State budget outlook predicts at least $900 million shortfall
OLYMPIA, Wash. (AP) - Washington state Governor-elect Jay Inslee will take office in January facing a projected $900 million shortfall for the next two-year budget ending in mid-2015, not counting money lawmakers will need to spend to improve funding for education as directed by the state Supreme Court earlier this year.
A four-year outlook released Wednesday by the Washington state Economic and Revenue Forecast Council showed that the projected shortfall for the following biennium ending in 2017 would be even larger, at $1.1 billion.
The outlook was released along with the state's quarterly revenue forecast, which showed that the income projection increased slightly - $8 million - for the current biennium that ends next summer. But it showed a reduction of $88 million for the next two-year budget cycle that begins July 1.
Inslee, a Democrat who will succeed Gov. Chris Gregoire next year, has said that he will work to make government more efficient and that he would be able to balance the state's budget without new taxes.
"There's going to be a lot of conversations to be had about ways we will have to make efficiencies, and what the real priorities are that we have to fund," Inslee spokesman Jaime Smith said Wednesday. "There's going to be a lot of hard choices to make. We just aren't going to be able to afford all of the things we have been doing."
But during Wednesday's meeting, Rep. Ross Hunter, councilmember and chairman of the House Ways and Means Committee, said that he has long stated that he doesn't think it's "numerically possible to have a budget that doesn't have a revenue increase."
He said that trends show "the growth in the economy is not matched by the growth in revenue."
"I actually don't think it's going to be numerically possible, but we're going to look at that effort and we're certainly doing that effort first," said Hunter, D-Medina.
Fellow council member, Republican Sen. Dino Rossi, said he agreed with Inslee on the issue of taxes.
"We really shouldn't be raising taxes in this environment," he said.
Smith said that Inslee's "No. 1 focus has been on jobs."
"He does recognize the severity of the economic challenges that we're facing, and he knows the reason we have those challenges is because we saw so many people lose those jobs," she said. "The most important long-term priority is on economic development."
A four-year outlook released Wednesday by the Washington state Economic and Revenue Forecast Council showed that the projected shortfall for the following biennium ending in 2017 would be even larger, at $1.1 billion.
The outlook was released along with the state's quarterly revenue forecast, which showed that the income projection increased slightly - $8 million - for the current biennium that ends next summer. But it showed a reduction of $88 million for the next two-year budget cycle that begins July 1.
Inslee, a Democrat who will succeed Gov. Chris Gregoire next year, has said that he will work to make government more efficient and that he would be able to balance the state's budget without new taxes.
"There's going to be a lot of conversations to be had about ways we will have to make efficiencies, and what the real priorities are that we have to fund," Inslee spokesman Jaime Smith said Wednesday. "There's going to be a lot of hard choices to make. We just aren't going to be able to afford all of the things we have been doing."
But during Wednesday's meeting, Rep. Ross Hunter, councilmember and chairman of the House Ways and Means Committee, said that he has long stated that he doesn't think it's "numerically possible to have a budget that doesn't have a revenue increase."
He said that trends show "the growth in the economy is not matched by the growth in revenue."
"I actually don't think it's going to be numerically possible, but we're going to look at that effort and we're certainly doing that effort first," said Hunter, D-Medina.
Fellow council member, Republican Sen. Dino Rossi, said he agreed with Inslee on the issue of taxes.
"We really shouldn't be raising taxes in this environment," he said.
Smith said that Inslee's "No. 1 focus has been on jobs."
"He does recognize the severity of the economic challenges that we're facing, and he knows the reason we have those challenges is because we saw so many people lose those jobs," she said. "The most important long-term priority is on economic development."
First, I'd like to point out that the report is pointing to a shortfall in a budget projection that wasn't realistic to begin with. As is typical, revenues were overstated, therefore, there's a big hole forecast. Until the yahoos down in Olympia put together a realistic, fiscally conservative budget with conservative revenue expectations we're going to see this story every couple years, or more plainly, you can't spend money that you don't have.
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Mike
do not even talk about tax increases until you cut of every illegal getting govt money, stop them from getting I.D., stop the fraud in section 8, food stamps ect, stop the retirement bs of working all kinds of ot your last three years to get the bigger retirement cut the number of mangers in the state, audit every dept. and SPECIAL SECCIONS YOU IDIOTS DO NOT GET PAID FOR.
Many (not all) state government managers lack the competencies required to lead and have no interest in promoting more effective ways to do business. Most (not all) government employees want to do great work, but eventually they can't take the unethical decisions and activities going on around them.
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growlerxrunner, your comments about incompetence, throwing up smokescreens to fool legislators, etc, is what lead me to write a book.
Fear monmgoring! Let the rich and those that have union jobs pay for the rest of us!
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There's plenty of money and those with union benefits and union bonuses have them!!!
It's obvious state government has become dysfunctional as evidenced by 520 floating bridge soap opera of endless scandal so why keep these clowns on at their 100K plus salaries so why not get rid half of them. I know from experience that over staffing and ignorance and stupidity galore runs rampant in state government. If one speaks out one gets the door slammed on their butt on the way out. Another is the unions. I was forced to join a union in 2005 after both Republicans and Democrats voted for union expansion in state government. Republicans thought the move would lead to more outsourcing, which it did, Democrats thought it would give them more power, which it did, lowering costs which Republicans hoped it did not. Costs went up along with waste and incompetence which led to more waste and incompetence and managers throwing smokescreens up to fool legislatures into keeping the money flowing. Fact is government inspectors often do not know how or have the knowledge to inspect that which they are suppose to inspect. This is experience speaking.
we could save a lot of money if services were denied to illegal aliens and a cap was put on public assistance to a family of 4 and stop more money for more kids welfare practices.
It's Gregoire's fault!
Ooops Sorry!
It's Bush's fault and all of the republicans in the state legislature!
Yeah! That's it! They're all bad....EXTREME........
So the Democrat balogna rolls on.
1. they will push for a new income tax proposal for fall 2013.
2.  increase sales tax .5 cents, no wait it will be a penny per dollar spent.
3. blame Tim Eyeman, and negate or ignore 1185
4. raise fees and taxes on utilities, drivers license, excise taxes (i know they just did that, but why not milk the cow some more)
5. tax pot, what person would buy anything from the state when they can get it at any local high school for a fraction of the cost the state will charge for kansas nohigh.
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How will the state tax us more, levy taxes on more services and good..........just typical tax and spend democrats..... Washington voters well you got what you wanted, time to move to mexico....
do a google search and get a picture of Gregoire and one of the Grinch and compare the two side by side, She looks exactly to a tee like the grinch. they could be twins.
Of course, Mr Grinch Chris Gregoire has done nothing but bad for the state or Wa. No wonder why Obama endorsed her, they both love to put us taxpayers in debt.Â
Dino, where are you? Save us!
 @mstipton Dino, or McKenna... either would've been much better at getting this state back under control. These liberals disgust me... they'll be the first ones whining when this state goes bankrupt
Perhaps too many people from California have moved up here. Seems we have no chance to elect people in this state who are fiscal conservatives. At this point there is a part of me that could care less if a candidate believes in performing abortions at gay weddings while smoking pot, just balance the d@mn budget!
Thanks Chrissy!
What's with the GANGÂ of Mexicans in front of Home Depot yesterday. Do they know it's illegal to work under the table? Do the people who hire them?
 @Elvis what did you find when you checked their papers?
 @tufa23 It makes less difference to me whether they are here legally then whether they are working legally and paying their taxes. Don't you agree?
Well that's one zero short of the $9 billion shortfall that was projected right after Christine was re-elected and had been touting the the fiscal health of the state during her campaign.
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Notice that big state sponsored unions never end up taking hits when the budget is overspent.
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No new taxes and spending cuts sounds like the kind of reform this state needs. I don't care if it's a democrat or republican that does it. Let's read his lips, "no new taxes", and hold him to it.
 @Obewise You know that's not going to happen. I see the writing on the wall. Mark my words. within 6 months you'll here the income tax "idea" being floated again.
More taxes coming soon..........stay tuned, boys & girls
I'll write it again: If you vote the way you've always voted, you're going to get what you've always gotten.
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This headline stinks of a set-up for new taxes, and I bet we wouldn't be seeing it, if Rob McKenna had been elected.
I just can't believe the mess we're in, if Bush and the rest of the republicans hadn't messed this state up so bad by blocking every....
What's that??? Oh, never mind....
- Emily Litella
 @William H. Bonney ....and in 2020, after eight years of Inslee, I'm sure the "educated" voters of the D-State will welcome back Ron Sims by putting him in the Governor's Mansion next....the beat will go on, just with new skin on the drum-head.
Te deficit will still be there, just a higher number, and it will still be Bush's fault......
 @Sydthepiper This time I voted with my wallet & my feet. I moved to the great state of Arizona, one of the few states with the balls to stand up for itself. I did so after living on the looney left coast for 46 years. You don't even need a permit to carry here!
I was only reading the forum because I'm still in awe at the total and complete stupidity of King Co. I think those tards only elected that loser because they just couldn't stand to have anyone with (R) next to their name.
The SUN is just now coming up here, it was well below freezing last night, but oh man can you see the stars and it'll be SUNNY & 75° again today and not a liberal for hundreds of miles! (I think there's a shoot on sight in Greenlee Co.)
 @mstipton Are you kidding? They bolted straight for the nearest WA St. DSHS office then to DOL.
Know why? Because they're such utter and complete racists here they made me, English speaking whitey actually show them papers! Yes, it's true, I had to send away for my birth certificate because these racists want me to prove who I was before allowing me to get a drivers license.
Next thing you know they'll want to see I.D. for everything else, like voting, buying alcohol, and pretty soon those racist banks are gonna want to see I.D. too...
The horror, the horror....
But not the illegals.
 @mstipton Yeah, well I'm up in the high desert, 3600' so nothing like Phoenix. More like Yakima minus the stupidity.
We are all glad you are happier somewhere else. Enjoy your sunshine come April, May, June, July, Aug, Sept, Oct.
 @William H. Bonney  @Sydthepiper if only you had stayed here to vote. When you left, the one smart voter we had was gone. woe is us.
@William H. Bonney who said Bush to to blame. I think Obama is just a guilty for not trying to fix the problem.
 @toolbox1007 Do you know who Emily Litella is?
http://www.nbc.com/saturday-night-live/video/emilys-editorial-reply/1156891/
 @William H. Bonney I'm guessing the reference went ^^^^^ over their head. Besides, everybody knows Senator Kennedy...what, when did that happen?
As I recall, Chris Gregoire had nothing to good to say about either Inslee or McKenna's apparent "plans" for budget balancing...and given the mess that Mr. Inslee was left with by the democrats, I'll bet he's glad he's not associated with that party...oh wait...
Never mind...we'll all be getting taxed to death now...oh goodie...
"Inslee, a Democrat who will succeed Gov. Chris Gregoire next year, has said that he will work to make government more efficient and that he would be able to balance the state's budget without new taxes."This is code for Tax and more spending.
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Relax ALL the laws on marijuana -- the best cash crop of the West Coast. This includes any employment barriers for people. We'll be in the black before you know it.
It's just a matter of time till Inslee says he has to raise taxes.Â
He is inheriting a mess, a financial crisis, it will take longer to fix this mess.... wait, but he's following a Democrat. That's right, that message is only used for Republicans. How did a Democrat get this position again. Oh, they all drank the Kool Aid. It's amazing all of the skeletons that come out of the closet days after the election is over.  Let's see what else pops up in the coming days that should have been brought to light months ago.   Â
 @NWlife Perhaps Gregoire told Inslee the same thing she told the voters in 2008----
"There is no deficit".---------------Yea, right. :(
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And why was this report held until after the election? Let us see, the democrats are in charge and they wanted to stay in charge even though they can't legislate themselves out of a nickle candy store without a million dollar bill. What surprises do we have in store next week?
What did you do with the 900 million I gave you last week, Jimmy? Maybe you should try to earn it mowing lawns. I'll let you use my lawn mower if you take good care of it.Â
Yeah well, it's projected that Washington will bring in 1.7 billion in tax revenue for the state over 5 years,if tea is approved for responsible sale..when you apply the math,the deficit in budget is minor
Save 50 million+ and get rid of these ridiculous state tests that our students must take to graduate.  Complete waste of time, money and education. We already have the SAT for kids going to college. The other kids need to be prepared for trade schools and the work force . . .typically, preparing for these tests do little to help prepare kids for the next chapter in their lives.
 @petes Agreed, the tests do little to prepare kids for life. As you intimated teachers teach to the test because their jobs depend of their kids doing well in them. Part of the problem I have with the tests is that they don't show the child has received a well rounded education, including civics, history, literature, the arts, music and social studies. All the while studies have shown that children who receive this type of well rounded education actually do better on most of the tests and are also much better prepared for life. I also think we need to think seriously about what kind of tracks are available to students. One article I read recently said there were companies looking for skilled welders and having difficulty finding them. We definitely need a vocational track in schools not just a college prep track.
Time to start drug testing everybody that gets any type of public assistance. Â
@CB Better yet, start putting a cap on the extra $$ per child. Set it at two children and watch the baby mamas who live solely off the gov't stop popping them out.
 @CB It wouldn't make that much difference. Only a small portion of PA recipients are users. Besides what would you do, cut them off so their children suffer even more than they do? Or put the kids in foster care which is way more expensive than leaving them in their home? No wait, you're a compassionate person so you would require them to get drug treatment and training so they could support themselves and their families.
You can thank your democrat predecessor there Jay boy.
The first cut should be no money for illegals.Â
 @agatha no money for legals either
Unfortunately the programs will be cut but not the expensive lunch on the expense reports and the overpaid management will be given raises (probably). Balance the budget by cutting management's payroll, leave the employees alone and get money for education.Thats my thoughts on the subject rather than being sarcastic as so many posting have been on the subject.