32nd District Democrats

Legislative Update

There are less than two weeks to go in the 2010 Legislative session, and all eyes are on the supplemental operating budget. Both the House and the Senate released proposals last week, and both make a substantial number of cuts – on top of the $3.2 billion already cut from the current budget – and both depend upon some new sources of revenue.

We in the House have not yet decided on a revenue plan. Instead, we have been concentrating on finding more cuts and more reforms.

We balanced the budget by shrinking government
As we discussed last week, there were serious reductions made last year. The Legislature has already cut $3.3 billion from the current budget. Additionally, the first three bills signed into law this year were all devoted to making additional cuts and efficiencies.

In fact, for the first time since 1949, the 2009-11 biennial budget is smaller than the 2007-09 budget.

That’s right – for the first time in 60 years, we produced a two-year budget that was less than the one before!

Over a billion dollars less, in fact. Here’s a sample of the cuts already made:

Area	Budget cuts
K-12/Public Schools	$795 million
Higher Education	$504 million
Early Learning	$12 million
Health Care	$780 million
Long-term Care, DD, Mental Health	$197 million
Other Human Services	$227 million
Corrections and Criminal Justice	$157 million
Natural Resources	$93 million
Other government costs	$99 million

A statement of our values
The state operating budget isn’t just a table of numbers. It is a statement of our values and priorities; it is our vision of Washington’s future. We know those numbers represent families and communities, businesses and schools.

The budget decisions we make today not only directly affect the current needs of students, seniors, foster children, the unemployed and people with disabilities, but they also shape our future. So we have to ask ourselves some very hard questions:
•    How will additional cuts to our schools and colleges affect the employment opportunities of the next generation? Will they be well-trained for the jobs in the changing economy?
•    Can we afford to eliminate health care coverage for even more people, forcing the expense onto community hospitals and emergency rooms?
•    Is a particular tax exemption or legal form of tax evasion more important than making sure our seniors have safe nursing homes and well-trained caregivers?
•    How will an increase in taxes affect our businesses and families?

Need for state services is increasing
While businesses lose customers during tough economic times, the demand for services like public schools, health care, emergency assistance, job training, and state financial aid increase – just when our ability to pay for them decreases.

Washington has seen a dramatic upswing in “caseload” – those who depend on state services. Parents are moving their children back into public schools, more students are seeking financial aid for college, people who have lost their jobs are asking for retraining opportunities. More seniors are finding their investments have been depleted due to the financial crisis that hit Wall Street and they need state assistance to pay for their long-term care. The housing crash is still forcing people out of their homes.

Although there are many signs that the economy is beginning to recover, experts believe Washington will continue to feel the effects of the Great Recession for months, if not a couple years.

$4.40 in real cuts for each $1.00 in proposed revenue
As of this week, the Governor, the Senate, and the House have all recommended filling a small portion of the remaining budget gap with new revenue. We will also take even deeper cuts in state services, lay off more workers, and enforce new government reforms and efficiencies.

How much of the gap are we looking to fill with taxes? About 10% of the 2-year total.

Budget cuts
Original 2009-11 cuts   $3.2 billion
2010 proposal               $0.65 billion
Total                              $3.85 billion       44%

Federal assistance
Original 2009-11           $1.9 billion
2010 expected               $0.65 billion
Total                              $2.57 billion     30%

Transfers (including Rainy Day fund)
Original 2009-11          $0.96 billion
2010 proposal               $0.47 billion
Total                             $1.43 billion    16%

Revenue increases
Original 2009-11         $0.00
2010 proposal              $0.86 billion
Total              $0.86 billion    10%

As you can see, we are considering $4.40 in real cuts for each $1.00 in proposed revenue.

Final decisions will be made during the next two weeks. Please feel free to contact me with any questions, concerns, or suggestions.

For more information on the proposed House supplemental budget: http://leap.leg.wa.gov/leap/budget/detail/2010/ho2010p.asp

Representative Maralyn Chase

State Budget Poster

Pie-charts explaining the state budget

File: PDF File (775.1 KB)

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