June 30, 2008
Washington State Budget Deficit Grows

The Washington Policy Center Blog has more on the expanded $2.7 billion deficit now facing the state in its next budgetary biennium. Given that ugly number, one would think Christine Gregoire would trot out some proposals to address that looming gap.

So far, only crickets - to this and previous deficit projections for the coming 2009-11 budgetary cycle.

Indeed, when asked about coming budget problems, Gregoire budget chief Victor Moore said:

"We know there is going to be some pretty significant belt-tightening that we are going to have to do in this budget," he said. "We understand that we are going to have some significant challenges, we are using the processes that we have used in the past to look at government spending."

Would that be the same process that brought us a 33% spike in state government spending under Gregoire's leadership?

Furthermore, when Moore was asked if the Governor's Office of Financial Management would run some fresh budget numbers given the latest state revenue projections (affecting the aforementioned$2.7 billion forecast from the Senate Ways & Means Committee), he responded:

"I'm not sure how useful that would be."

Courage.

Posted by Eric Earling at June 30, 2008 07:37 PM | Email This
Comments
1. What do you expect from Democrats. We have a solution but will tell no one. So there is obvious no plan, no attempt to cut budget and will demand more in tax revenue to make up the differend. SOunds like Michigan. And they are in a recession.

Posted by: david Anfinrud on June 30, 2008 08:02 PM
2. David, I'm afraid you are 100% correct. Everything that Washington is going through, Michigan has been there. Michigan isn't as much in a recession as they are having a wholesale exodus of businesses and tax payers that still have enough resources to leave. And they keep raising taxes to try and fill the widening budget gap. Meanwhile the public services union demands more pay and benefits. Pfizer, Comerica, Ryan Homes and Electrolux have left recently and there certainly are more to follow. The Greater Lansing Daily did a poll that said ". . . businesses don't want to leave but it seems that their customers are . . ." to the tune of 600,000 a year. And that's in a state of 10 million.

Washington is not anywhere near Michigan�s incompetence but I can see the same mistakes being made time and time again. If Western Washington's modus holds true, our economy moves 6 months or so after the fact nationally. We could be in big trouble here soon with unemployment and high taxes stifling business growth.

Then what.

Sometimes I think that Rossi is crazy for running. The economy will slide into the dumper just about the time he takes over the big seat. The Times and P.I. will hammer him till hell won't have it, blaming him for Gregoire's uncontrolled spending and transfer programs.

Posted by: G Jggy on June 30, 2008 08:47 PM
3. When things start falling apart. That is when Democrats run weak races. Her Highness had a chance to do good for the state. Look at the state of affairs. I think she wants to lose and then she can come back and blame Republicans for the budget cuts. Democrats like control when things are good but when they destroy the state they run real quick. If Her Highness should win it could mean Democrats may lose power across the board. Or the people will take the lame promises theat Democras have the answers and will vote them in everytime. As things get worse they will not hold Democrats responsible but blame the Republicans

Posted by: David Anfinrud on June 30, 2008 09:12 PM
4. [i]"Sometimes I think that Rossi is crazy for running. The economy will slide into the dumper just about the time he takes over the big seat. The Times and P.I. will hammer him till hell won't have it, blaming him for Gregoire's uncontrolled spending and transfer programs."[/i]

C Jggy makes a good point. I think Rossi has a better than 50% chance thanks to Christine's moves like the online gambling ban, the online sales tax, the ongoing viaduct debacle, etc.

But if Rossi wins, it will play out just as C Jggy says.

Posted by: russell garrard on June 30, 2008 09:47 PM
5. #3 -That is a given that as things get worse they will not hold Democrats responsible but blame the Republicans.

So what are Republicans going to do about it ? How effectively they respond will determine the outcome. It is tougher because the MSM is working mainly for the Democrats. This will require thinking outside of the box for R's to respond effectively, and don't think too many Republican operatives are able to really do this. I'd like to be proven wrong here, but am not holding my breath.

Posted by: KS on June 30, 2008 09:59 PM
6. Eric--
This is Gregoire's Achilles Heel.
Keep pressing to get an answer.
SHE created this deficit.
SHE owes taxpayers an explanation of what SHE is going to do about the mess SHE created.
Comprende??
SHE must either raise taxes or cut spending or a combo thereof.
So what's yer plan Chris??
What, MO PLAN?!!
Seems like she loves being in power.
But as a career Bureaucrat is totally clueless that the Chickens have come home to roost.
My guess--
SHE will blame Bush.
Seriously.
Watch.

Posted by: Mr. Cynical on June 30, 2008 10:18 PM
7. Well here is the answer Gregoire:

8000 plus new hires - Bye Bye

Anyone with less than 20 years service - A simple 401k, (like everone else in business these days is having to settle for) and bye bye bye a forever Tax Payer pension plan.

You really really don't need to take your family all over the world this year at taxpayers expense...Ya Think?

And a why not stop giving 20,000 illegals free health care...I mean really send em back home on a lear jet....That would be cheaper

Why not walk the block to work each day instead of having a state patrol driver come get you in your mansion in a CO2 burning Lincoln

How about turning down the heat in the Mansion this year, like people in your state are having to do

Tommorrow is really really not a good time to add another 1.5 cents TAX on the cost of gas...BIG DUH

oh and finally

This is Bush's final term..just a reminder

But the dumbocrats are in their second term where by the way gas was 2.00 a gallon when they started and a you been gonna do something about that for a 3 hearings or so a now...DUH

How about jumping on board with some ideas about bringing the cost of gas down?

Just asking?


Posted by: gs on June 30, 2008 11:27 PM
8. Yup, and our taxes went up today for gas and anything purchased on the internet thanks to Chris(!). While she gives up $140 million in tax revenue as a kickback. She'll probably follow the King County model and cut things like parks and law enforcement. You know, the things people actually want.

Worst. Governor. Ever.

Posted by: Palouse on July 1, 2008 07:54 AM
9. Gregoire plan, the state had $2.8 billion available to rebuild the viaduct, it has already spend a large amount of that money on work stabilizing the south part of the viaduct, and DOT officials said only about $1.5 billion remains. Good work. We need more studies.

Posted by: George on July 1, 2008 08:42 AM
10. Look at the future in four years based losely on todays market.
1). Gas at about $10 plus a gal. A likely war between Israel and Iran etc.
2). Airlines bankrupt. Disruption in mail. Most people will heat homes with space heaters and many that can switch to electric cars. Electric power prices will be up.
3). Serice industry sour. massive unemployment.
4). High taxes and a decline in public benafits.
5). Massive public bankruptcys.
6). High crime rate and lack of law enforcement.
7). Many wealthy leave the country.
These are just some of the conditions facing the USA as you have to add earthquakes etc.
You have to vote with all this in mind.

Posted by: Mark Dial on July 1, 2008 09:18 AM
11. I'm writing today in Christine Gregoire's defense.

Being in Olympia, sometimes you get to be privy to interesting conversations in politics. The press is condemning Governor Christine Gregoire's campaign for going negative out the gate with negative ads and smears like those on www.dontknowdino.com. Getting dirty so early wasn't her team's first choice in campaign planning. The campaign staff actually wanted to spend the first 5 months proclaiming victory and laying accolades on her many accomplishments as Governor. As an old hat at marketing and as most of Washington State knows, that is a herculean task, even for the best spinners. I happened to be a fly on the wall for one of those conversations.

I was having lunch in downtown last month. At a table near to us sat the transportation secretary and one of Gregoire's campaign aides. She was telling the aide that if in 2004 there had been no roads at all in Washington, Gregoire would have finished enough miles of roads to connect a route directly from each of the new businesses spawned from her economic expansion projects to every other business spawned and never take the same route twice.

To this the aide replied, "Wait a minute! This morning I had coffee with the state's economic team and they warned me that not one of those billion dollar projects had produced a single job at all."

The transportation secretary responded quickly with a mouth half full of potato salad, "That's ok, we haven't finished any roads either."

Posted by: Andy on July 1, 2008 09:25 AM
12.
$2 Billion Deficit?

$2 Billion Lite Rail?

Hey, you got chocolate on my peanut butter!

Posted by: John Bailo on July 1, 2008 09:31 AM
13. Shall we bring up the Ferries?

Posted by: Army Medic/Vet on July 1, 2008 10:17 AM
14. Re 13: WDOT just offloaded $900,000 on to King county for the Vashon ferry. More proof that Sims and Gregroire should win co-clown of the year hands down.

Posted by: Paddy on July 1, 2008 12:51 PM
15. "Anyone with less than 20 years service - A simple 401k, (like everone else in business these days is having to settle for) and bye bye bye a forever Tax Payer pension plan."

gs: We can't do that. They have a contractual right to the benefits. There is a body of case law establishing that. Except in very exceptional circumstances, we can only change benefits for new entrants to the retirement system, not for active employees already in the system, and not for retirees. The state did that with the creation of the "Plan 3's" for new state, public school and some local government employees in the 1990s. Those are "hybrid" plans with defined benefit and defined contribution components.

So what you suggest is not feasible, whatever its merits may be.

Posted by: friar on July 1, 2008 05:57 PM
16. Not true, in other parts of the country they can do that to public sector retirees.

Based on personal knowledge, public school retirees from New York state can have their benefits changed/gone based on the contract negotiated by the current active members.

For those of us in the private sector, retiree benefits can be changed/gone at anytime. Private sector union retiree benefits (at least the one's I know of) are subject to the contract negotiated by the current active union members.

It appears that Washington state public sector employees have a sweet retirement deal.

Posted by: mvray on July 1, 2008 08:10 PM
17. I only hope that the State employees covered by LOEFF 1 and others understand that the State has been underfunding their pension plans by 70% since 2003 ( Pew Center for the States, comparison of all 50 States pension and defined benefits plans, 2007). The State has implemented a recovery program ( That includes huge year over year increases in contributions from taxpayer supported agencies) which may make the funds whole by 2024, but over half of the workers covered by those funds will be eligible for benefits (retirement) in 10 years.

Posted by: Smokie on July 2, 2008 08:15 PM
18. We need balance, common sense and fairness in Olympia. I am running for the State House of Representatives in the 36th District (Magnolia, Queen Anne, Ballard, Green Wood, Phinney Ridge and the very west of Fremont. I am a moderate Republican and Fiscal responsibility is very big with me.

Posted by: Leslie Bloss on July 3, 2008 11:11 AM
19. getracze

Posted by: cacmon on July 6, 2008 05:32 AM
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