Budget leadership
The state is facing a $2.6 billion deficit and we wonder how Gov. Chris Gregoire is going to remedy the problem.
She announced some of her possible plans combining increased taxes with spending cuts. But before she could demonstrate her leadership, she left the state — and the country.
To help illustrate the dire economic times Washington state is facing, our governor got on board a plane and flew to Copenhagen, Denmark. She is sitting and watching 192 nations hammer out a global accord to reduce carbon dioxide levels. Nations. Not states.
Why is she there? Perhaps to prove her dedication to environmental efforts to urban Western Washington voters? We guess she thinks President Barack Obama can’t do it on his own and is there to “help.”
Of course economically, she is showing us she is willing to spend state money on international travel to just sit and watch the United Nations in action.
Before she left, she proposed a few ways to solve our situation. Gregoire suggested cutting $1 billion in spending, including closing Ahtanum View, Larch and Pine Lodge prisons, along with a wing at Walla Wall State Prison, and three juvenile detention facilities. Two facilities for the developmentally disabled are slated to close too.
Crime must be on the decline this year or she accepts putting criminals back onto the streets. This must have lost her votes and support in Lakewood.
Then there are deep cuts proposed with the Basic Health Plan, providing 65,000 people health coverage, General Assistance, a program to assist disabled people who can’t work, and the levy equalization program, which matches funds for schools building new facilities.
Gregoire announced plans to increase taxes to generate another $700 million.
She didn’t rule out increasing our state sales tax from 6.5 percent. It is estimated the state could raise more than $500 million by raising the sales tax by one-half of one cent.
Despite her flight to Denmark to show her concerns for CO2, she has reviewed the possibility of increasing taxes on gas and requiring sales tax on fuel in addition to the current high state gas tax.
Her list of potential increases reaches toward smokers, drinkers, gamblers and people who eat. Despite our state having a history of rejecting sales tax for foods — alcohol and prepared dishes aside — we could see a 5 cent per can soft drink tax to raise $93.6 million, a 1 cent per ounce water tax to raise $134.7 million, a candy sales tax to raise $28 million and a baked goods tax to raise $15 million, according to the state Department of Revenue.
We are told to resume spending to help companies recover from the recession. They need sales and increased revenue to hire employees, pay them more, buy new equipment to become more efficient and green powered, provide health insurance and to help generate sales tax revenue. But for every dollar they tax from us, through new or increased taxes, means less money to help restart our economy. It means our budgets at home have to cover more with less.
The deficit was not created by reduced tax revenue. It was created by government spending.
For example, despite lower claims last year state Department of Labor and Industries seeks a 7.6 percent workers compensation payroll tax increase. This is another $117 million taken from employers and employees to pay for higher spending by a state agency administration.
“I am extremely disappointed that despite public input against the agency’s proposal and our state’s economic situation, L&I has decided to increase payroll taxes on employers. I had hoped the agency would avoid any move that would further dampen job retention and creation. Employers simply cannot take another financial hit right now,” stated Rep. Cary Condotta, R-East Wenatchee.
He’s right.
Spending cuts are painful because some people have become accustomed to the increased amount of government service being provided. But to pay for a self-created deficit by bleeding the taxpayers seems like a plan to continue the recession, make Washington a more business unfriendly state, and continue citizen frustration with state agencies out of touch with our current economy.
It’s too bad our leadership isn’t taking the hard steps of requiring state agencies to become more efficient. Perhaps the state could freeze all salary increases, capital item purchases and esoteric pet projects, to focus on economic recovery. But Gregoire is too busy taking in Copenhagen on our dime.
— Editorial board