Lawmakers Consider Spending Cuts, Tax Increases

Brad Shannon's story in today's Olympian highlights Senate Ways and Means chair Margarita Prentice's bill that would implement a day-a-month state furlough program. The unions don't like it;

One critic was Greg Devereux, the executive director of the Washington Federation of State Employees, who ... warned that the furloughs could prompt court action, as other states’ furlough efforts have, including California’s.

Sen. Joe Zarelli raises a more valid objection.

Republican Sen. Joseph Zarelli of Ridgefield disputed the idea that withdrawn pay increases represent a pay cut. But he criticized the bill because it did not make permanent reductions in state costs that would help with an expected budget gap in 2011-13.

Yesterday, Shannon discussed the House's budget-cutting plans. 

For a look at the tax plans under consideration, at least by House Speaker Frank Chopp, read Austin Jenkins' Crosscut article. 

On TVW’s “Inside Olympia program, I asked Chopp if a sales tax hike is on the table, off the table,or on the edge of the table. “Well, I think it’s more on the edge of the table,” answered Chopp. “I think most folks worry that it might add to the more regressive nature of our tax system. So a general sales tax, I think there are a lot of people concerned about that.”

Chopp did acknowledge that one sales tax proposal remains in the mix. That’s a temporary one-cent increase coupled with a tax credit for lower-income working families based on their federal Earned Income Tax Credit. 

Here's what he sees as more likely:

... the code term of the session for Democrats is going to be “tax fairness.” What this means is Democrats are going to target people and businesses they think aren’t paying their fair share — and that’s how they’re going to sell it to the public.

...Speaker Chopp told me about a plan to charge an annual excise tax for privately owned airplanes similar to what boat owners pay. He said he doesn’t think “wealthy” aircraft owners deserve a break when public education is being cut. There are also proposals to increase the cigarette tax and end the sales tax exemption for gum, candy, and bakery goods. 

Bottled water and soda pop syrup are also in the mix. And, as the governor proposed last week, the search for exemptions and "loopholes" will be agressive. 

Add it up, though, and it still doesn't fill the hole. As the session moves on, expect the talk to turn to the more lucrative standbys, including sales and business taxes. 

UPDATE Good account of the four spending cut and early savings bills in this AP story.