Partisan divide was clearly on display as AWB's annual Legislative Day began this morning in Olympia. Members of the first panel, Tax & Fiscal Policy, agreed that lawmakers in Olympia will produce a balanced budget that does not include new taxes.
But once they have done that, the talk will turn to taxes. And the disagreements will begin in earnest.
Sen. Joe Zarelli, R-Ridgefield, one of four panelists, began by noting that the recession isn't the only reason the state finds itself in a budget hole. Years of overspending also contributed to the problem, he said.
He also reminded the audience that despite the dire straits the state budget is in, there is actually more money than there was in the last biennium.
"It's very important that we balance the budget, as difficult as it may seem to some, within available revenue," Zarelli said.
Rep. Gary Alexander, R-Olympia, agreed. He followed up by criticizing his fellow lawmakers for failing to deal with more of the budget shortfall during last year's special session.
He noted that he has developed a plan to balance the state budget without raising taxes and he called on lawmakers to re-prioritize state government.
But Sen. Ed Murray, D-Seattle, said that while he agrees lawmakers should adopt a sustainable budget and look for ways to make government more efficient, "that by itself will not manage this budget crisis."
Talk about new revenue will need to be part of the discussion, he said.
Murray also disagreed with Alexander over the amount of work that could have been accomplished during the special session, and he said it doesn't work any more to re-hash what could have been done. That might have worked in 2007, but the world changed in 2008, he said.
Rep. Ross Hunter, D-Medina, said lawmakers will produce a budget that cuts $1.5 billion without raising taxes, but then discussion will turn to revenue.
Revenue as a percentage of GDP is declining, Hunter said, and state and local taxes as a percentage of income are at the lowest level in 50 years.
A question about Gov. Chris Gregoire's proposed tax simplification bill also revealed some partisan divide. The two Democrats on the panel predicted that the bill, which is drawing opposition from the state's largest cities, will not survive the session. It's too complicated for a short session, Murray and Hunter said.
Zarelli agreed the issue is complicated, but said there is no reason to give up on this year. And if it doesn't pass this year, he wants lawmakers to pick up on it next year and adopt reforms to streamline tax collection to help business.
