Solving the Budget Problem Without Raising Taxes

Saturday, the Wenatchee World ran an editorial that does a nice job of putting our current economic and fiscal condition in perspective. (h/t Jason Mercier) Under the headline "Change in a time of shortages" the editors point out that current projections call for a slow recovery, not a quick rebound, and state and local revenues can be expected to be down for the foreseeable future. And they recognize the opportunity behind the shortfall.

If we have just begun a lengthy span with government revenues less than desired, then government must change. Groups that expect government to sustain them will have to consider how much more money can be extracted from the consumers who daily demonstrate that they don’t have much extra to spend. There will be a limit to how many of society’s shortcomings can be eased by government spending. Entire state programs may be cut, and the cuts may be even more painful and controversial than a year ago, when federal stimulus money helped ease budget pains. And in the cities like Wenatchee, expect less.

All is not sorrow. Taken in the proper perspective, this is a time of opportunity for both government and business. Creativity and a willingness to change, to find new ways of doing things, will go a long way.

The Yakima Herald-Republic makes a similar point.

Most encouraging in the wake of these new revenue forecasts is the nearly unanimous call from lawmakers to reduce spending. No one has yet expressed interest in suggesting a tax increase, nor is there a clamor for a special session.

These are both good signs. This is certainly not the time to entertain any type of tax increase nor is the revenue projection a cause for panic.

In The News Tribune, columnist Peter Callaghan looks at the difference a year makes to lawmakers confronting another round of budget cuts. 

Getting worse more slowly may be the sign of a turnaround, but as Austin Jenkins writes in Crosscut, for the majority party the coming session the next session looks, well, here's his description:

Majority Democrats in the Washington legislature are facing a miserable 60-day, election-year session come January.

I agree with the folks at the World, the fiscal crisis provides abundant opportunities for change. But it won't be easy and it won't be fun for lawmakers eager to avoid conflict.