Gregoire proposes new fuel tax to fund education
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OLYMPIA, Wash. (AP) - Gov. Chris Gregoire proposed higher taxes on gas, soda, candy and gum Tuesday in order to avoid more government cuts and to help fund education in response to a court order.
In her final budget plan, Gregoire said a budget without new revenues would force the closure of state parks, eliminate food assistance programs and cause additional cuts in education.
The new wholesale tax on gasoline and diesel fuel - paid by fuel distributors but likely passed on to drivers - would eventually rise to 4.62 percent. The governor also wants to extend taxes on beer and business taxes paid by doctors, lawyers, accountants and others.
"We need revenue if we're going to meet our constitutional and moral responsibility to fund education," Gregoire said. The total revenue from the new tax and tax extensions would be about $1 billion for the two-year budget cycle that starts in July.
Gregoire noted that the country's top oil companies have made billions of dollars in profits this year, "so I expect them to do this without passing this on to consumers."
She said she saw no other way to find the large amount of money needed to properly invest in the education system.
"Time is up," she said. "There is no more recess."
Gregoire said the candy and soda tax was a way to pay an award issued by an independent arbitrator in October to give pay raises to the state's home-care workers.
"Do I think these people need and deserve raises? Absolutely," she said. "I just can't do it at this point. So I've tried to find a revenue source that had a direct nexus."
Rep. Ross Hunter, D-Medina and chairman of the House Appropriations Committee, said Gregoire's budget proposal "exposes the basic structural problems that will make it difficult to build an operating budget that meets the needs of Washington's citizens and business community without changing the revenue picture."
But House Republican's point person on the budget, Rep. Gary Alexander of Olympia, said that the plan is likely "dead on arrival."
"While I can see using a few of her budget reductions, I just can't see the incoming legislature or the new governor using her overall budget or her tax increases as a starting point," he said in a written statement.
Washington state Gov.-elect Jay Inslee will take office in January facing a projected $900 million deficit for the next two-year budget ending in mid-2015.
That doesn't include money lawmakers will need to spend to improve funding for education as directed by the state Supreme Court earlier this year.
Inslee has said he will not raise taxes. Gregoire said a 2013-15 budget without taxes would have unacceptable consequences for people across the state and would hinder the state's economic recovery.
Sterling Clifford, a spokesman for Inslee, issued a written statement saying that Inslee appreciated Gregoire's "thoughtful effort and determination to address Washington's fiscal reality."
"In the upcoming legislative session, Gov.-elect Inslee will lay out his own budget priorities that reflect his vision for state government and his commitment to create a lasting economic recovery with secure jobs for Washington's middle-class," Clifford wrote.
Republican Sen. Andy Hill, who would lead the chamber's budget committee under a proposed GOP-led majority coalition, said Gregoire's budget will be a point of reference as lawmakers try to build a sustainable spending plan.
Hill noted that the state will bring in $2.1 billion in more revenue during the next budget cycle, even without new taxes.
"It's really a matter of, 'How do we prioritize that spending?'" Hill said.
Gregoire's budget, even with revenues, does include some cuts. She proposes to block cost-of-living increases for teachers, saving $360 million, and cuts funding for local government programs by $57 million. Her budget totals $557 million in various cuts or savings. Her plan would also leave about $882 million in the bank.
Overall, Gregoire's budget would total $34.4 billion in spending, up about 10 percent from the current biennium.
Gregoire said she knows that her budget proposal is not likely to stay intact throughout the legislative process.
"I think we have done an immense amount of work that will help them as they begin the deliberative process," she said. "I don't expect a rubber stamp. That's not what they've ever done with anything I've produced."
Gregoire said that she believes that lawmakers will find it will be difficult to do all that needs to be done with all cuts.
"The only way you can do it is with revenue," she said. "So I've tried to give them a path to move forward."
In her final budget plan, Gregoire said a budget without new revenues would force the closure of state parks, eliminate food assistance programs and cause additional cuts in education.
The new wholesale tax on gasoline and diesel fuel - paid by fuel distributors but likely passed on to drivers - would eventually rise to 4.62 percent. The governor also wants to extend taxes on beer and business taxes paid by doctors, lawyers, accountants and others.
"We need revenue if we're going to meet our constitutional and moral responsibility to fund education," Gregoire said. The total revenue from the new tax and tax extensions would be about $1 billion for the two-year budget cycle that starts in July.
Gregoire noted that the country's top oil companies have made billions of dollars in profits this year, "so I expect them to do this without passing this on to consumers."
She said she saw no other way to find the large amount of money needed to properly invest in the education system.
"Time is up," she said. "There is no more recess."
Gregoire said the candy and soda tax was a way to pay an award issued by an independent arbitrator in October to give pay raises to the state's home-care workers.
"Do I think these people need and deserve raises? Absolutely," she said. "I just can't do it at this point. So I've tried to find a revenue source that had a direct nexus."
Rep. Ross Hunter, D-Medina and chairman of the House Appropriations Committee, said Gregoire's budget proposal "exposes the basic structural problems that will make it difficult to build an operating budget that meets the needs of Washington's citizens and business community without changing the revenue picture."
But House Republican's point person on the budget, Rep. Gary Alexander of Olympia, said that the plan is likely "dead on arrival."
"While I can see using a few of her budget reductions, I just can't see the incoming legislature or the new governor using her overall budget or her tax increases as a starting point," he said in a written statement.
Washington state Gov.-elect Jay Inslee will take office in January facing a projected $900 million deficit for the next two-year budget ending in mid-2015.
That doesn't include money lawmakers will need to spend to improve funding for education as directed by the state Supreme Court earlier this year.
Inslee has said he will not raise taxes. Gregoire said a 2013-15 budget without taxes would have unacceptable consequences for people across the state and would hinder the state's economic recovery.
Sterling Clifford, a spokesman for Inslee, issued a written statement saying that Inslee appreciated Gregoire's "thoughtful effort and determination to address Washington's fiscal reality."
"In the upcoming legislative session, Gov.-elect Inslee will lay out his own budget priorities that reflect his vision for state government and his commitment to create a lasting economic recovery with secure jobs for Washington's middle-class," Clifford wrote.
Republican Sen. Andy Hill, who would lead the chamber's budget committee under a proposed GOP-led majority coalition, said Gregoire's budget will be a point of reference as lawmakers try to build a sustainable spending plan.
Hill noted that the state will bring in $2.1 billion in more revenue during the next budget cycle, even without new taxes.
"It's really a matter of, 'How do we prioritize that spending?'" Hill said.
Gregoire's budget, even with revenues, does include some cuts. She proposes to block cost-of-living increases for teachers, saving $360 million, and cuts funding for local government programs by $57 million. Her budget totals $557 million in various cuts or savings. Her plan would also leave about $882 million in the bank.
Overall, Gregoire's budget would total $34.4 billion in spending, up about 10 percent from the current biennium.
Gregoire said she knows that her budget proposal is not likely to stay intact throughout the legislative process.
"I think we have done an immense amount of work that will help them as they begin the deliberative process," she said. "I don't expect a rubber stamp. That's not what they've ever done with anything I've produced."
Gregoire said that she believes that lawmakers will find it will be difficult to do all that needs to be done with all cuts.
"The only way you can do it is with revenue," she said. "So I've tried to give them a path to move forward."
"Gregoire said a 2013-15 budget without taxes would have unacceptable consequences for people across the state and would hinder the state's economic recovery." How can taking more money away from me help my economic recovery?
Spoken like a true Democrat. You have money? Give it to me. Government know what's best for you.
Just go away, grinch.....
This is a bunch of crap. Yeah she wants to raise our taxes for "education", but how many times have they done that! As soon as they get the extra revenue they will stick their hands into the cookie jar for all their special projects and next year it will be raise taxes again for education. If they don't get the money they will threaten the jobs of teachers, police, fire fighters, and emergency responders.How about we downsize our State Government so we meet our budgetary obligations. We can start with across the board employee contributions to their healthcare, retirement, and benefits package. That should free up some capital.
in 2008 our State "spent" $32 Billion Dollars!
in 2011 our State "spent" $33.2 Billion Dollars!
But if you were to listen to the "budget" people, the State has cut over $40 billion from our State budgets each year.
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They may have cut $40 Billion in "PLANNED" spending, but they haven't cut spending by any means.
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We should insist we take the 2008 Budget, and spend the same exact numbers in each and every Department, then we might even make up for the "PROJECTED" shortfall in revenue!
The State should fully fund Education with the funds they already receive!
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Taxes on our fuels and motor vehicles should be for transportation issues ONLY!
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Consumption taxes are used to socially engineer reduced consumption, using those taxe types to fund critical services creates an unsupported tax base. As consumption falls (as desired by this taxation policy), then new and more taxes have to be "found" in order to keep funding where it needs to be for proper education.
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Besides, we all know once collected these taxes go to the General Fund to pay for "everything". These same types of "promises" were made when we decided to have a lottery. The State said it needed the money for "education", but didn't "dedicate" the money to anything but the General Fund, which pays for everything else and barely touches the educational needs/requirements of the State.
She sounds like a broken record.
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How much of that tribal casino revenue is being taxed for the state?
 @Obewise Are you kidding? We can't tax the Indians! Our Ancestor damaged their lives "forever", so now WE have to keep supporting each and every new Tribal member for perpetuity. HMMM, maybe we could get the "British Empire" to support us for all those years of mistreating OUR Ancestors??? (hopefully everyone can read the intended sarcasm)...
How about the state levels the playing field ?  legalize casinos in certain areas. Instead of complaining about tribal casinos with one hand behind your back,compete .  Allow each county one casino,allow smaller counties to place slot machines in larger county casinos{as the tribes do } .
Renegotiate Government Workers' entitlements...they are impossible to keeo solvent!! Ms. Gregoire, get out of our lives and leave us alone!!
How about we cut back on giving illegal immigrants food stamps, bet that would save  a LOT
how about we stop all funding to illegal immigrants period. why are we supporting criminals that are not in jail
What if we actually collected tax revenue from the casino's ?Â
The state government keeps complaining that they don't have enough money to fund infrastructure, going as far to propose new toll taxes to help pay for said infrastructure, and now Gregoire is proposing using raising fuel taxes to pay for education?  This ideological governance is getting ridiculous - what is going to happen to the economy of this state when fuel prices spike again? I'm opposed to using fuel taxes to fund anything not related to transportation concerns.
Looks like we need to start buying more Lotto tickets to fund the schools. Oh, wait a minute. That money doesn't go to schools.
Get out of office  Miss piggy you done a nuff damage
and you watch this will not goto education just a nother way for them to take for there fat bank accounts your fired Gov. Chris Gregoire FIERD
 @Getsome It is obvious that the money spent on YOUR education was a waste.
You're*
@Furd  obvious your a fool,
Hey teachers' union (WEA)....how do you like them Democrats now?
Two things for KOMO to do:
1. Get an accounting of lottery proceeds and find out why they are not dedicated to education as we were promised, and then find out who made that decision and publish the names here.
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2. Find out how much the state has wasted on school testing since the WASL was first conceived in Booth Gardner's or whoever's mind...all the money spent on development, printing, training, mailing, grading, rewriting, reprinting, consultant fees, coffee and donuts at meetings, new bureaucracies, specialists in the schools, everything! Leave no stone unturned. How much has it cost? Why has no one done this?
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Teachers haven't had a cost of living raise for several years. In fact, this year teacher salaries were cut.Â
 @Bernard Gui Sorry, that's a no-go. You are asking them to do "reporting" as opposed to Fire In Ballard! News at 11!
She apparently was never taught that when your piggy bank is empty you can't buy anything more and, here is the most important lesson, it is wrong to go steal it from the piggy bank of the kid next door. Honestly governor Christine, you never figured out that you didn't have a revenue problem. You had a huge spending problem.
Hmmm. Seems to me this politician sold us all a bridge under Referendum 48 (or was it 46?)  to raise gas taxes to fix the road system.   She FAILED then. Now she thinks if she raises our taxes again it will fix something else? WTF? Inslee is of the same cloth as this lying sack of dog dung. FIX THE ROADS WITH THE GAS TAX!!!! Step 1 should be to provide bonuses for finishing on time and bigger bonuses for finishing quicker. PREVAILING WAGE encourages these "workers" to take their time.
NO MORE DAMN GAS TAX!
I am all for taxes......but a gas tax to pay for education....wtf
How about a gas tax to pay for......wait for it.......roads or bridges or transit.
LOL......I expect them (oil companies) to pay this new tax rather than pass it along to the consumer.....Really? Your absolutely brilliant........I'm sure they are just willing to pass over profit to the State........You have been in the public sector way to long and you forgot that the rest of the World operates for PROFIT.....That means they balance their expenses to the revenue to generate profit. What a concept if the Government and the elected officials could actually run a Business/Government for Profit.
 @DinkorSink How some people can't understand, that EVERY TAX on a business is "passed" along to the Customer, otherwise the "owners/investors" wouldn't be running a business to begin with. I guess some people have been on the Government Dole for so long that they don't remember how to "create" revenue or "profit" from anything and that every business owner must be independently "rich" in order to stay in business and turn all profits over to Government for "equalization" and "distribution".
Didn't she already try this?
NO more gas tax! Stop the over regulation. We  must balance our own check books. Cut back more. Raise ferry rates!  just cut back. Try it sometime Grego- ire.
Let them eat cake.
I wish I could balance my checkbook like this in MY house...oh yeah....I wouldnt have a house for long
'Gregoire's budget, even with revenues, does include some cuts. She proposes to block cost-of-living increases for teachers, saving $360 million, and cuts funding for local government programs by $57 million. Her budget totals $557 million in various cuts or savings. Her plan would also leave about $882 million in the bank.
Overall, Gregoire's budget would total $34.4 billion in spending, up about 10 percent from the current biennium.'
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Someone please explain the logic here. 557 million in cuts, and a 10% increase in spending?
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What the hell kinda math is that when the red ink is all over the place?
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 @bobalouie It's called "government math." If you did it, you could save two hundred grand by NOT buying that Bentley you like so much, while because your actual spending when up from $50k to $60k because you needed a new roof, your spending went up 20% while saving 400%. Gott'a love it. Baseline budgeting is a scam almost as bad as the big Wall St Banks.
Cut C.P.S.
Ok here is the only solution i see .... all government officials will have their pay cut to their performance, then we hire an outside company to manage the books to eliminate waste.
How about a cut in overpaid government officials income?
No more frikin taxing gas!! It just got down to a reasonable amount!!
The state lottery was supposed to be 'schools only'. That was GREAT! Then the democrats got hold of the proceeds. So much for that. The last gas tax was supposed to fix pot holes. So much for that.
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New gas tax for schools? I thought lottery took care of that. Hahahahaha......
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So many stoopid voters in our state.
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between obama and gregorie, they will solve all our problems.ha ha I agree on the stupid people, what were they thinking.?
Step 1 - point to a problem in a strongly supported government-run program.
Step 2 - ask to raise taxes to fund that program
Step 3 - implement tax to support said program
Step 3a- shift other funding streams away from said supported program to other programs that the pols like
Step 4 - plead poverty, return to step 1 and repeat
Anyone remember how the Washington state lottery was enacted? Lets pay for education!! Then it all went to the general fund. These people are a one trick pony!!
Yeah, like that money is actually going to go towards education! I'm not going to hold my breath. Like true Democrats, our fine governor and legislature will find something else to piss the money away on! Can you say buying more votes???
Hell NO !
Rather than fixing the spending problems this state has once again the D's down there just want to raise the taxes again.... Thats right the King county sheeples sent in the same batch of tax and spend more than they have group!!! You get what you voted for and the rest of us have to pay for it again!!
Off topic I know, but I just have to say again how horrible this new comments company is. The functionality is deplorable. It's not user friendly at all. Wake up KOMO. This is a #FAIL.
 @JCCBlvu Yep... This thing is the pits. The lack of spell check has that 90's feel to it. Who picked this? Sheesh. About the only good things the quick signoff.
Big suprise...I expected nothing different from her on her way out. Gee here's a concept.. Try living within your means like the rest of us have to do. If there is no money, then we tighten our belt and do the best we can with what we HAVE!!!!
Let her propose a budget. She's gone in a month.
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Gas taxes are for roads. We already have some of the highest gas taxes in the country. If there has to be money for education, tax those who have kids in school. Tell the teachers union to take a hike and base teacher's salaries on the quality of they work they do. Stop most programs that don't directly teach kids. Get back to core subjects and require that kids get passing grades and not lower the graduation requirements.
 @Veteran Actually we have the highest gas tax in the country tied with South Carolina. Between her 9.5 cents for roads and her 4.5 cents for schools we will have the highest by 14 cents!
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