Governor calls for spending cuts in response to revenue forecast

Washington's budget outlook worsened by an additional $238 million today according to the state's Economic and Revenue Forecast Council. In response to this news, Governor Gregoire said in a press release: “Although we believe the recession has bottomed out, it will take some time for revenues to recover. I am preparing a supplemental budget request that accounts for the revenue shortfall we have experience since May . . . The budget I signed in May was built on tough decisions that I made together with the Legislature. The shortfalls in the last two forecasts necessitate more spending cuts, as do the lawsuits that have restricted our ability to implement reductions.” The focus on spending reductions versus tax increases is commendable. Earlier this year when the Legislature was considering tax increases, state and national economists warned that such action would further damage Washington’s economy and hamper economic recovery . . . READ MORE

WPC review of Initiative 1033

In November the people of Washington will vote on Initiative 1033. The measure is sponsored by Tim Eyman and would create a new revenue limit for the state, counties and cities with the goal of annually reducing property taxes. Eyman calls Initiative 1033 the “Lower Property Tax Act of 2009.” Initiative 1033 is the latest in a series of initiatives considered by voters which seek to control the growth of state government, though it is the first to include local governments under its requirements, and it is the first to focus primarily on providing ongoing tax rebates to property owners. According to the state’s Office of Financial Management, passage of Initiative 1033 would result in approximately $5.9 billion in state property tax rebates and $2.8 billion in local property tax rebates going to citizens by 2015. At the same time state and local revenue available for spending increases would grow each year by an amount based on population growth plus inflation. Eyman argues that Initiative 1033 attempts to close loopholes created by the legislature to an earlier voter approved initiative, Initiative 601. Enacted by voters in 1993, Initiative 601 sought to improve on the shortcomings of Initiative 62 adopted in 1979. Here is WPC's brief review of the previous state revenue and spending limits, a similar law in Colorado, and of Initiative 1033: Citizens’ Guide to Initiative 1033

Governor looks to streamline natural resource agencies

Governor Gregoire's Natural Resource Subcabinet has released more than twenty “ideas” that they hope will provide “a starting point for further discussion” as they seek ways to consolidate services, improve efficiency and reduce costs within the state's natural resource agencies. Additional information and analysis of the “ideas” presented by the Natural resource Subcabinet can be found here: Ideas to Improve Management of Washington’s Natural Resources. The Subcabinet is also looking for feedback from citizens. To provide feedback on the Subcabinet’s ideas, as well as provide your own ideas, you can use the Electronic Feedback Survey or send an email to resource.reform@ofm.wa.gov. Comments will be accepted until October 28, 2009.

Appeals Court rules against GA contracting rules

The state Appeals Court Division II ruled this morning to invalidate three of the Department of General Administration's (GA) rules for implementing the competitive contracting provisions of the 2002 Civil Service Reform. The ruling affirms a May 23, 2008, decision by Thurston County Superior Court Judge Chris Wickham. The Washington Federation of State Employees (WFSE) sued to have the rules thrown out. At issue are WAC 236-51-006, 236-51-010(11) and 236-51-225. The controversy focuses on what it means to be a "displaced employee" due to an agency competitively contracting work. The state noted in its legal brief . . . READ MORE

Protestors target government spending priorities

Protests were held across the country this past Saturday by citizens frustrated with the spending decisions being made in Washington D.C. Among the local protests were rallies at the state capitol in Olympia and in Yakima. Here are some photos of the Olympia rally. When asked by The Yakima Herald why he was at the Yakima rally, sixty-nine year old Jack Weston replied: “Bank bailouts should never have happened. Taking over the car companies should never have happened,” he said. He ultimately came away encouraged. “I’m doing a small part in protecting this county.” The largest of the spending protest occurred in Washington D.C. with an estimated tens of thousands converging on the Capitol. The New York Times reports the number of protesters took authorities by surprise . . . READ MORE