Governor Releases Austere Budget Plan

The first shoe dropped this morning as Gov. Gregoire released her proposed 2009-2011 budget. In addition to coverage on TVW, she has a nice video release laying out her policy priorities and guidelines. In the video, press conference and this press release, she restates her pledge not to solve the problem with tax increases.

The governor?s proposed budget will close the projected shortfall without raising taxes.

?Now is not the time to be raising taxes on our residents and businesses,�� Gregoire said.?Our families are tightening their belts, and that?s what government needs to do. The state must squeeze every ounce of value from each taxpayer dollar while maintaining our priorities of protecting families and children the best we can.��

I didn't hear the word "ugly" in her description of the budget, but she says she expects that everyone will find something not to like in a budget that closes - her estimate - a $5.7 billion budget gap. As expected, she rejects salary increases for state workers, teachers, and care workers.

Acknowledging that this is the beginning of an extended budget discussion, she invites public participation through something called "an interactive budget calculator" that will be on the governor's web site in early January.

Instant budget analysis is always dangerous. Details matter. That said, it's encouraging to see that the governor recognizes the importance of balancing the budget within existing revenues and has appeared to take a long-term perspective to the budget.

State senator Joe Zarelli (R-  had this to say about it:

The governor has put the budget process on the proper course with her proposal for the 2009-11 biennium... she did what she promised by balancing that budget without tax increases. Those are positive steps. There is some room for discussion about whether the priorities reflected in her budget are the real, core priorities of government. But overall it?s a move in the right direction.

 ... The governor has done her part and made a solid case for her choices. Now the ball moves into the Legislature?s court.

Andrew Garber at the Seattle Times has a good overview, including this rhetorical Q&A.

...Gregoire's proposed spending plan for the next two years represents an increase of less than 1 percent over the current budget.

Which raises a question: What's being cut if state spending is essentially flat?

The answer: Mostly proposed increases in state spending.

At the PI, Chris McGann runs down some budget highlights. Joe Turner's Political Buzz blog also provides good insight. And for an excellent national overview of the state-local budget dynamic, check out this story in the Wall Street Journal.

WashACE will be looking more deeply into the budget, with a Competitiveness Brief scheduled in a few weeks. It's critical that the budget adjustments close the structural deficit and put the state on a course for long-term fiscal sustainability. More later.