In January I arrived in Olympia for our 2010 session. It didn’t take long to see that what we already knew was a daunting task — balancing our $2.8 billion budget shortfall — would take more than 60 days. It was important for us to take the time to be thoughtful and weigh all of the options before making these difficult decisions.
Last night however, after a 60-day regular session and 29 days in Special Session, we were able to pass a balanced budget, including a thoughtful approach in solving the shortfall, and leave Olympia without the devastating impact of an all cuts budget. This is not to say however, that this budget does not cut further some very important programs. We are also facing an additional shortfall next year, so our work is not done. I will begin working immediately, developing ideas for tackling next year’s projected deficit.
As I’ve written to you before, it has been evident that we could not solve the shortfall with another all-cuts budget. The cuts would have been too wide and too deep – impacting the programs that are most important to our communities. If we want to keep Washington a leader in providing a world class education, attracting globally competitive businesses and maintaining our way of life, we have to make the tough choices and invest the resources we need to ensure Washington’s future remains bright.
The budget process is a difficult one. Every day this session I heard from people from across Washington, including many of you from here in the 40th district. Your input is what guides my decisions in Olympia. Please continue to stay in touch throughout the interim as we work toward the 2011 session.
In this update I want to let you know about the legislation I worked on for the 40th district, our budget cuts and why we needed to find new revenue, how we’re creating jobs, and a breakdown of the budget shortfall.
I also want to let you know that this year I’ll be opening an office in Bellingham along with our existing office in Anacortes. As always, feel free to contact my office at anytime if you need any assistance with state government.
The Budget
The budget that we passed Monday is a balanced solution to the fiscal imbalance that we were dealt by the global financial crisis. After state revenues plummeted last year and we faced a $9 billion budget shortfall, in 2009 we passed an all-cuts budget. This year, facing an additional $2.8 billion shortfall, I supported the balanced approach to getting our state back on solid financial ground.
The budget relies on more than $750 million in program cuts and $690 million in fund transfers. Continued support from the federal government covered $618 million, mostly in health care dollars that would not have been possible without the Health Care Reform act passed last month by Congress.
The final piece of the budget comes in the form of just under $800 million in new revenue sources. A combination of closing tax loopholes, extending the sales tax to things like bottled water, and adjusting B&O tax rates, this revenue makes up a small portion of our total two-year budget solution.
This is a balanced budget. We can’t solve our problems by cuts or taxes alone. This solution represents a combination of new revenues, additional cuts and the closing of tax loopholes that prioritizes the protection of our community’s most important programs. With all the cuts we did make however, this year is the first time since 1951 that a Washington state biennial budget was smaller than the previous budget.
One of the most important items in the budget is some relief for small businesses, which played a big part in my decision to vote for the budget. We passed a permanent increase to the small business B&O tax credit. With this tax credit, a small business that earns less than $46,722 annually will now pay zero B&O tax.
Further, a business that earns less than $80,333 will see a decrease in rates. Protecting our most critical services and preventing dramatic cuts to education required us to look beyond the all cuts budget. We made sure that the taxes raised to protect our critical services also protected small businesses.
These credits are not temporary – they represent a permanent break for small businesses and a key step toward supporting local economies as we move towards economic recovery. These are important steps in the right direction to keep small businesses growing across Washington.
The budget process is a long and difficult one, but I think we were able to balance the needs of Washingtonians with the economic realities facing our state. One of the critical things we invested in was the health of Puget Sound. Through the state’s capital investment budget, we were able to include $50 million for storm water cleanup – a crucial component in restoring Puget Sound.
Why do we need the revenue package?
It’s during times of a recession when we most need our public systems to provide support and protection to those hardest hit and pave the way for a robust recovery. Demand for public services like public schools, health care, emergency assistance, job training and state financial aid increase just when our ability to pay for them decreases.
By passing this fair and responsible revenue package, we will have a 2010 supplemental budget that:
* makes no cuts to basic education and preserves 54,658 teachers;
* preserves critical preschool programs for children under three;
* protects Working Connections childcare for 37,000 families,
* fully funds all-day kindergarten;
* maintains the Apple Health for Kids program serving 486,000 children;
* preserves levy equalization funding for rural school districts;
* secures state financial aid for 57,000 young adults;
* provides retraining in high-demand fields for an additional 3,800 workers;
* provides community mental health services to an average of around 55,000 people per month; and
* saves health care for 69,000 people on the Basic Health Plan.
These are exactly the kind of services essential for the safety, health and security of Washingtonians that it is state government’s job to protect.
And these are exactly the kind of services essential to ensure a strong economic future.
Washington Jobs Act
This year we passed this year is the Washington Jobs Act, which will be one of the largest job creation and infrastructure investment bills passed in some time. When I first discussed this bill with the Prime Sponsor in the house last July, I realized that this was something I needed to work hard for in the Senate, and I did. I was proud to vote for its final passage – sending it to you for approval on the ballot this November – last night on the Senate floor.
The jobs act will include $505 million in bonds to finance energy efficiency improvements to public schools and buildings on public college and university campuses. This will create 30,000 jobs and save school districts $126 million annually in operating costs. Updating our schools and public buildings will give them new life and extend their usability.
Working for the 40th District
This year I was able to work with my colleagues in the Senate and in the House, and with many of you, to pass a number of bills that will directly benefit the 40th District.
* SB 6350 will implement Marine Spatial Planning, limiting user conflicts between the increasing number of existing and new uses proposed in our state’s marine waters.
* SB 6557 requires brake pads be made of substances less harmful to the environment, excluding heavy metals like copper. This bill is already recognized as a national model for coastal states throughout the country.
* SB 6634 increases accountability for the state’s dairy nutrient program by establishing fines for noncompliance.
* SB 6346 allows residents of San Juan County to operate neighborhood electronic vehicles and medium-speed electronic vehicles on city streets and county roads that are not state routes, provided the speed limit is 45 mph or less.
* SB 6349 will allow farms with gross sales of less than $250,000 annually to establish internship programs for future farmers who are not enrolled in classes to work on farms throughout the state.
* SB 6373 directs the Department of Ecology to adopt rules requiring people to report emissions of greenhouse gases where those emissions from a single facility, source or site, or from fossil fuels sold in Washington by single supplier, meet or exceed 10,000 metric tons of carbon dioxide annually.
* SB 6248 bans BPA, a harmful chemical, in baby bottles, sippy cups and similar containers beginning in July 2011, and plastic sports bottles in July 2012.
For more information on these or any bill, visit here
