July 02, 2008
Re: Washington State Budget Deficit Grows

As astute reader points out an interesting twist to a recent post on the state's looming, $2.7 billion budget deficit.

Gregoire budget chief Victor Moore said the Office of Financial Management wasn't going to run fresh budget projections in the wake of the recent, negative, state revenue projection. That's not the tune he was singing in February.

Back then, the Senate Ways & Means Committee staff came out with its $2.4 billion deficit projection, eliciting this reaction:

Victor Moore, the governor's chief budget writer, said he's not convinced the Ways and Means estimate is accurate. "I'm not giving any credence to that number," he said, noting he has concerns about the methodology.

Moore said his office will come out with its own projection later.

Four months later we've had the aforementioned revenue projection and an updated $2.7 billion deficit figure from the same Ways & Means Committee staff.

But, still no numbers from the Gregoire administration.

That's called not planning for a rainy day even when you can see a monsoon coming on the horizon.

Posted by Eric Earling at July 02, 2008 07:39 AM | Email This
Comments
1.
Our state budgeting has been a roller coaster. We spend when we have a surplus and we struggle to make painful cuts when the economy slumps. It is time to even out the ride. While the roller coaster is fun at the amusement park, it is no model for state budgeting.

By treating our budget like a Washington family budget – we will ensure stability and avoid tax increases or Draconian cuts tomorrow.

-- Governor Christine Gregoire, State of the State Address, January 10, 2006

How's that working out?

Now we face either tax increases or what she would call "Draconian" cuts, because we spent when we had a surplus and now we are struggling as the economy slumps. While revenues have increased about 15 percent, expenditures have increased 33 percent.

We did exactly what she (correctly) said we shouldn't do. The model she and the democrats used was precisely what she said was no model for state budgeting.

It's past time to even out the ride: vote Dino.

Posted by: pudge on July 2, 2008 07:56 AM
2. And don't forget the real punchline, from her State of the State this year:

For too long, state government spent in the good times, and then made painful cuts when the economy slowed. We are getting off that roller coaster, and we're making progress!

She apparently thinks that what she said in 2006 has happened, despite massive budget increases and facing a huge deficit.

Oh wait. Something's not right. In 2006 she said we needed to avoid "tax increases or Draconian cuts tomorrow." But now that it IS tomorrow, she says our goal is to avoid "painful cuts." Note that there is no mention any longer of avoiding tax increases.

Of course, in 2004, while campaigning, she said she would try to avoid tax increases. She was clearly lying: she knew she would raise taxes all along, and she did it. So we should not be surprised that when she said she would avoid tax increases in 2006, she was lying then, too.

When it comes to tax increases, Gregoire SAYS she wants to try to avoid it, but she ALWAYS does it anyway.

Posted by: pudge on July 2, 2008 08:18 AM
3. Painful cuts.... Yeah like the gov will ever do that.
No, it's much easier to keep taxing even higher.

Posted by: Army Medic/Vet on July 2, 2008 08:33 AM
4. I'm always amused how cuts in spending are described as "painful" or "draconian" by liberals (and by extension, the MSM), as pudge noted above. In nearly all cases, if the politicians had acted prudently to start with, those cuts would not have been necessary or nearly as "painful".

Posted by: Palouse on July 2, 2008 08:51 AM
5. Palouse, yes, so you are agreeing with Gregoire's statement in 2006. If only she did, as well. :-)

Posted by: pudge on July 2, 2008 08:57 AM
6. Washington State Budget Deficit Grows

Yes, but the queen hopes we can be Chicago.

Posted by: Ragnar Danneskjold on July 2, 2008 09:26 AM
7. Ragnar.

Do they also have a payroll tax?

Posted by: Army Medic/Vet on July 2, 2008 10:54 AM
8. Pudge @ 2,

She does believe it since the increases were only 33%....a non-fiscally responsible Queen would have spent 50% and it just killed her not to.

Posted by: dengle on July 2, 2008 12:01 PM
9. Eric--
This is a huuuuuge problem for Gregoire.
You and other readers are doing a great job of bringing back Gregoire quotes where she pretends to be fiscally responsible while approving spending increases left and left! (as opposed to left & right!)
And now....buck-buck-bwaaaaaaaaack
The sound of chickens coming home to roost.
Old Victor Moore is going to have to play "hide the deficit" for the next 5 months.
Not possible.
Rossi Campaign must push, push, push Gregoire for her solutions to the deficit SHE created.
Keep shovin' Eric.

Posted by: Mr. Cynical on July 2, 2008 12:03 PM
10. Even AWB is on this...from Monday's newsletter:

Senate Ways and Means Committee budget outlook -- Now a $2.7 billion shortfall
Bad news from the Senate Ways and Means Committee: A new outlook from the committee shows the effects of the June revenue forecast. Unfortunately, the budget hole has deepened to about $2.7 billion. According to Ways and Means staff: "As they have done in past, it is anticipated that the Governor and the Legislature will use available reserves and implement spending reductions and/or revenue changes
to balance the 2009-11 budget." What we'd like to know is what those "spending reductions and/or revenue changes" will be. Stay tuned. Read more at AWB's Olympia Business Watch blog at www.olympiabusinesswatch.com. Contact AWB's Amber Carter at (360) 943-1600 or AmberC@awb.org.

Posted by: Mr. Cynical on July 2, 2008 01:37 PM
11. Imagine for a moment the faces of the union bosses when, in November, after the election, Gregoire tells them they aren't going to get those raises - and oh, yeah, she going to have to lay off 1/2 of the civil servants.

Or perhaps they know she'll lose and give them raises just to screw with Rossi.

Posted by: deadwood on July 2, 2008 02:00 PM
12. The current Gov will not take responsibility for this - no wonder Gregoire supports Obama - they are both good at throwing people under the bus that are scapegoats for problems attributable to them. In reality, for the good of this state and country respectively, they both really need to be thrown under the bus by the electorate to avoid driving WA State and the USA respectively over the cliff into the abyss of diminishing greatness..

Posted by: KS on July 2, 2008 08:29 PM
13. If we want balance and choice with fiscal responsibility in Olympia it is not only Dino Rossi that needs to win in this election. We also need change in the Legislature!

I need to win in the primary. My name is Leslie Bloss and I am running for State House Rep., 36th District, Position #1. District 36 is made up of Magnolia, Queen Anne, Ballard, Phinney Ridge, Greenwood and part of west Fremont.

I want to work on tax reform (too many people are worried about being taxed out of their homes), fix our schools, eliminate congestion, put family before felons and help with pursuing a clean environment. All of this while utilizing common sense, honesty and integrity.

I am a moderate Republican--and you may find it is worthwhile checking out my website:
www.blossforthe36th.com

Thank you for reading,

Leslie Bloss
leslie@blossforthe36th.com

Posted by: Leslie Bloss on July 7, 2008 11:02 AM
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