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Gregoire offers no-tax budget for $6 billion shortfall

Thursday, December 18, 2008 9:37 PM PST

By Curt Woodward
The Associated Press

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OLYMPIA — Thousands of Washington state workers would be laid off, and the ones who remain wouldn’t get their promised raises. Students could wind up paying more for a pared-down version of college.

A pledge to give all kids health coverage would be delayed, and the safety net for disabled people would be severely sliced. More than a dozen state parks would be closed, and a ferry run eliminated.

As Gov. Chris Gregoire said, there’s a lot to hate about her proposed budget — and she agrees. But the Democrat, wading into her newly secured second term, believes raising taxes amid the worst recession in many years would have been even worse.

“There is no way to tax your way out of this problem,” a solemn Gregoire said Thursday, unveiling a 2½-year plan to solve a combined budget deficit approaching $6 billion.

Instead of plumping the state’s dwindling tax collections, Gregoire turned to a combination of spending cuts and money transfers, with a smidgen of borrowing and a bet that President-elect Barack Obama will offer states a bailout on costly social service programs.

Under Gregoire’s plan, spending cuts totaling more than $3 billion during the next 2½ years would be felt across state government, including K-12 and higher education, social services, prisons, health programs and pay raises. The budget would almost certainly lead to layoffs — perhaps 2,600 state workers in 2009-2011, Gregoire said.

Her plan would leave the state’s operating budget with a balance of about $400 million at the end of the 2011 fiscal year, but officials said future reductions in state tax collections could eat up that balance.

Gregoire cast the national recession as both the culprit behind Washington’s deficit and the reason not to raise taxes on consumers and businesses. Gregoire said she hated her budget’s cost cutting, but felt hamstrung by the poor economy.

“We have to live within our means,” she said.

The proposal immediately drew howls of protest from all corners of the state, particularly among interest groups who benefited during the Democratic governor’s first term, when state spending jumped by about a third.

The Legislature, controlled by Democrats, convenes Jan. 12 to begin its work on the two-year budget. Unlike Gregoire, majority lawmakers have not explicitly ruled out some form of tax increase.

Some leading Democratic legislators had harsh reactions to Gregoire’s plan. Senate Majority Leader Lisa Brown, D-Spokane, said counting on federal money to fix social services was a “glaring flaw.”

“I’m concerned that the governor made it look easier than it’s going to be in a critical area that we care about: caring for children and vulnerable people in Washington,” Brown said.

Republican lawmakers were upbeat. In fact, they were some of the only people smiling after Gregoire’s budget was unveiled.

“She’s done the right thing in not adding taxes or fees,” said Rep. Gary Alexander, R-Olympia, the House GOP’s budget chief.

As expected, Gregoire would help bridge the deficit by suspending, at least partially, two voter-backed education initiatives. Teacher pay raises would be skipped entirely during the 2009-2011 fiscal years, and money for reducing class sizes would be cut by about a quarter.

Gregoire wants to drop pay raises for state workers, who recently wrapped up contract negotiations calling for average yearly raises of about 2 percent, and raises for home-care workers.

Skipping the raises for teachers, state employees and home-care workers would save about $680 million over two years, Gregoire said.

Gregoire’s budget also would delay stepped-up training for home-care aides, the most expensive chunk of Initiative 1029, which was approved just last month.

She also would tap about $600 million from the state’s new Rainy Day Fund, created by voters for budget emergencies, and pull about $204 million in lottery proceeds out of the state’s construction budget, replacing it by selling bonds.

Higher education would take a hit, with across-the-board budget cuts of 13 percent at four-year schools and 6 percent for community and technical colleges.

Students would pay more to help fill that gap, with proposed tuition hikes for resident undergraduates ranging up to $450 per year, but Gregoire also proposes a bump in financial aid.

Big chunks of savings will come from social and health services, which are seeing overall cuts of more than 12 percent.

Money for the state’s Basic Health Plan, which provides health care for people making less than $22,800 a year, would be cut 42 percent, and enrollment reduced. The projected savings: $252 million. Plans to add more children to state-subsidized health care would be rolled back.

Gregoire also would end cash payments and treatment subsidies for disabled people and addicts who cannot work.

Eliminating those grants would save about $161 million, and cutting health coverage saves another $251 million — although Gregoire said health coverage for old, blind and disabled people under the program would continue, along with those who qualify for Social Security disability.

Highlights of some of the cuts suggested in Gov. Chris Gregoire’s budget proposal:

HIGHER EDUCATION: Gregoire proposes a $300 million reduction in higher education, including a 13 percent reduction for the state’s research and regional institutions. Community and technical colleges would see a 6 percent cut. This could mean higher tuition, fewer courses, larger class sizes, and reduction in faculty. Raises for faculty and staff also are suspended.

K-12 EDUCATION: Suspends nearly a quarter of the money from the voter-approved initiative to ensure smaller class sizes, and suspends the entirety of another initiative for cost-of-living raises for teachers. Maintained is $12.2 billion for basic education services, like special education and transportation, which is protected.

PUBLIC SAFETY: Gregoire proposes eliminating the requirement to supervise misdemeanor criminals and low-risk felony offenders once they are released from prison, saving nearly $70 million. Sex offenders and violent criminals would still fall under supervision. She also proposes early release for elderly and ill criminals, and deporting non-citizens who have property or drug offenses.

HUMAN SERVICES: Gregoire suggests saving $160 million by eliminating grants to people in the General Assistance-Unemployable program. About 21,000 people, as well as 6,500 people in a program for alcoholism and drug addiction, would stop receiving assistance. Another proposal would discontinue the Adult Day Health program, which serves about 1,900 elderly and adults with developmental disabilities, saving about $20 million. The federal government will stop providing matching funds for that program in June.

HEALTH CARE: Gregoire wants to continue providing access to health care for low-income residents, but is calling for a $252 million reduction in the state basic health plan, a 42 percent reduction. Medical coverage would also be eliminated for those in the general assistance-unemployable program, and the state would no longer purchase vaccines for children not covered by Medicaid. Also suspended would be subsidized health care for children whose family incomes are between 250 and 300 percent of the federal poverty level.

PUGET SOUND: Gregoire is seeking more than $284 million for Puget Sound recovery projects, including hatchery production and toxic prevention and cleanup. But she suggests closing 13 state parks, and closing other state parks during off-peak winter months. She also calls for eliminating money for geologic hazard studies on slope stability and tsunami evacuation routes.

TRANSPORTATION: Gregoire is seeking about $985 million for transportation projects and maintenance around the state, as well as $125 million for congestion relief efforts. But she’s seeking to eliminate the Sidney, British Columbia-San Juan ferry route by the end of September to save more than $9 million. An additional $1.3 million in savings would come from switching from a 48-auto passenger ferry to a 34-auto passenger vessel on the Point Defiance-Tahlequah route.

OTHER CUTS: Closing the state visitor center, and halting the training of National Guard members as firefighters, since they’ve been deployed overseas.

Budget: cuts, transfers, fed bailout

THE PROBLEM: Continuing Washington state government’s current path over the next 2½ years would cost about $5.7 billion more than the state expects to get from dwindling tax collections. Gov. Chris Gregoire expects revenue to fall even further this spring.

HER SOLUTION: Keeping her re-election pledge, the Democratic governor is asking the Legislature to approve a no-new-taxes budget that bridges the gap mostly with a combination of spending cuts and money transfers.

THE BIG CHUNKS: Cuts of more than $2.5 billion in the 2009-2011 budget, touching education, health and social services, and other state programs. Wiping out planned raises for teachers and state workers gets about $680 million, and tapping the new Rainy Day Fund yields about $600 million.

HEY, MR. PRESIDENT: Gregoire also assumes about $1 billion in aid from the federal government, once President-elect Barack Obama takes office.

WAIT, THERE’S MORE: Service cuts and raiding several smaller state accounts in the next six months brings about $460 million. Changing the formula for pension contributions drops costs by about $400 million. Using bonds to replace cash swiped from the construction budget, stronger enforcement of tax laws, and increased liquor sales combine for another $365 million.

WHAT’S NEXT: The governor proposes, but the Legislature disposes — lawmakers convene Jan. 12 to begin their own run at the budget problem. Democrats have fat majorities in both chambers, and they’re sure to change Gregoire’s proposal. That could include some form of taxes, but initiatives make it hard to pass tax hikes and Gregoire isn’t interested in them unless voters get the final say.

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TDN Bad Boy wrote on Dec 18, 2008 10:12 AM:

" Well all you Liberals and governor lover, here are some words I'll bet you never thought I would say. She's no longer Da Tax Queen (unless she signs any tax bill after the Liberals in Olympia pull their shenanigans). Good move to roll back those salaries for teachers and other govt. employees. Don't you agree Proud Teacher? Didn't see anything about her salary though.? I guess she sees herself as needy. What do you think Proud Teacher? Shouldn't the politicians take a hit if you do? I'll bet you don't think very much of your good Liberal governor now, do you? The biggest problem I have is the delay in implementing a voter initiative. The power of the voters should never be overruled this way. This was an instruction from the people to the governor. She doesn't like paying attention to what people want. And I guess her legacy is going to be that she gutted healthcare to the needy. And when the first low-level criminal becomes a high-level one the credit will go to her. Good job Gov. You finally took the scissors to some very meaningless Liberal programs. "

crowsfeet wrote on Dec 18, 2008 10:20 AM:

" With all these cuts to try and save the state, why do our local leaders think everything is ok? Pull your heads out folks. "

JUST ME!! wrote on Dec 18, 2008 10:43 AM:

" Sitting back and watching. "

kalama river resident wrote on Dec 18, 2008 10:49 AM:

" So she wants to pull about $204 million in lottery proceeds out of the states construction budget, replacing it by selling bonds. HELLO- just who is going to buy those bonds??? HaHaHa the bond market is DEAD, nobody is willing to risk their own capitol buying state issued bonds!!! California already tried that, nobody was willing to buy them, why do you think California is hurting so bad-because they can not raise capitol. Can you say bankrupt!!, states do not have the luxery of printing their own money. Cities, counties,and states are all forecasting major budjet deficiets, and none can raise capitol. Still think 20% unemployment is out of the question?? How about 25%?? The dollar is doomed!! "

Proud Teacher wrote on Dec 18, 2008 10:50 AM:

" BB, we all have to do what we need to do to get through this. It isn't the first time I haven't had a pay raise, and I doubt it isn't the last. It doesn't concern me if it's for the greater good! There you selfish jerk, deal with that! I am very proud of OUR governor! She is making the best of a bad situation. Unless you plan on moving, she's YOUR governor too! You live in Washington, and Christine Gregoire is the governor here. Did you secceed and form your own country? Considering you can't seem to decide if you live in Washington, Longview or whatever, that is dicstinctly possible in your deluded brain. All of us have to make sacrifices for the greater good. If you ever listen to anyone who survived the Great Depression, that's exactly what they did. But since you don't give a hooey about anyone outside of Longview/Kelso, I guess you aren't patriotic enough to care about the rest of Washington, and our great country. Just remember she is doing what she needs to do, even though she is overturning a voter-mandated program, which technically is in violation of the Washington State Constitution. Oh, I forgot-you conservatives don't believe in Constitutions. So it's okay with you, right BB? "

stink wrote on Dec 18, 2008 11:28 AM:

" She overturning things the voters approved!! Shameful. "

kalama rose wrote on Dec 18, 2008 11:51 AM:

" I always tell myself not to read these silly posts...but it's like a train wreck...hard to look away. Haven't heard much out of you lately BB...could it be because you and other ultra conservatives are hanging your heads in shame??? With only a little over a month to go, one would think Bush could do at least one little thing to erase what a farce his terms in office have been, but NO. After nearly being pelted with a shoe he has the audacity to say with his characteristic smug smirk "Yeah, so what?" January 20 can't get here fast enough! "

TDN Bad Boy wrote on Dec 18, 2008 12:27 PM:

" Kalama Rose, where have you been. I've been right here on a daily basis. Ah yes that evil Pres. Bush. How in the heck could he order a snow storm for Western Washington on his final days in office? He's evil isn't he? Not exactly sure what your comment has to do with the Liberal gov's budget cuts. Yes we are all waiting on Jan. 20. Isn't that the day, ALL of the troops will be coming home from Iraq? Isn't that the day we can expect that middle class tax cut? Won't that be the first day that I don't have to pay for healthcare for my employees? Won't that be the first day we will all have cars that won't depend on foreign oil? Yes your Messiah is on the way. I can't wait to see how disappointed all you Liberals are going to be when the troops stay in Iraq, there is no tax cut but rather a hefty tax increase for all making more than $20,000, there is no healthcare, and the price of gas goes back up beyond $4. "

SM wrote on Dec 18, 2008 12:33 PM:

" Somehow I doubt that putting tons of government employees on unemployment will help the economy but I guess you've got to do what you've got to do to balance the budget. "

TDN Bad Boy wrote on Dec 18, 2008 1:02 PM:

" Proud Teacher, let me try this again. Frist repsonse didn't make it. You know if she had promised this during her election heck I might have voted for her. This makes her a good Republican governor. Still you avoid my question. Since she is demanding that you give up your raise for the "greater good" as you put it, you never respond to my position that she doesn't see herself as needy. In all seriousness, are you against the politicians who dug this hole, who lied during the campaign about what they would cut, taking a pay cut? Don't you think it would be mighty big of the governor, if she asks you to forego your 2 or 3 percent raise, if she gave back some of her salary? Still I think with this proposal that the Republicans might nominate her for a third term. Whaddaya think about that Liberals? "

ucrackmeup wrote on Dec 18, 2008 3:08 PM:

" So no new taxes but she is cutting in places that are important, education, health care, human services, what in the world is she thinking? "

golfer wrote on Dec 18, 2008 3:17 PM:

" tdn....There is nothing Gregoire can do that would satisfy your neocon persona. She makes drastic cuts here & there & you still snivel. Tell me how many Republicon governors are taking salary reductions, & don't rant on about them not affecting our state. It will take Obama 4 years or more to right this sinking ship, that Bush has put a gaping hole in. The absolute worst president in history, & he will be remembered for just that. "

TDN Bad Boy wrote on Dec 18, 2008 4:05 PM:

" Hey Golfer, I am perfectly happy with this except for one thing. Like Proud Teacher pointed out she is probably ignoring the state Constitutition by delaying the inactment of the initiative. But the Liberals have done that before so her tactic is nothing new there. And what don't you get about my call for salary cuts. I don't care if it the governor is Republican or Liberal, if you have a state budget that is in the hole, the first thing that should happen before jobs are cut, raises are taken away (OK, not in the case of Proud Teacher) or services are cut is that salaries should be frozen at some percent should be forfeited. For all politicians above the job cuts. That isn't just for Liberals, although you seem to think that is what I want. No. I want all politicians to have their finances tied to their decisions. I guarantee you that if you did that you would have a lot better run government than we have now. But you know what, it's too practical of an idea for people who don't run businesses their own business to accept. If you run your own business you had better do it better than she did the state budgt in the past four years or you will lose that business. And by the way, I blame Bush for certain things, and I blame her for certain things. This isn't just Bush's fault. She overspent the budget, not him. "

jtj110 wrote on Dec 18, 2008 5:05 PM:

" WOW,I guess my wifes union dues went to support Gregoire for another year. WEAPAC has for another year sent money that way just to be let down again. I don't know what the heck people think teachers make but I think they have no clue. So let me clue you in, try 40,500 dollars a year. Only after making it 5 years up the pay scale. Take away 1300 dollars of medical insurance for the family every month, and the 500 dollars a month she spends out of her pay check to pay for items in the classroom to teach children that she is not related to, putting up with parents who think teachers are nothing but glorified babysitters, legislaters who keep mandating more standards, students who haven't been taught how to behave and respect other people, and then all the money that is required to keep her teaching certificate current. Teachers are considered life long learners and constantly are required to go to classes. By the time she sees her pay check, she brings home about 1900 dollars a month. By the Federal Government guidelines that is considered below poverty level. Yeh, Gregorier is a glorified liar, she told WEAPAC what they wanted to hear, took the money, and ran. It is really sad that teachers are required to do more in their profession, are in the publics eye to be criticized more than politicians and yet they make about as much as someone who works at Walmart. "

1980mustang wrote on Dec 18, 2008 6:09 PM:

" Not to worry if your the state empolyee not getting laid off because you will get all the overtime you want.. I have been seeing that first hand for about a month now just burns my ass... I am a laid off state empolyee.. More and more lay offs coming "

all-right wrote on Dec 18, 2008 7:11 PM:

" he..he..he.i love it,go get um bad boy.it's the socialized heath care cost's that's killing the budget too.asking the feds for a billion dollar bailout.just a prelude to social health care.the teachers should probably check out what teachers make a yr. before wasting their money on college to become one. "

jtj110 wrote on Dec 18, 2008 7:41 PM:

" all-right I am still paying off a 64,000 dollar loan for my wife's education to be a teacher and they want the teachers to take a pay cut that will take them over 20 years to pay off their loans. "

Gondolapete wrote on Dec 18, 2008 7:43 PM:

" Gregoire is a failure...relying on a bailout.. "

TDN Bad Boy wrote on Dec 18, 2008 8:04 PM:

" jtj110, I wish I could feel your pain but I can't. You and your wife got what you voted for. All the teachers are getting what they voted for. They all knew that the Liberal gov was lying through her teeth about Rossi and yet they bought it because of what she promised the unions. Well live with it. Wouldn't it be great if the teacher's union started a recall petition. Man that would be hilarious. Hey you don't see her feeling your pain. The honorable thing for her to do would be to announce that she is taking a 10 percent pay cut and challege every state employee above the job cuts to do the same. Will she? No. A liar knows know honor. Well live with it. The teachers ae getting what they deserve for listening to her lies. "

jtj110 wrote on Dec 18, 2008 8:40 PM:

" My wife and I did not vote for Gregorie last time or this time. People should not make assumptions unless they know all the facts. There are a lot of teachers who did not vote for Gregorie. They do not support the unions decision to support her basically because she did not follow through with the promises she made the last time they supported her. Please don't put all teachers in the same category. As for checking out what teaching is about before making the choice to become one, you do but it does not matter. A teachers job description, pay, and responsibilities change from year to year. The legislaters change the rules every year. Can you think of another profession where what you signed up for isn't what you get but your stuck with it? "

vikingtwin5 wrote on Dec 18, 2008 8:47 PM:

" TDN Bad Boy;Following your "logic" when unemployment was low,tax revenues were rolling in and things were going pretty good in Washington, did you ever say "boy, Chris is doing a pretty good job, I think she deserves a big raise"? Did you? Didn't think so. There's a word for people who talk out both sides of their mouth, two-faced hypocrites. "

vikingtwin5 wrote on Dec 18, 2008 8:55 PM:

" jtj110;I think more than a few servicemen were surprised to learn they would be staying in uniform longer than they expected or signed up for. "

SomeGuy wrote on Dec 18, 2008 9:31 PM:

" TDN Bad Boy: My wife is also a school teacher and neither her or myself voted for Chris this election or last. I agree with most of what you say in these forums but please do not lump all teachers together. They can think for themselves. "

golfer wrote on Dec 18, 2008 9:59 PM:

" It doesn't matter what the Gregoire does, she can do no right in the Republicons eyes, even if she were to cut her own salary. BTW, tdn, you & your neocon ilk, could care less about the constitution, so your argument is not valid about such. "

1arealocal wrote on Dec 19, 2008 12:43 AM:

" RE: golfer...stay with golf you dont have a clue what your talking about. You are a typical leftist drone. Bush is a hack, and so is the majority of his cabinet. Bush and Obama might as well hold hands because they are the same...liberal, constitution shredding, leftists. OUR government is violating the constitution as we speak golfer. The federal government has no business in profit taking from private companies like it is doing by the pork-barrel bailouts. Our "elected" officials may as well be called, nobles, lords, and dukes. That is what our great political machine has become, an aristocracy "

golfer wrote on Dec 19, 2008 10:09 AM:

" 1arealocal....And of course you know all about the situation, is that right? A typical right wing sheeple. Considering pork, it will always be there, whether it is done by the left or right, so get used to it. You sound like the kind who would be perfectly okay with driving on chuck hole roads & hiways. "

TDN Bad Boy wrote on Dec 19, 2008 10:59 AM:

" I understand that not all teachers voted for the Liberal gov. But you are part of the union and that union heavily supported the Liberal gov. I saw one exit poll that said teachers voted for her, 3-1. So to those of you in the 25 percent group, I don't mean you. Still she lied to every teacher she promised a raise too. How about that 25 percent start a recall petition. I'll bet that would go over big with the union. I know what I would do if I were a teacher. I would be fighting the union every step of the way. They want my dues? I don't think so when they back a lying Liberal. But keep giving money to that teacher's union. They are doing a great job for you. "

TDN Bad Boy wrote on Dec 19, 2008 11:10 AM:

" Vikingtwin, I have no say when the Legislature gives itself a pay raise. We don't get to vote on them, although I bet if that idea were ever put into an initiative it would pass with about 70 percent of the vote. My point in these cuts has always been that the salaried people like the Liberal gov and ALL -- not just the Liberals -- should take a pay cut before they do things that affect teachers and the needy. By her non-action as far as her salary, the Liberal gov is saying that she is more needy than all of the groups or services that she is forcing her cuts on. The honorable thing would be to take one for the team but we all know that there is no honor among thieves and politicians who accept full pay during times when they are cutting others are thieves. "

Proud Teacher wrote on Dec 19, 2008 11:27 AM:

" Yes, the teacher's union political action committee backed Gregoire, just as building and construction political action committees backed Rossi. But to anyone out there who thinks every union member marches in lockstep, you are dead wrong. The union political action committee can endorse, but as long as our tradition of a secret ballot endures, we don't have anyone-union officials, religious leaders or disgruntled local business people holding our pencil marking our ballot. There is much more to the teacher's union than political lobbying. In fact, lobbying and political fundraising are completely separate from our union dues. Check it out. "

TDN Bad Boy wrote on Dec 19, 2008 12:40 PM:

" You can argue the facts all you want but during her victory speech the Liberal gov talked proudly of the "partnerships" she had built. Everyone knows exactly what "partnerships" she meant. All you have to do is look at the campaign funds. The teachers union was one of the biggest. And I don't care if the money was voluntary which by the way it took a major lawsuit that the union fought all the way to make that happen. The Liberal gov promised raises for those votes. She lied. Nothing more needs to be said. She lied. The one thing we will never know is whether Rossi could have lived up to his word. He said he could balance the budget without hurting the needy. It's obvious that the Liberal Gov doesn't care about the needy as she said in the campaign. Like I said before, this budget proposal won't sail past the Liberals in Olympia, and she will agree to raise taxes in the end. She could veto it but she won't. PT, how come you have never answered my question about the Liberal Gov's salary? She asking you to sacrifice. Don't you think the politicians should too? "

golfer wrote on Dec 19, 2008 5:46 PM:

" tdn...You use the word "liberal", like it is a bad word in your vocabulary. Do you think it offends us "liberals" when you use it? I notice you don't use any name to define Rossi, the two headed monster. "

vikingtwin5 wrote on Dec 19, 2008 9:46 PM:

" TDN; you never answered my question, did you ever say or think that the Governor deserved a raise when the economy was good? Otherwise you're still a hypocrite. Go back through the archives, show me where you blogged it and I will donate $50.00 to the charity of your choice. "

vikingtwin5 wrote on Dec 19, 2008 10:43 PM:

" TDNBB;Trivia question. What state, governed by the far-right's favorite pin-up girl, is facing a multi-billion dollar budget deficit? Answer: Alaska. Wonder how that could have happened. "

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