Dear neighbors,
As we enter the 11th week of the 2011 legislative session, we find ourselves in a more troubling position than where we began. While we have been working hard for months on budget details, and we made strong strides towards streamlining and trimming waste within state government, now is the time to begin finalizing the budget.
Three-year revenue down another $778 million
The state Economic & Revenue Forecast Council released its new revenue forecast for the 2009/11 and 2011/13 biennia last week. The projections, while not as bad as feared, are nevertheless daunting.
Revenues continue to lag, only more so — the state is now expected to receive $80 million less in 2009/11 and $698 million less in 2011/13, for an overall decrease of $778 million over three years.
This leaves the state about $201 million short for the 2009-11 biennium, after adjusting for caseloads and assuming the governor’s level of policy requests. The projected shortfall for 2011/13 is approximately $5.4 billion.
Due to our reliance upon continued consumption, our state is vulnerable to sharp swings in revenue. It also means that our state is especially susceptible to large-scale events that have an impact in the national and global economy, such as instability in the Middle East and natural disasters in Japan.
These events, coupled with the residual effects of the Great Recession have combined to reduce consumer confidence to extent that our future revenues appear damaged.
You can read the Forecast Council’s reports and watch the full revenue forecast by clicking on this link: www.tvw.org/media/mediaplayer.cfm
What does this mean for the budget?
Entering the legislative session, we already knew we were going to have to do more with less than ever before. Given the new revenue forecast, we face some increasingly tough realities. Countless decisions lie ahead for all of us as we weigh cuts to public schools, public universities, public health, public safety and environmental programs.
Given the new revenue forecast, we face some increasingly tough realities. Countless decisions lie ahead for all of us as we weigh cuts to public schools, public universities, public health, public safety and environmental programs.
Rest assured that you have my commitment to maintain a basic level of service and to take every effort to avoid devastating reductions to public services. There will be cuts – and they will be large – but they will hopefully be mitigated so that we may protect our most vulnerable in our communities.
Light at the end of tunnel
By now many of you are familiar with the debate around government spending and tax loopholes. Every year, our state hands out approximately $8 billion in tax exemptions, loopholes and giveaways.
While it’s true that eliminating tax preferences is by no means the silver bullet to our historic budget challenges, there are many currently on the books that no longer serve the needs they once did, or are simply illogical considering our systemic fiscal problems.
There are several bills currently being considered in the Senate that would make targeted closures of a small number of tax exemptions, like giveaways on cosmetic surgery or privately owned airplanes, to save our core of basic state services – like funding for public education or the Basic Health Plan.<
I support these efforts and am working hard to advance these discussions regarding reform to our tax structure – though, I admit, it will be an uphill battle.
The indefatigable 2/3s majority
Tax preferences are subject to the rules establish by I-1053. Under 1053, any increase to revenue, including tax exemptions, is subject to a 2/3s vote of both chambers before passage. OR, proposals can pass with a simple majority and be sent to the ballot box for confirmation by the voters.
It is highly unlikely that either chamber will be able to muster the 2/3s requirement, so Washington State residents may again be looking at a ballot with seemingly more numbered things to vote on than candidates again this year.
Bill approval
I’m pleased to announce that just yesterday, the Senate Natural Resources & Marine Waters Committee, of which I am Chair, voted to pass HB 1186.
The bill, sponsored by Representative Christine Rolfes, is designed to prevent catastrophic oil spills, establish stronger spill-response pans and increase the responsibility of those who contaminate Washington waters.
In Washington, vessels travel close to our shorelines and in confined waterways. A major spill would cripple our state’s economy, costing 165,000 jobs and $10.8 billion in economic impacts – we cannot afford to leave our livelihood so unprotected.
I’m grateful for Representative Rolfes’ leadership on the issue. Though the bill still has quite a ways to go, I am dedicated to working on the Senate side to see the bill through to the Governor’s Office for executive approval.
As the coming weeks unfold, I will stay in constant communication, delivering details on key pieces of legislation and budget updates. It’s an honor to serve you.
Kevin Ranker
I notice that the list of services which may have to be cut includes most things that the population at large interacts with. Not on this list is the cost of funding our legislative bodies. If the people are being asked to accept a reduction in services, then it is only fair that the legislative bodies do so as well.
Let’s do with fewer aids and busybody people, serve more normal food in the cafeteria, stop taking junket trips for nebulous reasons, maybe even drive your own cars instead of using a limo. There are lots of ways to cut back on the costs. The key thing is to start viewing the legislative branches as a normal family with a limited and threatened budget.
I am not singling out Mr. Ranker. I do not know his own personal habits as a member of the legislature. Instead I am directing this to the legislative bodies as a whole. Do as we are doing, learn to get by on less.
Jim McCorison
West Sound
Jim Thanks for your comment.
The legislature has in fact significantly cut our own budget – this was one of the first actions we took two years ago and we have continued reductions each year. Our pay has been frozen for several years now and we plan to reduce it further. We are currently considering a bill that would allow the salary commission to reduce salaries whenever general government, including public employee, salaries are reduced. We have reduced our own budget by about 15% and plan to further reduce again this year. In the Senate, we closed our cafeteria entirely this year. We have also eliminated any travel for out-of-state meetings (including those for specific Washington legislative matters that we need to be at – if not hosted, we pay out of our own pocket). Lastly, as far as I know, no one has a limo – or even a state car – in the legislature. We drive our own cars.
You correctly point out that many of the cuts we face will impact the programs most important to our communities. This is a horrible reality that we face (keep in mind these are rough numbers/estimates): Of our approximately $32 billion budget, all but around $8 billion is restricted in basic education (which as we are all aware does not adequately fund education) and other Constitutional or federal mandates. Within that remaining $8 billion is the rest of k-12, 100% of higher education, senior programs, the Basic Health Plan, the entire natural resource budget, etc. Finally, we have to cut $5 billion from that $8 billion.
In November the voters chose to not raise taxes OR close any tax loopholes. So, the horrible reality we face is cutting $5 billion from the $8 billion that matters most to our communities.
That said, I believe each of us in Olympia (Republican and Democrat) are working hard to try to protect the programs our communities rely on these most. While we may have different priorities or different values, each of us is sincerely dedicated to trying to address this budget in a way that protects our most vulnerable, our communities and our state – in a way that (hopefully) positions us for a better future. Trust me when I say there is a lot of soul searching going on in Olympia these days. For the most part, folks are honestly trying to put aside differences and work together for you and the rest of our citizen’s future. While there are no guarantees, I hope this continues.
I hope this addresses your concerns. If not, please feel free to call my office at 360.786.7678 and I will be happy to speak to you about these matters further.
I hope you are well.
-Kevin Ranker