State lawmakers face $1.2 billion shortfall
OLYMPIA, Wash. (AP) - Washington's budget shortfall has grown to $1.2 billion, officials said Wednesday, as increased reliance on government services overpowered relative stability in the state's economy.
The state Economic and Revenue Forecast Council cited higher-than-forecast expenses in areas like Medicaid as the cause of new budget trouble. Government revenues remained stable, something Gov. Jay Inslee's budget director cited in calling the forecast relatively good news.
"It could have been worse," said David Schumacher, director of the Office of Financial Management.
Forecasters say the revenues for the next budget cycle could still fluctuate dramatically in either direction. A variety of outside economic forces could help or hurt the state, including how Congress handles its recent budget cuts, Europe's economic troubles and whether the Chinese economy slows down.
The state projections assume the automatic federal budget cuts, which impacts pay for workers at Joint Base Lewis-McChord and elsewhere, will be resolved by the middle of the year. Steve Lerch, the state economist, said those cuts would cost the state about $6 million a month if they remain in place.
Lerch was optimistic about strong automobile sales and construction activity in the state.
Budget writers entered the year with a roughly $1 billion shortfall and had expected that the numbers may get worse. The Legislature is separately under court order to add more money - perhaps another $1 billion - to K-12 education.
Some Democrats have talked about new tax revenues - or the extension of temporary taxes - to help balance the budget, but Republicans say the Legislature can finish a budget without new money.
"In general, the goal is not to extend expiring taxes and also not to introduce new ones," said Republican Sen. Andy Hill, who is leading budget efforts in his chamber. "The goal is to live within our means."
Democratic Rep. Ross Hunter, the top budget writer in the House, said he finds it hard to resolve the state's budget shortfall without looking at revenues. He noted that costs are on the rise, with basic things like inflation, health care costs and more residents. State employees have already gone through job reductions and remaining workers took temporary pay cuts expected to be restored in the next budget that starts in July.
Lawmakers are expected to release their budget proposals in the coming weeks.
The state Economic and Revenue Forecast Council cited higher-than-forecast expenses in areas like Medicaid as the cause of new budget trouble. Government revenues remained stable, something Gov. Jay Inslee's budget director cited in calling the forecast relatively good news.
"It could have been worse," said David Schumacher, director of the Office of Financial Management.
Forecasters say the revenues for the next budget cycle could still fluctuate dramatically in either direction. A variety of outside economic forces could help or hurt the state, including how Congress handles its recent budget cuts, Europe's economic troubles and whether the Chinese economy slows down.
The state projections assume the automatic federal budget cuts, which impacts pay for workers at Joint Base Lewis-McChord and elsewhere, will be resolved by the middle of the year. Steve Lerch, the state economist, said those cuts would cost the state about $6 million a month if they remain in place.
Lerch was optimistic about strong automobile sales and construction activity in the state.
Budget writers entered the year with a roughly $1 billion shortfall and had expected that the numbers may get worse. The Legislature is separately under court order to add more money - perhaps another $1 billion - to K-12 education.
Some Democrats have talked about new tax revenues - or the extension of temporary taxes - to help balance the budget, but Republicans say the Legislature can finish a budget without new money.
"In general, the goal is not to extend expiring taxes and also not to introduce new ones," said Republican Sen. Andy Hill, who is leading budget efforts in his chamber. "The goal is to live within our means."
Democratic Rep. Ross Hunter, the top budget writer in the House, said he finds it hard to resolve the state's budget shortfall without looking at revenues. He noted that costs are on the rise, with basic things like inflation, health care costs and more residents. State employees have already gone through job reductions and remaining workers took temporary pay cuts expected to be restored in the next budget that starts in July.
Lawmakers are expected to release their budget proposals in the coming weeks.
"There is no deficit."----Christine Gregoire's infamous words, and now her $1.2+ billion
deficit legacy.
Drop the 522 project and the moronic tunnel, there fixed that, nextâ¦..
This problem is not going away anytime soon. The Government is obviously involved in spending money on things that they should not. I prepare taxes (for a living) and am amazed at how much some retired Gov't workers make. 3-4 k per month seems like a reasonable amount from one(1) pension in retirement, but there is clearly a situation where it is out of balance. Retired people often have more than one retirement income stream, but there are those with only Social Security which is not enough in many cases. Â I have prepared several tax returns for some who make near or over 100k in retirement from their Gov't pensions. This amount is not all they make as they usually have other pensions and revenue sources. Â
I prepared a tax return for someone who is retired and worked for a Gov't contractor last year (the US Gov't paid the salary) in the Middle East with a salary of over 180k, plus a pension of over 36k, plus Social Security, plus spousal income of nearly 200k.... then he comes home and collects over 6k in unemployment benefits. We, as a society cannot have Gov't as big as it is and afford it. I do not want to cut back on what was promised to those who have worked and earned their pensions, but moving forward, we must do a more efficient job.Â
@The Truth you have very nicely addressed why we need a different system.  The system the way it is encourages corruption.  All it takes many times is a vote to ensure they have us paying for lavish lifestyles for they rest of their lives and ours...We are literally working to support the lifestyle of the wealthy and their family members.  Change can NOT come through the vote at this time.  It would take far too long and have little effect.  We need a new system that allows the common person to be represented.  We also need to vote OUT life time benefits and make it retro active.  Â
@The Truth government workers have better pay and benefits than their civilian counterparts. and have union backing when they play the bully card.
Here is one perspective when it comes to raising taxes to fund social programs (and roads, education etc. . .) My taxes go up. I have less "disposable" income since i am paying more to the tax man. I have some money saved for home projects. But this is less money than i had last year since i paid more in taxes this go-around. I need a new fence, and i could probably afford the installation by a company. But since my taxes are more, i will enlist the help of family and neighbors and save the cost of installation. A couple of laborers are out of work for a couple of days. This scenario plays out far more than people think. so we raise taxes, have rising unemployment, and increase the dependence on gov't social programs.Â
but we have somehow found the money to fund the college education of chidren of those here illegally? did i miss something?
BUT, we have enough money for another stadium to support another loosing team.
Didn't the dems figure this out 6 years ago?
Weird...
legalize non-indian casinos and tax them and indian casinos
@Thedudeabides Why would we tax the Indians Casinos?  Just because they came up with a great way to make money, we have NO right to it!  This is part of the problem, people wanting to put their hand in someone else's cookie jar!!  We need to make changes within the existing system.  We have to look inward at our finances and not outward at what we can take!!!  Â
@Joy Whitney how about charging them for use of our infrastructure, courts, social welfare programs and hitting them with import/export taxes? A sovereign nation doesn't need to take from another sovereign nation, right? Or is that somehow different?
@chandler , I dont agree with your ideas of greed.  They are legal citizens and have every right to all social and economic advantages of being a citizen.  You are looking for some for of fairness with the Indians and the deal they made with our government?  At the very least we can try to stand by our word.  Or maybe you would like to see the agreement changed?  Â
We could cut back on millions of dollars just by changing the PREVAILING WAGE for all state workers and all bid jobs. Â The wages are ridiculous and pay up to 3 times the wage of a private business. Â We could get so many more things accomplished just by changing this law!!!!!Â
@Joy Whitney The first pay cut should be the legislators, their perks and expense accounts. Then go after the governor and other elected officials.
@Joy Whitney    So you think that all of the little people should work for less? The top 10%%%%%%%% should share more with both their workers and their government. It worked in the 50's and 60"s.
%s
"The goal is to live within our means." Yeah, too bad none of them are capable of doing it like the rest of us, assuming they've even heard of that concept.
@Zoso thats funny... lol .lol the gov stared out on a loan and people cant live with out it and r let to do so. why stop now ? oh right, that just cant happen and get over and in to it cuz thats how money started. and till money dosen't work anymore is when one will live with in ones means unless your on walfare! and not selling drugs i might add. really who can live off of within their means? a goal? no try politics and their bs.and then wake up. home ownwr you must not be or r in your 70s?
@maggie112Â Except I'm not a politician who's in charge of taxpayers' money which usually gets spent recklessly. Completely different story here pal!
People in the real world have wants and needs also, just like government. We may want a new car this year or European vacation or whatever. But we know if you can't afford it, put buying it off until maybe next year. Why can't government do this? There is many things they can put off buying at this time. Maybe next year if things get better.
"It could have been worse," said David Schumacher[.] Â Taken right out of Obamaâs playbook.It could also be better if they'd learn to better manage money! Ugh!!Incompetent idiots!
@Bianca That comment ""It could have been worse," said David Schumacher..." made me realize we're in serious trouble! There isn't a lesser degree of worse..... It's what it's... worse.
Democrat Ross Hunter still owe the children's guaranteed education trust "GET" fund more than $350 million from 4 years ago when he raided the trust fund for his cronies.  Please watch the TVW Siene Die and James McIntire, State Treasurer and Chair State Finance Committee, report on Debt Affordability.  Ross Hunter need to be tossed out of office for stealing from the children's trust fund. Â
Why is balancing the budget so hard for these people to do? I think the problem lies with voting people into office who have no business being there. They want in so they can get a free ride off of the taxpayers back once they get out of office. Not only on a local level but a national level. You wouldn't hire a lawnmower mechanic to build your house. I wonder if these same people have problems balancing their family budgets!
@donner Of course they do.  Research how many Government employees are behind in their taxes?  And child support!  It's a national disgrace! Â
"Democratic Rep. Ross Hunter, the top budget writer in the House, said he finds it hard to resolve the state's budget shortfall without looking at revenues"
Spoken like a true Democrat. I wonder if he thinks the same way about his family finances.
Easy fix. Stop funding the military industrial complex. The trillions saved from deep cuts to the military would quickly turn this country around. We spend massive amounts on war.Â
Also, end all the tax loopholes to the tax code. End the ability for corporations and individuals from avoiding paying taxes by opening offshore tax accounts. Want to evade taxes? Get out!!!Â
@HallandOates  I was unaware that the state spent trillions on war. Who told you?
@Goodwin Nothin' like war(s) on credit... Why pay for today when you can enslave generations to debt tomorrow?
@Funky-Munky What wars is this state funding with credit. Who told you we were?
@HallandOates Nope, you will see in the near future the right crisis develop to keep the military funding comin'! Our leaders have been instructed to make as many DIRE situations as possible to deflect any talk of budgeting...
@Funky-Munky @HallandOates You're right. This country doesn't know what to do without a war or enemy.Â
WHAT HAPPENED TO A STATE LAW WHERE THE BUDJET HAD TO BALANCED? DID QUEEN CHRISTEN SAY HELL WITH IT AND WENT IN THE RED ON PURPOSE?
@naptyme48Â That was for show... then she looted and pillaged.... Now she's gone to D.C. to get some of that real money...
Simple easy fix drop the unfunded liabilities and make the state workes save for their retirments like the public sector and if they don't like it fire them and hire new workers.
@Exiled_Patriot
I work for crap ($14/hr after 6 years), have no striking rights, put myself in danger yet receive NO hazard pay (even under the best circumstances, the nature of our work is unavoidably dangerous), and have been subjected to cut after cut so that we can keep paying other people my age to sit at home and play xbox and smoke weed (under disability: "depression").       Â
.....I pay for my retirement out of every check automatically. Not accounting for people like you, I signed on to pay extra, as well. I could REALLY use that money, but I refuse to touch my retirement. Why do you think YOU can have it?? It's nearly all I have at this point. For new hires, that's fine. I wouldn't have minded, had they informed me there was a new system. It's the taking away what I already worked hard to save that I mind.
As far as the health care goes, more is usually deducted than I would have spent just paying cash at the doctor's office.
PS: Take a look at our union contract(s) before you decide what you want to take away from us. Â Â http://www.wfse.org/our-contracts/general-government-contract-info/
@GovernmentRobot16k13t @Exiled_Patriot and what is your Job? That you put yourself in to harms way? Pray tell? and why do you think I can have it? Because My Tax dollars pay your wages! That is why! Don't like your job? Go find a better one.
@Exiled_Patriot My guess is that he is a prison guard. I personally know a number of them and it is no cakewalk. Would you prefer some street corner panhandler have the job of keeping the bad people out of YOUR neighborhood?Â
Would YOU take that job?
@Exiled_Patriot
Bingo! Â WA is looking at $5 billion in unfunded pension liabilities. Â Â
http://www.washingtonpolicy.org/blog/post/average-washington-state-pension-benefits
@Opus8no5Â @Exiled_PatriotÂ
Did I miss something here? Â According to washingtonpolicy.org 12 of the 14 retirement systems are fully funded. Â I'm not so sure about this. Â Are these even accurate numbers? Â Something seems fishy. Â I always thought that the TERS system was underfunded altogether. Â One thing I know for sure is that the LEOFF retirement system is fully funded. Â The other guys not so much.
@Exiled_Patriot Yes... punish the little people for years of Big Government! Give the Three Branches of Government a free pass right?
@Funky-Munky @Exiled_Patriot well lets see unfunded liabilities = not able to place on the budget table. Union wages union retirements that should never have started in the first place. back in the day the government worker had a low wage. Yet had a great retirement plan. Now they have wages that if they are placed next to the private sector are over 75% higher. Then they still have their great health care and retirements. Here is the real deal people who work in government are paid by the tax payer. The tax payer should have a right to tell the employee what the wage is going to be. not a union thug and political hack that keeps the quid pro quo going to stay in power.
@Exiled_Patriot My wife is a DOC employee who is making 18% less than the equivalent job in the private sector. Our health care has a $1000 "prepay" requirement, then only pays 80% of the remaining. We paid over $18,000 in health care expenses because of her cancer treatments last year.
Tell me again how the non-management state workers are getting rich?
@Linc239Â Blame Bush? Kool Aid? Jim Jones? Nope, smartypants I blame them all! How hard is that to figure out? I also blame ourselves for letting the insanity continue...
Funky Monkey must have drank that kool aid also. Blame bush.. If I remember correctly the Dems voted for these wars also which included HLS Easy to blame than take repsonsiblty u get what u vote for.. I can say I didn't vote for the Socialist Party..
Syria? Libya?
@Exiled_Patriot Think on a larger scale.... How's that Homeland Security working for you? You do realize it grew the government 3 fold don't you during the reign of "terror" of Bush jr.? How's those war(s) on credit working for you? How's funding Israel working out for you?
Pretty easy to fix. Just quit sending our income taxes to DC. Use what they need here first then send the rest to that giant hole in DC. The court judgement was flawed and should be appealed. Plenty of money is being spent on schools its just that the labor costs are too high. Cut the salaries and really cut the extravagant pension benefits and then there's plenty of money. Just boils down to that age old problem of greed. The more they inflate the salary and benefits of government workers the less money thats available to help the needy.
@Blindman There's nothing easy about what's coming our way.... many will suffer, many will have nowhere to go and most of all food will be scarce for all! (just a thought)
It was bound to happen sooner or later. Those who pay the biggest percent of the taxes can no longer afford to pay for those who pay very little or none at all. The government is complaining about their expenses going up at a time when the taxpayers are feeling the same pinch. Yet Olympia keeps getting involved in more and more new projects that have no funding adding billions more to the shortages.