Can stimulus strings be cut?

Faced with closing a projected $2.6 billion budget deficit, lawmakers have been told that 70% of their budget options are off limits meaning reductions need to occur in only 30% of spending. Here is how Governor Gregoire describes this dilemma: "Parts of our state’s budget, including basic education, debt service and pensions, are considered ‘protected’ because of constitutional mandates require these cost be paid. Other parts are considered protected, too, due to requirements imposed by the federal government when the state accepted funds under the American Recovery and Reinvestment Act, primarily in Medicaid and higher education." A recent federal audit conducted by the Government Accountability Office (GAO), however, noted that states may seek a waiver from the "stimulus strings" for Education State Fiscal Stabilization Funds.
According to GAO . . . READ MORE

State Auditor releases update on performance audit recommendations

State Auditor Brian Sonntag this morning issued a report highlighting the status of performance audit recommendations made to date. According to the report: "From February 2007 through June 30, 2009, performance audits identified nearly $3.6 billion in cost savings, unnecessary expenditures and economic benefits. Some recommendations have a financial impact, such as past costs that were questionable or avoidable, those with future cost savings and recommendations with future revenue opportunities. The figure below is focused on recommendations with future revenue opportunities or future cost savings that can be realized when the recommendations are implemented. We made 214 recommendations with future cost savings or revenue opportunities; 67 percent of those recommendations have been fully or partially implemented or are in progress, as shown below . . . READ MORE

State Auditor: "Opportunities for Washington"

The State Auditor's Office this morning released a report titled "Opportunities for Washington." In a letter to citizens State Auditor Brian Sonntag wrote (in-part): "I am pleased to present to you 'Opportunities for Washington,' our performance review of state government operations. For such a time as this, state government has an opportunity and a need to significantly change how it does business. As Governor Gregoire and the Legislature deal with the state's difficult financial challenges, this review reflects our first such effort to help. It contains ideas and recommendations to save money, to streamline government programs and functions and to provide better service to citizens. The review also identifies areas in which we can direct performance audits in the near future. Those audits are intended to identify actionable efficiencies . . . READ MORE

Newspapers comment on Governor’s budget proposal

Reactions to Governor Gregoire's proposed supplemental budget have been decidedly mixed. Beneficiaries of the programs identified for elimination have warned taxes should be raised instead of making the cuts. The majority of the state's newspaper editorial boards, however, warn that tax increases should be the last resort and state spending must be reformed first. Here are the editorials to date . . . READ MORE

Unemployment Insurance taxes to increase 54% in 2010

The Employment Security Department (ESD) today announced that Unemployment Insurance taxes for the state's employers are going up in 2010. In a release from ESD, Commissioner Karen Lee outlined the plan that will see the average total tax rate increase from 1.55 percent in 2009 to an estimated 2.38 percent in 2010 -- a 54% increase . . . READ MORE