Budget Problems Spread

This morning's Seattle Times calls on gubernatorial candidates to be clear on how they're going to resolve the $3.2 billion budget problem without raising taxes. They agree with a no-new-taxes pledge.

That is the only rational position for a state that cannot abide higher taxes at a time of such economic fragility.

The Times also carried a great column by Jon Talton on the week that changed Seattle's economy. Make that the state's economy. Talton effectively makes the case for the importance of healthy headquarters companies. And warns that the worse may not be over.

Whatever one calls this economic distress, it is putting companies under stress they haven't seen in years? even decades? and shows no sign of letup.

That's why WashACE argues that lawmakers must evaluate every decision that make next year by asking: will this enhance or damage the economic competitiveness of our state's private employers?

Here's an example of  how states dig holes for themselves. (h/t stateline.org)

Gov. Rod Blagojevich's administration doesn't know who it's signed up for an enlarged health insurance program, how much money in premiums it's collected or even where that money is, according to a court ruling Friday that blocked the program's expansion.

Illinois' First District Appellate Court in Chicago upheld a lower court's decision to deny Blagojevich permission to broaden FamilyCare after he was rebuffed by the General Assembly and the secretary of state.

Expensive, open ended entitlements are always the wrong way to go.