Gregoire Offers 'Unjust’ Budget

Washington Gov. Chris Gregoire on Wednesday proposed a 2010 supplemental budget that would close a $2.6 billion gap in the state’s 2009-11 biennial general fund budget with deep spending cuts.

The Democratic governor said she hopes the Legislature raises taxes next year to restore the most critical programs eliminated, but offered up the cuts lawmakers will have to approve if they shy away from hiking taxes.

“I do not support this budget,” Gregoire said as she unveiled the plan. “As required by law, it is balanced. For me, it is unjust.”

Her budget proposal would eliminate the state’s Basic Health Care Plan and Apple Health plan, which provide health coverage to 91,000 state residents, including low-income children. The plan also eliminates general assistance, cash payments for the poorest adults.

The budget would also reduce state funding for early childhood education, financial aid for college students, and funding for public universities.

The cuts would reduce the state’s general fund budget for the biennium to $30.1 billion.

Gregoire said she would propose tax increases early next year to restore some of the programs, but she didn’t say what kind. A news release said her next proposal “would eliminate tax exemptions, close loopholes and raise revenues.”

Until new revenues are found, the governor said the only option is deep cuts in social services and education. The total budget gap was estimated at more than $5 billion. Gregoire expects to fill $1 billion of the deficit with federal stimulus dollars and another $228.6 million by spending from Washington’s rainy day fund. The proposal would deplete the rainy-day fund and leave an ending general fund balance of $310.5 million.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER