Area legislators see state budget troubles growing

On Jan. 11, Gov. Christine Gregoire made her annual "State of the State" address to the Legislature, but afterwards, the three Republican legislators said they were disappointed in her message.

"It was a good cheerleading speech, but it was short on detail and long on sound bites," Honeyford said. "She did say she's open to new ideas, and that's refreshing."

Chandler pointed out that both this year and last year, Gov. Gregoire said she is not happy with the budget she is presenting to the Legislature.

"She made a point of saying she hates the budget, so this is the second time she's put a budget before us that she hates. That makes me wonder, is she committed to fight for it," Chandler questioned.

Chandler added that he sees the budget issues in a simple way.

"How do we develop a long-term strategy for managing the responsibilities of the state and budget that meets the state's needs without harming working families," Chandler said. "The governor appears to be convinced that finding more money or charging the right fee will solve the state's problems. I don't think our constituents will stand for that. It's not the money, but how it's being spent."

Chandler noted that the state's budget deficit is "just short of $6 billion," while the overall annual budget is approximately $33 billion.

"Earlier in the year, I was predicting a $4 billion of $5 billion defect," Chandler said. "Jim forecast $6 billion, and he's going to win."

"I hate to be a winner on that," Honeyford quipped.

"If we don't change the way the state manages its spending, the state's Office of Financial Management is projecting larger deficits every year for the next six years -- as far into the future as we can project," Chandler warned. "This is the Legislature's opportunity to change direction. If we don't, the families of Washington will pay a steep price."

The legislators explained that, as the new legislative session just began on Jan. 10, it is too early to know where needed budget cuts might be.

"The budget won't be focused until the revenue forecast in February," Chandler said.

Taylor said he was concerned with what the details would be as the budget plan is fleshed out.

"Overall, we're waiting to see where the next shoe will fall," Taylor said. "We're still getting briefed on various budget proposals."

Taylor said one bill under consideration would combine 11 different state agencies that deal with natural resource issues, but the legislators expressed skepticism about that approach.

"On the surface that sounds good, but combining them will only save $2.5 million. I'm not sure of the gains if we move forward with consolidation," said Taylor.

Honeyford pointed out that a previous consolidation of state agencies has not proven to be cost-effective.

"We paid big money to make the Department of Health & Human Services a big agency. Now we're trying to figure out how to take it apart," Honeyford said. "I'm not a fan of super-big agencies. Most consolidation proposals consolidate more power in the governor's office. I'm leery of that."

Chandler agreed.

"Moving people from one cubicle to the next is not reform," he said.

Some citizens have expressed concern that possible budget cuts could fall heavily on senior citizens or the disabled, but Chandler said he did not anticipate that.

"Funding cuts are not going to fall so much on seniors and the disabled, but are more likely to be in K-12, higher education, and Medicaid," Chandler said. "That's where the short-term savings are."

According to Chandler, another idea being discussed is combining adjacent school districts.

However, Honeyford said he questioned whether a proposal to combine school districts would gain approval from the Legislature.

Chandler said the proposal might work in large metropolitan areas where there are many school districts side by side, but not as well in the rural areas of the state.

"If this is introduced by Seattle-area legislators, I don't think its chances are very good," he said. "A lot of school districts already combine services with school sports and shared bus services. There are not large savings unless you force school districts into one building."

Chandler said there were significant efforts to increase taxes in last year's legislative session, but with the public mood running against new taxes, Chandler said he believes there will be a different approach to raising money.

"Last year was the session of tax increases," Chandler explained. "This year is the year of user fees -- but those are just tax increases. I'm disappointed in the governor on this, but it appears her plan is to shift as much of the budget that now comes from the state's general funds as possible into fees for service: parks, water rights, etc."

Taylor noted that a number of agencies are looking to set up a fee system for various services, including the Department of Ecology, which may soon be charging to address water rights; increased fees for hunting and fishing licenses; and "even fees for getting a copy of hunting regulations," according to Taylor.

Honeyford said there were some cuts he would like to see.

"I'd like to repeal the paid family leave bill, which has never been funded," he said. "And I'd like to see the repeal of the earned income tax credit, which also has never been funded."

Honeyford added that the state should take a critical look at its capital budget.

"There is no money for land purchases and no money for new buildings. We need to remodel and retrofit existing buildings, and if school districts don't do maintenance, they should not get money for new buildings," Honeyford said.

As for the jobs picture statewide, the legislators expressed some hope that employment will pick up in 2011.

"We're always cautiously optimistic," said Chandler. "Right now it seems to be stagnant, and state economists believe it will continue that way into spring. The first quarter of the year is typically not a time of strong job growth. A lot will depend on how we come out of this session. If there is a responsible budget that allows small businesses to keep their doors open, conditions will be stable. But I'm not sure how fast it will grow."