Local Legislators: Raising State Revenues Next to Impossible This Year

Budget concerns dominated a packed town hall meeting with 48th District lawmakers, who answered questions from residents and outlined some of the financial challenges Washington state faces this year.

More than 150 residents attended last week's (March 12) meeting at with Sen. Rodney Tom (D-Bellevue) and Reps. Ross Hunter (D-Medina) and Deb Eddy (D-Kirkland).

The meeting was ahead of the recent 2009-11 revenue forecast, which projected . The forecast for revenues during 2011-13, the biennium budget that the Legislature is currently grappling with, is dimmer with $31.9 billion expected in revenues, which is $698 million less than the previous forecast.

Residents last week raised concerns ranging from state revenues to education cuts and the stormwater bill. A contingent of teachers attended, and a portion of the discussion was devoted to questions about teachers’ pay and college tuition increases.

Redmond residents Nick and Tracey McWilliams said that though they are very busy, they came to the meeting out of concerns about the political and economic climate here.

“A lot of things are out of kilter; I’m concerned with the growing schism between those with a lot of resources and those with needs,” Nick McWilliams said. He expressed concern about how adamant the legislators on hand were that revenues could not be raised.

“It’s disconcerting how many times they say it’s not going to happen because there’s not the votes,” he said, adding that overall he was heartened by the way the legislators engaged with residents and answered questions thoughtfully and directly.

One of the issues the Legislature faces this year, Hunter said, is the consensus that increasing revenue is next to impossible. Most bills that would do so are being interpreted as raising taxes, and thus must be passed by a two-thirds vote in the Legislature. That’s simply not feasible this year, said Hunter, who chairs the House Ways and Means Committee.

“There was a poll in November, and it’s pretty clear that tax increases won’t pass right now. Our job is to write the best budget we can,” given that reality, he said.

The state is expecting a decline in revenue of between $500 million and $1.2 billion, Hunter said, which is a more optimistic appraisal than he would have given just weeks ago.

The budget crisis is spurring a lot of last-ditch and controversial efforts to cut spending and move funds around. Hunter said there is virtually no capital budget, and state employees are facing furloughs that amount to a 3 percent salary cut.

Tom said one of his focuses this year as chair of the Higher Education and Workforce Development Committee is a recommendation to allow higher education institutions to set tuition rates. Washington is one of only four states in which the Legislature sets tuition rates, he said, and state expenditures are failing to keep up with the same baseline spending as other programs.

“In higher education, to get back to the baseline means hikes of 25 percent a year. Everyone agrees that’s not acceptable,” Tom said, adding that something needs to be done to avoid a serious compromise to the quality of public higher education.

Coming down the road, Tom said, is the likelihood that both Interstates 90 and 405 will become toll roads, following on the heels of the upcoming state Route 520 toll, and he’s concerned that Eastside residents will be paying for King County’s freeway upgrades.

“My dog in the fight is that we need to move forward, but it’s not equitable if all three are tolled,” he said, calling that a major cost to Eastside residents.

Another issue raised was a bill that would extend stadium taxes beyond the 2015 sunset clause to continue funding for the arts, including funding for 4Culture, and for workforce housing that supports the tourism industry here.

Eddy expressed no reservations about extending the tax, but both Hunter and Tom said they think it’s important to the public’s trust in their legislators to keep the sunset clause.

“There’s a huge disconnect and people don’t trust politicians” because of such actions, Tom said.

'No bill is dead'

Other hot-button issues include performance-based layoffs for teachers and a proposed Workers’ Compensation bill, ESB 5556, that would establish what’s referred to as a compromise-and-release program, giving people who receive long-term benefits the option of a cash-out settlement for their disability claims.

Employers have expressed frustration with long-term payouts, Tom said, and keeping people on disability for a long time limits their options to return to the workforce in other capacities.

“We don’t want to force people to lay on the couch for fear of being turned in by the neighbor if they’re seen outside mowing their lawns,” he said.

That bill was passed by the Senate and currently lies in the House, Tom said, but Eddy said that it is premature for her or Hunter to tell the public how they will vote on that, and she doesn’t think the contentious bill will come to a vote until the end of the session.

The legislators said it’s likely the session will last through April, and many tough decisions have yet to be made.

“Until we leave town, no bill is dead,” Tom said.