More on the Governor's Budget Reduction Alternatives
About two weeks ago, Governor Gregoire released a list of budget reduction alternatives — both her preliminary choices for cuts ($1.65 billion) and additional alternatives ($3.84 billion). (She will officially propose a 2012 supplemental budget later this month.) She also includes additions to the reserve of $390 million (from delaying the June 30, 2013 apportionment […]
November 08 , 2011 - Emily Makings
New Brief: The Budget Arc: State Spending from Expansion to Recession, 2003-2013
Our latest policy brief looks at state spending trends from 2003 to 2013. The recession isn’t the only reason the state budget situation is such a mess. Spending choices made in flusher years are also contributing factors. The numbers we cite for the 2011-13 biennium are as budgeted — they will be cut further. The […]
November 02 , 2011 - Richard S. Davis
A look at the budget math for the special legislative session (and the general)
In my column in The News Tribune this morning, I examine the tough math facing lawmakers and the governor as they try to balance the state budget, which now faces a $2 billion gap between available revenues and planned spending. The economy, under the most optimistic growth scenarios, will not grow fast enough to fill […]
October 31 , 2011 - Richard S. Davis
Boeing CEO explains what business wants from the other Washington
A good op-ed by Boeing CEO Jim McNerney appears in today’s Wall Street Journal. For the good of the nation, our elected leaders must now find it within themselves to pass sound laws, regulate judiciously, and put aside escalating tactical political battles. If the super committee succeeds [in its deficit-reduction mission], the White House and […]
October 28 , 2011 - Richard S. Davis
Governor wants state workers to pay more for health care benefits…they decline
State workers enjoy significantly richer health care benefits than do most private sector employees, as documented in this Thrive Washington paper. Currently, Washington pays 88 percent of the premium costs for state employees for individual or family coverage. In 2003-05, state employees paid, on average, 16.3 percent of the cost of their coverage (up from 6 percent in FY2001). […]
October 28 , 2011 - Richard S. Davis
Taxes on table in NY, Colorado; California governor wants pension reform
As Washington lawmakers look at bleak budget options, they may find some guidance in proposals elsewhere. Colorado voters decide the fate of Proposition 103 next Tuesday. Stateline.org describes it this way: Proposition 103, a measure that would increase sales and income taxes to provide money for public education. The controversial measure, which would generate $2.9 […]
October 28 , 2011 - Richard S. Davis
Gregoire on Cutting $2 Billion from State Budget: "Dreadful"
Consider Gov. Gregoire's press conference yesterday the kickoff for the official annual budget contest (it just doesn't seem appropriate to call something this consequential a "game"). As Austin Jenkins writes in the Washington Ledge, the conference had an air of deja vu. Throughout the recession, we've witnessed many such announcements, with many of the same […]
October 25 , 2011 - Emily Makings
Economic Assumption Changes for WA's Retirement Systems
Yesterday the Pension Funding Council met and agreed to make changes to the economic assumptions of state retirement systems, including lowering the investment return assumption from 8 percent to 7.9 percent for the 2013–15 biennium. Additional reductions in later biennia were not agreed to at this time. At the end of August, the Office of […]
October 14 , 2011 - Emily Makings
Boom and Bust
The top story in Stateline today is all about Washington: “Boeing and Microsoft boom, but Washington State busts.” It’s a downer of a story, which will be no surprise to anyone that’s been paying attention to the state budget over the last few years. The article says that Washington’s budget problems stand out from those […]
October 11 , 2011 - Kriss Sjoblom
Monthly State Revenue Collections Exceed Forecast by $10.6 million
The Economic and Revenue Forecast Council issued its monthly Economic and Revenue Update today. For the September 11 to October 10 collection period, collections exceeded the forecast by $10.6 million (1.1%). Quoting the Update's summary: The U.S. economy did not worsen in the last month, but the outlook remains extremely uncertain. The Washington economy is […]