April 26, 2006
How do you turn $940 million in savings into a $718 million deficit?

Let Mrs. Gregoire1 and the Democrats in the legislature manage the money.

Mrs. Gregoire, March 31 "DELIVERED: Fiscal Responsibility, Targeted Investments"

The budget saves over $940 million and makes targeted investments in ...
The Associated Press, April 25: "Olympia eyes red ink":
State Office of Financial Management projects a $718 million hole in the upcoming two-year budget ... Last month, Gregoire and majority Democrats decided to spend about a third of the surplus and put the rest in various reserve accounts, knowing that a deficit was likely to develop next year. Republicans warned against spending increases, but Democrats defended their choices.

1 Has never held a job in the private sector.

Posted by Stefan Sharkansky at April 26, 2006 08:40 AM | Email This
Comments
1. Private sector experience and/or a degree in economics should be a requirement for the job.

Posted by: ronin551 on April 26, 2006 08:50 AM
2. Shark,

That's what you get when you put a very poor, but cynically opportunistic lawyer in charge of any budget-- large or small --DISASTER.

Posted by: Amused by liberals on April 26, 2006 08:51 AM
3. '05 state revenue up 6%.
(Thanks the growing economy based on the Bush tax cuts).

Total state taxes up ??% between the gas, property and other user fees and taxes the total tax burden is increasing at an ever increasing rate.

With the supplemental budget spending up 16%.

Lesson that I learned when I got mine first allowance. You can't spend more than you receive.

I learned that when I was 4.

Gregoire and the Dems still have not learned that.

Posted by: JCM on April 26, 2006 08:53 AM
4. From the full AP story:

"The governor doesn't want to raise taxes and doesn't think we have to," he (Moore) said.

Now, where have I heard that before?

Posted by: jimg on April 26, 2006 08:56 AM
5. How about THIS wonderful and revealing comment.

"I wasn't prepared for a number that big," Senate budget Chairwoman Margarita Prentice, D-Renton, said Tuesday.

Posted by: Jason on April 26, 2006 08:59 AM
6. Well Duh. Of course this would happen.
I will say it again
Liberals: Generous with your money and liberty
Conservatives:Generous with their own money and not generous with their or your liberty.

Posted by: Jason Woodruff on April 26, 2006 09:02 AM
7. This story validates the democratic led legislature's decision to save the bulk of the current surplus in anticipation of future shortfalls - only one/third of the surplus was allocated. You can't simply stop investing in those things (schools, police and transportation) needed to run a state effectively because of the prospect of future shortcomings. This story is about what "might" happen in the future. I trust the legislature, if it remains in democratic hands, will act responsibly - as it has to this point.

At least our state government is not wasting our money fighting pointless wars.

Also, if you're so concerned about our state's budget, let's do away with all the gibberish about eliminating the state estate tax.

Posted by: MaryL on April 26, 2006 09:09 AM
8. I hope the Democrats don't call a special session to deal with the shortfall.

The Rs will eat them for lunch. At least, I can only hope leadership understands this.

Posted by: swatter on April 26, 2006 09:16 AM
9. Gee, MaryL, why is it that I believe you'll never have to worry about having anough in cash or assets to concern yourself with the estate tax?

That said, the d's lied. R's told the world the democrats lied. Their lies have been confirmed.

And, MaryL, by the way, could you can the gratuitous war crap? I mean, you leftists are all about deflection, but the war issue really is off topic here.

Posted by: Hinton on April 26, 2006 09:18 AM
10. MaryL,

You clueless twit!

Revenue is up 6% spending up 16%!

You call that a "validation" of the dems spending plans? Only incompetent morons can run a budget like that.

State government not wasting money?!

Where have you been, what have you been smoking.

Go look at the auditors reports, if you can read. My current pet peeve is DSHS (I am a foster parent), the budget is up, DSHS spends on elective surgeries, but services to the children are being cut.

Explain that, try but you won't be able to. The Gov's office didn't even try she blame the legislature (I have the letter).

You are the umpteenth troll without the guts to post a real email to try to segue into the War. Click on my link and refute a single fact there. Not one troll has been able to yet.

Simple challenge. How is a 16% spending increase in any way rational, or good governance in the light of 6% revenue increase.

Posted by: JCM on April 26, 2006 09:22 AM
11. MaryL;
You say that the Democrats "state government is not wasting our money."
Lets see
1. Had to vote for more money for our local schools because they are not getting enough funding?
2. Transportation issues Sorry but not one dime of the increase went to help with our "Transportation Emergency" that we have to pay more money on gas tax and Gas prices are rising daily and some of that rise is due to new gas tax increases. Sure easy to blame the oil company when you raise the gas tax and price of gas goes up.
The bottom line what happened to limiting growth of state spending that was voted by the people in the 90's Well with democrats in power at all levels they will increase at will and then demand an Income tax to pay for more social irresponisble programs that never solve the issue they only make them worse. Feel good programs should never take place. We need government programs that fixes issues. Not enable the problem to last for decades. Sure I am heartless. Let the local churches do the social work. They do it with less money and are much more effective at getting people on their feet permanently. Not leaving the people in poverty as government programs do.
THis hole is underestimated. I bet it is double what they are saying. They are trying to spin it. Just watch your politicians in action.

Posted by: David Anfinrud on April 26, 2006 09:37 AM
12. This is an issue where you bring the battle axe out...

Posted by: Reporterward on April 26, 2006 09:41 AM
13. The surplus was just that - a little extra short term income. Even with it, shortfalls were predicted.

To create NEW spending programs that require long term funding just because you have a short term surplus is stupid - it isn't smart.

There are only two ways to solve the forthcoming shortfall:
1) Reduce spending.
2) Raise taxes again.

We have already had two disgustingly large tax raising sessions with Gregoire, one or two more would seal her fate for reelection, and for the next couple of years, on July 1st, we're reminded of those increases. For those of us in the RTID danger zone, we will have more tax increases to think about as well.

Thank you Democrats, you really are living up to your self imposed tag of "Tax and Spend".


Posted by: SouthernRoots on April 26, 2006 09:41 AM
14. Mary L:

See definition of Ignoratio Elenchi.

The rest of you:

Carry on.

Posted by: thecomputerguy on April 26, 2006 09:43 AM
15. With a Democratic majority in the Legislature, a Democratic Governor, and activist Democrat Judges on the court, Olympia is one big huge orgy with your tax dollars. They will do their best to run the state into the ground, and despite rhtetoric, raising taxes is something they are all more than willing to do. Afterall, they know what's best for us.

I wonder how much of that surplus went to truly wasteful and excessive projects?

I agree, and an advanced degree in economics and private sector experience should be prerequisites for government service.

Posted by: Jeff B. on April 26, 2006 09:54 AM
16. MaryL says "You can't stop investing in those things...needed to run a state effectively...."

Do "those things" also include sex change operations for welfare recipients?

Posted by: Saltherring on April 26, 2006 09:57 AM
17. MaryL,

Just because the Ds are far out spending tax receipts (with, among other things new programs) why do you feel that taking additional after-tax money through inheritance tax is fair? 'Having it' or 'able to' does not mean fair.

The left always say someone else has it or is able to do with less, therefore the government should have it. How about some of politicians cut back. The Nichols post here is a great example of where savings could start - take his three gas guzzeling cars away, have him walk or take public transportation like he tells us to do, then maybe he would be fitter and his health insurance wouldn't cost taxpayers as much. But no. Cutting back on the political elite is never an option when you can divide the citizens with they have it, we deserve it mentallity. Tax the rich!

Posted by: Fred on April 26, 2006 10:02 AM
18. Remember folks, the tax increases aren't over yet...we still have an additional 9-12 cent gas tax to plan on to finish what they started with the last two.
Depending on how the Republicans respond to this, it may be time to VIO...Vote Incumbents Out!

Posted by: Diogenes on April 26, 2006 10:07 AM
19. How many times do the R's and conservatives have to be proven right before the voting public wakes up? It happens over and over again, and nobody seems to learn the lesson. What a state of sheep!

Posted by: katomar on April 26, 2006 10:10 AM
20. A suggestion on how to run the state's budget:

List everything that the politicians want to spend our money on. Assign expenditure. Prioritize them. For example:

1 Fire/police/emergency
2 Schools
3 ...
.
.
.
578 Governor's salary
579 Government funded sex changes
.
.

Take the available money from taxes.

Take 5% and put it in reserve.
Allocate the rest going down the list. When the money runs out the programs don't get funded.

It would also make our representatives tell us the priorities. When Medic One is at the bottom of the list so that an additional tax needs to be added we will know.

This would work for all government spending...

Posted by: Fred on April 26, 2006 10:15 AM
21. Well, what do Gregoire or her political cohorts care? They paid off all their Democrat special interest groups who foot the bill for their political races with our tax dollars. they always use my tax money for political payoffs to their friends. Never mind that the average Washingtonian doesn't benefit from any of it.

Posted by: Michele on April 26, 2006 10:20 AM
22. Diogenes,

I prefer TBO...

Throw the B*st*rds Out, with a side order of tar and feathers, then run them out on the rail they are so fond of.

Fred,

Zero based budgeting. Every agencies bases there budget on last year plus what they think they need for the next. Make them justify their entire budget every year.

Posted by: JCM on April 26, 2006 10:23 AM
23. Welcome to Sound Politics, MaryL. When I read your post, at first I thought that you were terrible naive and really believed what you submitted. Maybe you do.

But then I considered that you are probably just stopping by to try to stir things up. Quite frankly, we do not need posts like yours to get us going. We are already ticked off at Olympia for a variety of reasons - excessive taxation and ineffective spending in particular.

As someone else has already posted, please try to avoid needless tangents or outright misdirections in your posts. We prefer to keep our discussions focused on the original subject matters presented. Quite frankly, your remark about fighting "pointless wars" has absolutely nothing to do with taxation and the Washington State budget.

Posted by: Gary on April 26, 2006 10:28 AM
24. Rep. Kathy Haigh (D-35) Mason, Thurston, Kitsap and Grays Harbor sadi that it was "fun" to have a billion dollars to play with when she spoke at a Economic Development Committee meeting in Shelton recently. Also said she doen't like politics but likes the work she does at the Legislature.

She the chair of House Govt Operations Committee....in charge of election reform.

Posted by: Old Faithful on April 26, 2006 10:35 AM
25. Rep. Kathy Haigh (D-35) Mason, Thurston, Kitsap and Grays Harbor sadi that it was "fun" to have a billion dollars to play with when she spoke at a Economic Development Committee meeting in Shelton recently. Also said she doen't like politics but likes the work she does at the Legislature.

She the chair of House Govt Operations Committee....in charge of election reform.

Posted by: Old Faithful on April 26, 2006 10:36 AM
26. "You ain't seen nothing yet!"

Next year, her priority is Health care with Gregoire saying she would have a solution by December..........

Last two sessions brought us almost 700 million in new taxes and a 17 percent increase in spending with only 6 percent increase in revenue.

She and her legislature are coming for your sin next, so that she can continue to claim that she hasn't raised taxes!

Posted by: sgmmac on April 26, 2006 10:42 AM
27. Mary Mary quite contrary,
How does your budget grow?
With excess spending and taxes spiraling,
And pretty bills all in a row.

Posted by: JCM on April 26, 2006 10:51 AM
28. Christine Gregoire had a cushy position with Foster Pepper Shefelman for a few months in early 1992, after she left as state Director of Ecology, while she was preparing to run for state Attorney General.

So Stefan's footnote of the day, while 100% correct in spirit, is slightly in error when it comes to technical details.

Although Stefan did use the word "JOB" -- which implies actually doing some WORK for the money being paid. So maybe Stefan is correct after all.

Posted by: Richard Pope on April 26, 2006 10:56 AM
29. 'Next year, her priority is Health care with Gregoire saying she would have a solution by December' This is quite correct. The Dems are canvasing for signatures on a petition 'demanding' that everone be covered. When I queried the little weasle that stopped by my home how this was to happen the only thing he could say was; 'we are demanding that the politicians pay for it.' WTF is this clown swerious, politicians don't pay for anything. if the truthe be known, he wants the politicians to extract money from my wallet to pay for health care insurance for someone who was lifting beer and bongs while I was lifting textbooks!

Posted by: JDH on April 26, 2006 11:11 AM
30. Well, this should come as no surprise to anyone. It was well documented that the budget was not sustainable or fiscally prudent, and Republicans said so at the time. But according to the D's, we would be in the same predicament if the R's were in charge because they would have "spent" the same amount in the form of tax breaks. Uh-huh.

Posted by: Palouse on April 26, 2006 11:18 AM
31. I propose we implement a "near death" tax.

I don't want Gregoire to have to wait for old people to die before raiding their estates- and besides, these people are just hoarding money that rightfully belongs to children in need.

Posted by: Andy on April 26, 2006 11:23 AM
32. Andy: If we take the lead from liberals, the "near death" tax would take the form of euthanasia. Whack and tax for the service.

Posted by: katomar on April 26, 2006 11:34 AM
33. It seems my observations on the queen from her past are appropriate here again.

While at Ecology she doubled staff and budget, and reallocated traditional duties when the legislature finally said enough so she could whine for more money to do the traditional duties.

There is no bottom to this pit. She is and will bleed us out.

Posted by: swatter on April 26, 2006 11:40 AM
34. We should celebrate!

Federal Tax Freedom Day 3 days later than last year. We can celebrate again on May 4 when WA State has its Tax Freedom Day. Only NY, CT, and RI have latter Tax Freedom Days.

The Gov's goal is to be last ones to celebrate, at the current rate we'll be celebrating on Dec. 24.

Posted by: JCM on April 26, 2006 11:45 AM
35. When will the libs realize that the estate tax results in income concentration, not wealth distribution? Every study and analysis shows this to clearly be the case. Furthermore, there is substantial evidence that the collection of the tax and enforcement of policy is as or more expensive (depending on who you read) as the money brought in by the tax itself.

However, since it can be sold as a tax on the rich it seems like a good idea to those who would rather think they are doing something good than to deeply think about anything at all.

Posted by: Marc on April 26, 2006 12:36 PM
36. Marc, do you know of any research that has studied the economic impact of businesses and farms that have to be sold or closed due to the estate tax? The D's rarely acknowledge this, or acknowledge the people that lose their jobs as a result.

Posted by: Palouse on April 26, 2006 12:41 PM
37. "Elected Republicans and their legislative leaders nationwide have fallen prey to the natural temptation to view power as their birthright, rather than a reward for hard and righteous work. This explains why they behave like reckless heirs to someone else's fortune. It's a little difficult to mock Ted Kennedy or Howard Dean when George W. Bush can't even say no to peanut institutes in Alabama or gambling halls (rather than, say, repaired levees) in Louisiana."

Tony Snow

Posted by: Ringo on April 26, 2006 12:45 PM
38. Ringo-
Bingo! That's a huge problem in Washington DC that needs to be stopped.

It's also a huge problem in Washington State (specifically Olympia) that needs to be stopped.

Republicans need their butts kicked in DC and democrats need their butts kicked in Olympia. Agreed?

I can point you to about 30 different conservative blogs that are grilling republicans for wasteful spending right now and I can list a lot of republican congress members that are vocal and visible to try to fix the problem.

Can you list any progressive blogs, democratic state governors, or local democratic activists that are arguing to cut spending and bring spending back into line with taxes?

Posted by: johnny on April 26, 2006 12:54 PM
39. Ringo, two words: Ignoratio Elenchi.

Posted by: Obi-Wan on April 26, 2006 12:55 PM
40. Ringo - George and John are calling you. You'll gain a valuable life lesson if you continue to watch, read, and quote Tony Snow.

What is the "estate" tax rate in Washington?

What is the argument that "entitles" the state to confiscate upwards of 55% of someone's estate (albeit a "rich" someone)?

I can see how well tax shelters could shield the "cash", but what if the "wealth" was in property? How could the property be shielded?

Are estate taxes the state's expression that they really feel bad for not taxing you more when you were alive?

Posted by: SouthernRoots on April 26, 2006 12:59 PM
41. Ringo, I'm not really sure what your point is, other than to show that

1: People on Fox are critical of Rs/conservatives/Bush despite the trolls saying that it is a mouthpiece for the Bush admin

2: Conservatives are more than willing to openly criticize wrong instead of just the other side (like where is Pelosi/Reid/Shumar on the "culture of Corruption" of the top D on the ethics committee?)

Posted by: Fred on April 26, 2006 01:13 PM
42. Fred,

Your idea of setting priorities and then funding accordingly is a good one. What is truly sad (and is clearly turning out to be truly expensive) is that we HAD something much like this. Gov Locke and Dino Rossi worked together using a system much like the one you suggest (not exactly that straightforward or sensible of course). But the new team of ALL DEMOCRATS could not see fit to stay with what their fellow Democrat (Gary Locke) had started. And thus we started down the road towards what, 17% spending increases?

MaryL wants us to believe that this news is proof of why it was SOOOOO great that "one third" was left in reserve. Well to me this news shows that 1) a LOT more should have been left in reserve and 2) they should not have EXPANDED programs in ways that were clearly NOT SUSTAINABLE. But in MaryL's world there is always more revenue available to be "invested" so cover your wallets kids!

Posted by: Jason on April 26, 2006 02:08 PM
43. The 'point'is neither party has the balls to stand up to special interest groups..the sorry state of politics is such that whenever you have one party in control (as in Olympia & DC) ya got $$$ problems

Posted by: ringo on April 26, 2006 02:25 PM
44. Estate tax is for the explicit purpose of redistributing wealth. It’s one of the primary reasons family business are bought up by major corporations. The family can’t afford the tax when the founder dies so they have to sell. It’s also why some private companies are leaving the state. Food Services of America (a $2 billion company) just relocated to Arizona for the explicit reason of avoiding estate tax.

Posted by: ronin551 on April 26, 2006 03:27 PM
45. Palouse,

This is a good place to start: http://www.house.gov/jec/fiscal/tx-grwth/estattax/estattax.htm

For those who argue that the estate tax encourages charitable giving: http://www.nodeathtax.org/ECONOMICREPORTS/reports_0305.pdf (a posting from the Dept of the Treasury)

On net revenue: http://www.nodeathtax.org/ECONOMICREPORTS/reports_030730.pdf (from CONSAD Research)

I won't even go into the fact that in 2005, the NYTimes poll (I'm sure they weren't polling for a specific result or anything) showed 76% in favor of eliminating the estate tax. The only justification for it is for wealth distribution, only the wealthiest have the easiest time avoiding it so it doesn't even work for that. Bill Gates donated about $50b to the Gates Foundation--how much estate tax will he pay on that? (a goose egg should be coming to mind). He has that luxury, however, as he and Warren Buffet and everyone else that are concentrated in that plutocratic group the Left likes to demonize all have the same ability to get rid of their wealth before death. Gates or Buffet would only have to donate 100% of their estates to their foundations, then magically get hired for enough to keep them going by the same Foundation, and voila! No estate tax at all. But how counter-productive is that? Gates' money going to non-productive uses instead of investing in start-ups when he starts to teeter is not what anyone should want to see. Those with the jealousy streak that seems to infect the left so well, however, don't really care as long as the "rich" are "soaked" in accordance with their political (not economic--they don't really have one) agenda.

Posted by: Marc on April 26, 2006 04:13 PM
46. Another big reason to vote out the Dems in Olympia in November and some Repubs also - time for new blood before the existing cast of politicians bleed the people's wallets dry !

Posted by: KS on April 26, 2006 07:25 PM
47. We all knew this was going to happen.

It only takes a liberal's math curriculum from Washington state to see how a 6% increase in state revenue and an increase in state spending of 16% equals a surplus! Duh.

Posted by: Deborah on April 26, 2006 08:01 PM
48. I smell an "Emergency Tax" coming.

From the PI: "The forecast, based on current revenue projections for the next biennium, takes into account money for increased school enrollment, prisons and other state caseloads."

Could the increase be from a surge of illegal aliens? Naw, they pay more in taxes than they take out. Or at least that's what we are being told.

Posted by: Elaine on April 26, 2006 08:35 PM
49. Elaine, Re your "Emergency Tax" comment: I thought the same thing. they simply overspend, then put their hand up to their cheek in mock horror. "I'm shocked, shocked that we have a deficit. We must raise taxes now!!"

Posted by: Michele on April 26, 2006 09:06 PM
50. I would bet that a significant portion is from illegal aliens, but as long as we bend over backwards to reward bad/illegal behavior & cut deals with special interests - this kind of financial mismanagement will continue.

We don't need no stinkin' Emergency Tax - we need to enforce immigration laws on the books and Olympia needs to stop being Political correct wusses. They are corrupt and beholden to lobbyists, so the only way to accomplish that is to elect a new State Legislature and get rid of the corrupted Demo-rats !

Posted by: KS on April 26, 2006 09:32 PM
51. "I smell an "Emergency Tax" coming."

Hmmm.... The last "Emergency Tax" was supposed to go to fix the viaduct, various bridges, etc...because they were so drastically dangerous!! (gasp!)...Oh wait! We haven't fixed anything yet and we are already seeing red? (as in a negative surplus..).. I think the voters will be voting "RED" in November! (as in Republican)

Oh jeeze! I hear that liberal Democrat money sucking sound in the near distance!

Gregoire has a lot of 'splaining to do.....

Posted by: Deborah on April 26, 2006 09:50 PM
52. Can someone please help me...for the life of me I do not understand how the good citizens of Renton have continued to elect Sen. Margarita Prentice these past 30 years?

Is it her good looks? ...A perfect 36-24-36... and her other arm is about the same.

Is it her dizzying intellect?...Duh...I do not think so.

Is it her charm and easy manner?... Please!!!

Can someone please explain this to me? Is it the Fluoride in the Renton Drinking Water?


Posted by: Pacific Grove Phlash on April 26, 2006 10:02 PM
53. N.J. Voters Sour Quickly on Gov. Corzine

"A Quinnipiac University poll released Wednesday found Corzine's job approval ratings plummeted in April to 35 percent from 43 percent last month."

"Nothing kills a political honeymoon faster than the word `taxes,'" said Clay F. Richards, assistant director of the university's polling institute.

Someone might want to mention that to the illegitimate queen... um, nevermind!

Posted by: Cheryl on April 26, 2006 10:07 PM
54. Anybody want to bet the reason we have a shortfall is because we're under taxed? As a democrat or better yet, watch and learn as they prove me right and raise them.

Posted by: PC on April 26, 2006 10:18 PM
55. above was supposed to be "ask" a democrat. Sorry about that.

Posted by: pc on April 26, 2006 10:19 PM
56. Only if they are way in the hole can they come back demanding that 9% income tax they already have written up and waiting to vote on.

How else can they deal with their debt and their promises to bring free medical care to the whole nation, who will all move to this state the minute they pass the queens universal healthcare for all promise.

Posted by: GS on April 27, 2006 10:02 AM
57. Government's purposes:
Defense
Protect Sovereignty
Settle disputes (Judicial system)
Funding roads (but not building them)
Protect our rights
Lock up criminals
Vouchers for education until age 18

I may have forgotten something, but that should be it.
We shouldn't be raising taxes, we need to cut spending. This may mean that we need to sack a bunch of politicians.

Posted by: Jason Woodruff on April 27, 2006 10:37 AM
58. Where did it go, that projected budget surplus of a couple months ago? The surplus they divided up among so many eager outstretched grubby hands? Where did it go?

Posted by: Peggy U on April 27, 2006 04:12 PM
59. I smell a income tax to be proposed by the Democratic Party very soon.

Posted by: swassociates on April 27, 2006 04:30 PM
60. This is where Rossi would have been strong!

I wonder if he, as a private citizen, can launch an investigation into our state spending and budget? Maybe by way of an initiative?

Posted by: Deborah on April 27, 2006 06:50 PM
61. This will help Queen Christine's approval ratings - NOT ! She would do as well ride her broom (like cousin Hillary) in a PR ad.

Posted by: KS on April 27, 2006 07:17 PM
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