Today the Washington Research Council released its analysis of Gov. Chris Gregoire's supplemental budget. Here are some highlights from the WRC report.
The Governor’s proposed supplemental budget would increase NGFS spending for 2007-09 by $234 million to $33,596 million ($33.6 billion). GFS spending would increase by $144 million to $29,767 million. Spending from the related accounts would increase by $90 million to $3,829 million. By historical standards, these are small supplemental increases. But, coming on the heels of the large increases enacted in 2007, the proposed spending will
not be sustainable in 2009–11. ...Last April...we complained that ... spending plans left too little in reserve against a
downturn in the economy and made commitments that are unsustainable in the long
run. The upward revisions to the revenue forecast in June and September have given
the state a bit bigger cushion against a downturn. But since April, economic uncertainty
has increased. ...
The next revenue forecast comes out next month. With the nation economy continuing to soften, another downward revision in forecast revenues may be in the offing.
AP political writer David Ammons notes this year's budget politics.
Democratic budget leaders said there will be heavy spending pressures, including demands from their closest allies and campaign supporters, but said they'll try to follow Gregoire's lead and write a tidy "tuneup" budget without starting major new programs.
Why?
They have a twofold motivation: Gregoire's re-election and the Democrats' supermajorities are on the line this fall. Secondly, the economy is slowing and a $620 million deficit is projected in a few years.
Republicans have a different view.
"The horse is out of the barn," since Democrats have boosted the budget by 33 percent over the past four years, said Sen. Cheryl Pflug, R-Maple Valley.
Given the recent budget increases, a big boost this year would be like irrigating a flooded field. It's just not necessary.
