When will Gregoire act to address her $2.5 Billion Deficit?

Redmond, WA - The non-partisan Senate Ways and Means Committee staff reports that Washington state's general fund is facing a $2.5 billion deficit beginning next year. Many states across the country are also facing budget deficits. Governors and other elected officials are proactively looking for ways to solve their budget gaps now. But Christine Gregoire has not suggested a single belt-tightening measure in response to the deficit forecast.

According to a recent article at stateline.org, Washington is one of four states with a pessimistic outlook about the 2009 budget. States across the country are considering many different options for addressing future deficits:

• At least 16 states plan to reduce spending or eliminate programs.
• Gov. Jon Corzine (D-NJ) has called for a spending freeze in 2009 and is looking to reduce the total number of state employees.
• Nevada imposed a 4.5-percent across-the-board cut for all agency budgets and is looking at another across-the-board reduction for 2009.
• Illinois is looking at privatizing its lottery.
• Maine is considering selling unclaimed property.
• Maine and Ohio plan to transfer money from other state funds to the general fund.

In our state, Washington State University and Eastern Washington University have announced they are slowing or halting new hiring in order to prepare for the state budget shortfall. Eastern Washington University President Rodolfo Arevalo noted: "If we can save money now, if we have a shortfall we won't have to cut program budgets abruptly..."

In Pierce County, County Executive John Ladenburg has told department leaders to help find 1.5 percent worth of reductions this year to address revenue shortfalls.

"State spending is up 33 percent since the incumbent took office.  Her spending has led the state toward a huge deficit. She needs to act right now.  She needs to change course and begin to reduce spending.  Unlike so many other government officials in our state and nation, Christine Gregoire is not acting to address the $2.5 billion deficit," said Dino Rossi. "The earlier she takes steps to slow spending the better for everyone, especially those dependent on government services."   

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