Yesterday the second paper in the Thrive Washington series was released.  Nine Steps to Budget Sustainability in Washington State recommends changes to the state budget process and highlights areas requiring special attention.

The steps are:

1. Manage the size and compensation of the state workforce to improve efficiency.
2. Improve budget transparency.
3. Reinstate a firm expenditure limit.
4. Implement sound pension reforms.
5. Expand use of the State Efficiency and Restructuring Account.
6. Examine inventory of real property assets for possible sale.
7. Leverage the rainy day fund to protect against future downturns.
8. Better manage debt service.
9. Integrate priority-based budgeting with performance reviews.

The bottom line:  Short-term fixes, such as those used in the 2009-11 budget cycle, are simply not feasible going forward.  As we say in the paper, “The reset must look beyond the current crisis and address our state’s enduring structural deficit.”