State Revenue grows, reserves shrink
At a time when virtually every business, small or large, has had to re-size or re-invent itself to simply keep the doors open it appears that the state of Washington may finally be coming to grips with the need to do the same.
Governor Gregoire's web page talks about a Committee on Transforming Washington's Budget. About the committee the governor says, "I have asked these individuals to jumpstart the questioning of assumptions underlying the current budget – in effect, to serve as a sounding and advisory board for hard budget decisions."
While we applaud the Governor for seeking the advice of "leaders from all walks of life" a review of the list reveals far too few of the voices belong to business owners, those men and women who have made similar hard decisions in their own businesses.
State Senator Joe Zarelli, in a recent radio interview on Seattle's KIRO radio talking about his reaction to the Revenue Review released on June 17, which indicated revenue for the state would be up said, "It's up but it's down."
Zarelli pointed out that the state had $450 million in reserves on the balance sheet when they concluded the special session but with the revised forecast those reserves now stand at only about $250 million. He went on to say that all of the increase came from the package of new taxes and tax increases and that nothing really changed when it comes to what the state is funding. The state, Zarelli said, will still be faced with a need to find several billion dollars to balance the 2011-2013 budget.
A withdrawal from the state's rainy day fund was used to eliminate a portion of the $2.9 billion short fall in the current budget. Those voting to use the fund argued the only options were to either use that money or raise that sum through additional taxes.
There is at least a third alternative, which is to cut costs. Isn't that what every business is faced with when revenues fall?
We agree, tough decisions need to be made if the state is to budget at a level it can afford. But we don't believe these tough decisions can be made by some of the very organizations' representatives who lobbied the legislature to fund the very programs and agencies that may now need to be cut.
In addition to the advice of the Committee, the governor plans to hold public hearings around the state (including in Vancouver on July 27 at WSU Vancouver). The hearings are intended to share what decisions the state is facing and what money will be available to fund those decisions. At the same time asking what services we all expect state government to deliver.
Given all this new advice we hope that work already completed isn't overlooked. The 2008 Priorities of Government Report, still on the State's website, arguably ranks the highest priorities of the state. Each service area, public safety as an example, lists that area's priorities from most important to least. Rather than starting over why not revisit this work, assign budget figures to the priorities and then ask if we should or can support that priority at that cost?
