The state Senate just adopted the budget plan proposed earlier this week on a largely party-line vote (Sen. Tim Sheldon, D-Potlatch, voted no.) Supporters of the package talked about $750 million reserves, largely ignoring projections of a multi-billion shortfall in the next biennium.
The Everett Herald raised the right issues in this editorial.
Lower state revenue projections and higher costs in unavoidable areas have combined to erase more than $500 million from state coffers. The next budget, if all things stay the same, shows a projected shortfall of $2.4 billion. Like any employer, this is a time for the state to be more frugal, not to go back to "correct" past budget cuts.
... It would be wise in coming negotiations for Gregoire to hold out for $1 billion [in reserves], which would mean fewer painful cuts next year. Big new spending proposals, like one that would give child-care center owners and workers collective bargaining rights, potentially costing the state hundreds of millions of dollars, should be avoided.
Good idea. We'll see in the next few weeks.
