The state budget is in a deep hole. Again.
Washington state is projected to collect about $1.4 billion less in tax revenue than expected between now and the end of June 2013, according to budget forecasts.
Gov. Chris Gregoire called a 30-day special legislative session, starting Nov. 28, to deal with the budget shortfall.
“Our work will be brutal,” Gregoire said at a Sept. 22 news conference in Olympia. “There will be more cuts that will affect our vulnerable citizens. There will be more cuts in our corrections system. There will be more cuts in our public schools, our colleges and universities.”
Entire programs will likely be cut out of the state budget, Gregoire said.
The revenue shortfall comes on top of a poor June forecast in which most of the state’s reserves were wiped out and just months after legislators cut more than $5 billion in programs, particularly to education.
Citing the state’s need to keep a healthy reserve fund, Gregoire said she looks at the current budget hole as closer to $2 billion than the $1.4 billion revenue loss forecasted.
That $2 billion is a whopping 23 percent of the “unprotected” spending that isn’t shielded by federal mandates and state constitutional restrictions.
Last May, legislators cut projected spending by more than $5 billion, including major cuts to higher education, social services and health care programs. Higher education was one of the hardest hit, with $532 million in cuts that were partially offset by allowing up to 16-percent tuition increases, according to the Washington State Higher Education Coordinating Board.
U.S. Rep. Jay Inslee, a Democratic nominee for governor, said in a press release the state’s first priority should be to avoid additional cuts to education because it is important for job growth in the state.
Steve Swan, vice president of University Relations, said he knows no one is looking forward to more budget reductions, but he hopes the upcoming session will help people understand the role higher education plays in the economy.
He said while it is too early to speculate on which areas could potentially be reduced, Western intends to send lobbyists to Olympia by Nov. 28 or earlier.
Democrats such as Inslee have talked about exploring ways to raise revenue, including the repeal of tax breaks for the wealthy. They argue that revenue can help the state manage the rising costs of school tuition and services during the recession.
Republicans generally oppose any tax increases. A voter-approved initiative passed in 2010 requires a two-thirds majority to raise taxes.
Washington should begin identifying new sources of revenues, Swan said.
“It is important for us to maintain the Western brand, meaning high-quality educational programs and services,” Swan said. “If we’re going to maintain that quality, we’re going to have to identify new revenue sources because we’re no longer cutting flesh; we’re cutting bone.”





