Politics & Government

Washington State Budget Falls Another $698 Million Short

45th District legislators weighed in on what this all means for residents.

The state’s budget hole got deeper Thursday when another $698 million was added to the budget shortfall for the 2011 - 2013 budget cycle, putting the total spending deficit at about $5.1 billion, according to the quarterly budget report released by the Economic and Revenue Forecast Council.

 The lowered revenue forecast reflects the effects of unrest in the Middle East as well as the earthquake and . Slow job growth; a sluggish housing market; tight credit for small businesses; consumer retrenchment after the holidays; and fiscal drag from the federal stimulus winding down, as well as cuts in state and local government expenditures are also to blame for the shortfall, according to the report. 

“First, we had the volatility in oil prices because of political unrest in the Middle East,” said Arun Raha, the state’s chief economist, in a statement accompanying the forecast. “Now we have the tragedy in Japan, the world’s third largest economy, and one of the state’s leading trade partners."

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 If that wasn’t bad enough, revenue for the 2009 – 2011 budget is expected to be $28.0 billion,  $80 million less than the state’s previous projection in November, according to the report.

 State legislators from the 45th Legislative District were quick to respond to the new deficit forecast, all agreeing that cuts are coming and it will be painful.

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Rep. Larry Springer (D-Kirkland) wrote in an email that today’s revenue forecast probably means further cuts to essential services many Washington families need.

“In the next several days, we will work even harder to find the most efficient way to deliver services across the state in order to minimize the impact of those cuts,” Springer wrote. “It continues to be an uphill battle.”

First term Sen. Andy Hill (R-Redmond) has a more optimistic take on the revenue shortfall.

“While short, the forecast still has us bringing in $3.9 Billion more in revenue than the previous biennium,” Hill stated in an email. “This is also well above the high-water mark for revenues set in 07-09. In fact, the headline could read ‘State predicts record revenue!’.” 

The state does not have a revenue problem, according to Hill; the problem is spending promises during the past four years that were unsustainable.

“This means there will be painful cuts that hurt real people,” Hill said. “The real challenge will be to make reforms that will ensure that we don’t find ourselves in this same position two years from now. I think that with a bipartisan effort, we can work to forge a solution that does as little damage as possible while setting the state on a track for success in the coming years.”

Rep. Roger Goodman (D-Kirkland) said that on the way to balancing the budget lawmakers need to make sure not to be penny wise but pound foolish, and need to continue to invest in essential services to avert even higher costs right away. 

“Just when I thought the economy was bottoming out, it looks like it's getting a little worse. It presents a greater challenge to balance the budget,” Goodman said. “In this historic budget crisis, we have no choice but to focus on the basics, and that means taking care not to tear the safety net too much and holding the line on our basic education system.”

He added that everyone was going to have to give a little, or a lot, but that two guiding principles are to protect the most vulnerable: children, the elderly and the disabled.

The legislative session is set to run through April 24, though there's some doubt it will wrap up in time.

 Margaret Santjer contributed to this story.


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