Reactions to the $5 Billion Budget Shortfall

This line in Andrew Garber's Seattle Times story pretty well sums it up.

"This is about as real as it gets," said House Majority Leader Lynn Kessler, D-Hoquiam.

We have no recent history to draw upon in responding.

This kind of financial crisis is unprecedented," [Arun] Raha said. "We have not had this kind of problem since the Great Depression."

..."Our state revenues are dependent on people buying cars and homes and gifts over the holidays. Right now no one is buying cars and houses," he said, adding that holiday shopping is looking dismal as well.

In fact, the state expects to collect less money from taxes in the 2009 fiscal year, which runs from July 1 to June 30, than in 2008.

Garber's report identifies the options under consideration, including layoffs, taxes, health and social services cuts in reimbursement and tighter eligibility. Read the whole thing. It's a good preview of the legislative session.

In The News Tribune, Joe Turner has the union response.

The Washington Federation of State Employees, which represents 40,000 of the more than 100,000 state workers, expects the governor and the Legislature to eliminate tax loopholes and exemptions. Federation spokesman Tim Welch said the union doesn?t believe its recently negotiated contract, which will cost the state $70 million over the next two years, is in jeopardy.

?Our goal would be to avoid layoffs, which would make the problem worse,�� he said.

What problem would that be? And, clearly, the negotiated contract must be in jeopardy. How do you justify service cuts while giving public employees pay increases and heavily subsidized health insurance?

Good coverage also in the Everett Herald, Seattle PI, and in Rich Roesler'