Governor Chris Gregoire released her 2009-11 operating budget last week.  As she herself states, it is not something that is easily loved or embraced.  She and her budget staff at the Office of Financial Management, led by Victor Moore, had an incredibly difficult job to do to balance increased spending obligations and declining revenues to the tune of over $5 billion (and climbing). 

You can read the budget highlights and other material on the governor's website, http://www.governor.wa.gov/priorities/budget/default.asp.  The reality is that times are tough and call for tough solutions.  To her credit, Gov. Gregoire did not propose new taxes or tax increases, understanding full well that those policy options can be medicine that is worse than the disease.  The governor did her best to protect K-12 education, the state's constitutional duty, plus maintain public safety and a social services safety net. 

Since a large chunk of the state operating budget is literally off limits, it means balancing it comes at the expense of some social services, natural resources and higher education.  However, how we deliver K-12 education should be seriously looked at to lower costs while not sacrificing high standards or good teachers.  Higher education is another key budget priority that will be hurt by this budget.  Yet, higher education institutions could do better in prioritizing what they offer and how they offer it.

Yet, the ink was not even dry on the budget documents when the groups who lobby for your tax money were predictably screaming that the sky was falling, that the budget was "unacceptable", that the legislature should "close tax loopholes" (read: tax incentives), blah, blah, blah.  For anyone who has been around the legislature any time at all, you have heard this all before.  Whether times are good or bad, there just never seems to be enough money to placate these groups.  They are never satisfied.

It will be interesting to see how the legislature reacts.  Usually the govorner's budget is the "low water mark" with the legislature adding back in many items desired but that did not pass the "priorities of government" test.  If the legislature does want to spend more, they will have to raise additional taxes or create new ones.  It is possible that the legislature will send a tax package as a referendum to the voters. 

What legislative leaders have not said is how they will keep spending in check--this is Olympia's biggest problem that needs to be dealt with first.  Until they do, and until they actually cut some programs we will see this process happen again and never see structural change occur.  Education, health care and the environment are all expensive and all important but when the economy is down is when use of services go up.  Spending less and saving more in the good times is a start. 

WTIA will continue to push for fiscal sustainablity and for the tech industry's priorities of a high quality education system (both K-12 and higher education), maintaining tax incentives for R&D and for the ability to offer a health plan to WTIA members.  We will resist tax increases until the state reins in its spending considerably.

If you want to learn more about Gov. Gregoire's budget, please check the links above, the attached doucment or contact Lewis McMurran, WTIA's VP of Gvernment and External Affairs at lmcmurran@washingtontechnology.org or by phone at 206-448-3033 x101.