Early Reactions to Governor's Budget

As she predicted, reactions to the governor's budget have been swift. While the scramble to understand the details will take us all a while, the broad brush strokes are enough to frame the likely debate.

As we posted earlier today, Sen. Joe Zarelli likes the approach Gregoire has taken, saying it puts the process on the proper course. Zarelli is ranking Republican on the Senate Ways and Means Committee. His counterpart in the House, Rep. Gary Alexander, also likes the direction.

I commend the governor for putting forth a balanced budget that does not raise taxes or fees.  House Republicans have long believed that increasing taxes or fees is not the right approach while families are struggling with everyday expenses and workers are losing jobs.

While there are certainly some details of her plan that we might do differently, the governor has offered a good first step in correcting the past four years of overspending. 

Alexander and Zarelli both emphasize the importance of building early savings into the 2009 supplemental budget.

AWB president Don Brunell issued a brief statement.Noting that AWB continues to review the budget proposal, Brunell emphasizes the groups support for her decision not to raise taxes on families and employers. He adds:

It is critical that Washington state look beyond the current budget woes and prepare for what happens after we emerge from this recession. Part of that discussion must include creating the conditions for a healthy business environment so that when we do emerge from the recession, Washington is positioned as a good place to create those jobs.

 

As devastating as the economic conditions may be, the recession is an opportunity to reshape the way government operates and position our state to attract and retain businesses.

The largest union representing state workers call Gregoire's plan dead on arrival. They say that approvingly, looking for legislative support for tax hikes.

?Our biggest concern is that everything should be on the table and that includes tax loopholes and revenue enhancements,�� Federation Executive Director Greg Devereux said.?If the economic parts of our negotiated contracts that were ratified two months ago can be suspended, why can?t a campaign pledge on no revenue increases be retracted?��

Senate Majority Leader Lisa Brown has reservations as well. She calls reliance on $1 billion in federal assistance a "glaring flaw" and, pointedly, does not pledge to resist tax hikes. Brad Shannon notes her concern in his Olympian story, which includes Alexander's assessment that the estimated federal money is a "reasonable assumption." Today's Wall Street Journal story on the Obama stimulus plan adds weight to the Gregoire/Alexander position.

The broad parameters of the package are known already. It will include a tax cut designed to pump $50 billion to $100 billion into the economy almost immediately; about $100 billion in aid to state governments, primarily to temporarily assume more of the cost of Medicaid, in hopes of staving off benefit cuts or tax increases; and funding in five main areas: traditional infrastructure, school construction, energy efficiency, broadband access and health-information technology.

Finally, both the Evergreen Freedom Foundation and the Washington Policy Center have posted first impression comments on the new budget.

Update University of Washington president Mark Emmert says the proposed budget would "seriously harm" the UW.