When things go sour for Washington’s budget, they go sour fast. It’s happened before, and it’s happening again. A budget shortfall that was a puny couple hundred million dollars at the beginning of the summer has grown to $2.6 billion.
The shortfall could be quickly beat back down to $200 million with two steps: First, end state support for the University of Washington and Washington State University; then, close all community colleges.
That seems a tad dramatic. Still, a Democratic lawmaker says to expect something drastic.
“I think we will be making both cuts nobody ever dreamed of and probably revenue options nobody ever dreamed of, because we are truly in unprecedented times,” said Bellevue-area Sen. Rodney Tom, vice chairman of the Senate budget committee.
The still-developing deficit is reminiscent of last year’s fast-climbing shortfall, which leaped by a billion here and a billion there and ended up at real money, $9 billion.
Lawmakers, helped by federal stimulus money, closed the gap without a general tax increase. The new shortfall won’t approach $9 billion (unless the economy collapses), but it may be tougher to erase than last year’s.
Legislators already have made deep cuts, they can’t rely on another federal bailout and there’s less time left in the two-year budget cycle to achieve savings.
Plus, the shortfall might increase.
In the past year, the state’s chief economist Arun Raha has consistently overestimated tax collections and the strength of the economic recovery. A forecast he made Thursday was his sharpest revision yet — a $760 million decline in projected revenues over the next 18 months.
“One perk of being an economist is that, unlike accountants, we regularly go back and change our numbers without being sent to prison,” Raha said dryly.
Democrats have the burden of guiding the state through this budget crisis. They must decide where to cut and whether to raise taxes. If they want to raise taxes, they must decide whether to submit a proposal to voters or take it upon themselves to amend a citizens initiative and raise taxes with a simple-majority vote.
After hearing Raha’s forecast, Tom and House Finance Committee Chairman Ross Hunter, D-Medina, offered familiar ideas for raising revenue — nothing unprecedented.
Tom mentioned “sin.” It’s a long-standing practice to raise taxes on smoking and drinking, and expand state-run gambling when lawmakers face a deficit. But Tom zeroed in on fattening foods. He talked about “attacking cost drivers” and taking “personal responsibility” for keeping off pounds that cause health problems.
“We can’t all expect to go out to the Cheesecake Factory and have 2,000-calorie desserts and be able to be a healthy society. It just doesn’t work. The math isn’t there,” said Tom, whose lean frame suggests he passes on dessert.
Tom and Hunter also talked about closing “tax loopholes.” There’s always talk about that, with little effect. Pressed to be specific, Hunter demurred.
“I’m not going to go there because this room is filled with lobbyists, all of them representing the people who have those loopholes, and I, quite honestly, don’t want them to spend between now and the time there’s a vote working on my members, confusing them,” Hunter said.
The room was actually almost empty, expect for reporters and Kalama Rep. Ed Orcutt, the lead Republican on the Finance Committee. He defends tax exemptions as tools that create jobs and bristles at the words “tax loopholes.”
“I actually abhor the term,” he said.
Democrats have rejected a suggestion by Sen. Joe Zarelli, R-Ridgefield, to convene a special session in December to get a jump on getting the shortfall under control.
Hunter said budget decisions in December would necessarily be made in a “backroom” because there would be no time for Democratic budget writers to consult Republicans or the public. “You would have relatively little input from anyone other than three or four people,” he said.
To that, Zarelli quipped: “I don’t know what’s the difference between the regular session and what he just described.”
Hunter shrugged and looked sour.
Don Jenkins can be reached at djenkins@tdn.com or (360) 501-2713.
Posted in Opinion, Columnists on Sunday, November 22, 2009 12:00 am Updated: 2:00 pm. | Tags: Don Jenkins
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