State's bottom line: no money, legislators say

Budget, health care and education big priorities, yet they all present challenges, lawmakers say

OLYMPIA — The state is still broke, money to fund programs is short and answers are almost as scarce as the money itself, legislators told the media Thursday at Legislative Day, sponsored by Allied Daily Newspapers of Washington and Washington Newspaper Publishers Association.

State lawmakers from both parties met with state newspaper editors, publishers and reporters at the Legislative Building on the Capitol campus Thursday, on a day when the blue skies belied the economic dark clouds looming straight ahead.

The primary issue, legislators agree, is the budget, showing a $2.2 billion deficit and an economy that although showing slight signs of recovery, is still extremely fragile.

Secondly, the threat of rising health care costs is hitting businesses and government agencies alike. Third is education, where lowering the standards set by reform measures would be a "disservice" to kids and teachers, legislators say.

"There are some careful decisions to be made," said Republican Sen. Bill Finkbeiner, the Senate's minority leader. "If we continue to work in a bipartisan manner, we can solve the problem."

The word from across the aisle is that that may be easier said than done.

Democratic Rep. Lynn Kessler, the House's majority leader, said that by listening to both parties talk about working together, one may get the impression that they are both already on the same page, which, she said, is not necessarily so.

"The devil is in the details," she quipped, although she conceded there was indeed some basic common ground, such as an interest in getting the ailing economy off the ground and curing the state's health care crisis, as well as working towards a better education system.

The Budget: Money wanted

Hear the legislators talk about the budget and the same words repeat themselves: fragile, careful, difficult, important, challenge. And those are the optimists.

Democratic Sen. Margarita Prentice, chair of the Ways and Means committee, is more blunt. "We do not yet know who is going to be left out," she said, "but it's all going to be painful."

The state does not have enough money to go around for everybody, so some groups will not get the money they are asking for. In fact, asking for money at this point may be counterproductive, lawmakers said.

"You have a $2 million dollar problem, (time to) quit digging," said Republican Rep. Gary Alexander from the Appropriations committee. "The hole is pretty deep already, and new requests are only making it deeper."

Two years ago, former Gov. Gary Locke established a set of Priorities of Government, which helped turn in a balanced budget when faced with a slightly smaller gap. Alexander said setting priorities could be helpful again.

To Democrat Rep. Helen Sommers, chair of the Appropriations committee, this budget crisis feels different than the past two bienniums, when the state has also faced tight times.

"We have a conservative administration in D.C.," she said. The Bush administration's rigidity has told states repeatedly to "do it like we tell you," she added.

Another obstacle is setting priorities among the varied needs of 49 districts. To think that all the districts may have an unified approach the budget crisis is "unrealistic," said Democratic Sen. Lisa Brown, the Senate's majority leader, who added that most districts were still trying to figure out what the priorities would be. One thing is certain, the Spokane senator said. "Health care is key."

Health care: A sense of urgency

Much like with the budget, lawmakers agree that there is no easy solution for the rising health care costs hitting state agencies, small and big businesses alike.

"Health care cost is the biggest challenge," said Sommers. State Insurance Commissioner Mike Kreidler echoed Sommers' words, saying that the two biggest issues facing his agency would be Medicare malpractice insurance reform and health care reform.

With revenues are increasing by seven percent while the cost of Medicaid is growing at an 18.7 percent over the next two years, almost a two-to-one pace.

"It's a problem across the nation and there is no silver bullet for health care," said Kessler, who added the state is trying to attack a big problem by taking "small nibbles" at it.

Finkbeiner said he was concerned that the state was not doing enough to roll back health care mandates strangling small businesses. One of the alternatives is having small businesses buy health care.

"We need to look at the whole picture," he said.

The whole picture includes not just health care reform for businesses and agencies, but also for educators, whose health care costs have seen a spike recently.

"We can't keep ignoring (teachers,)" Kessler said.

Education: Seeking for answers

Along with all the state agencies, the education sector is also affected by a dearth of funds from the state. A state short on money, legislators say, can't be long on promises.

"There is no way, we can get out of here promising a better education for students and a better salary for teachers if we have no money," said Kessler, who nonetheless advocated staying the course on education reform.

Lowering educational standards would be the equivalent of telling kids they are not smart enough, she added.

Inside the classroom there are certain encouraging signs. Terry Bergeson, State Superintendent of Public Instruction, said that thanks to House Bill 2195, passed last spring, Washington students can retake the student learning assessment test known as the WASL. That, plus a good nationwide ranking on ACT and SAT scores as well as on advanced placement classes, makes for a positive outlook on the future of students within the state's educational system.

Outside the classroom, the picture is different.

"We still have less buying power than in 1993, when we passed education reform," she said. "We are below national averages in teacher salaries."

The differences are stark when compared to nearby states, she added. Alaska, Idaho, Oregon and California have on average a teacher salary that is higher by $10,000.

Money is of the essence to keep up with rising costs and a large graduating class looming in 2008. Bergeson has chosen a realistic approach, knowing that the budget she turned in will be very different from the one she is actually handed back.

"Nothing like my budget will be funded by this session," she said. "We are right at the edge of a cliff."

These days, most legislators agree, the entire state seems to be tilting around that same edge.