to squeeze everything they can out of government reform and efficiencies before shutting down whole programs — she cited the state’s General Assistance Unemployable (GAU) program as an example of a program that should be improved rather than eliminated.  Are new taxes a possibility?  She said the public is the key: Voters will likely have the final say on any tax hike, and unless the public is convinced lawmakers have adequately reformed government, “I don’t think taxes will pass the public interest test.”

Alexander advocated for “smaller government”  and emphasized the need for lawmakers to act early on the budget in order to maximize savings from budget cuts.  He was frustrated by last year’s budget, which he said incorporated no major reforms.  He said lawmakers need to pursue such reforms, including funding the state’s core  responsibilities first — in particular, public schools — eliminating non-core programs like GAU, and privatizing or contracting out state services.

All agreed there’s no need for a special session before January.  Lawmakers convene in Olympia on Monday, January 11th, for a 60-day session.

Tags: cuts, Inside Olympia, state budget, taxes