Washington didn’t cause this crisis
Our state is feeling the effect of a worldwide recession. Wall Street CEOs and the housing collapse caused serious damage to our economy which will take years to make up. Last session, we closed our $9 billion budget shortfall with an all-cuts budget, even as 29 other states raised revenue. The budget hole we’re working to solve didn’t start here, and the problem doesn’t end here – every country and every state is struggling with the recession.
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.
We balanced the budget by shrinking government
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.
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:
$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. I welcome your comments.
For more information on the proposed House supplemental budget: http://leap.leg.wa.gov/leap/budget/detail/2010/ho2010p.asp
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