Washington's budget picture

This week, Gov. Chris Gregoire signed the 2008 supplemental budget into law. Senate Democrats are proud of our forward-thinking budget, and believe strongly that it positions our state well for the future.

That’s why we’re taking this opportunity to put our budget picture into a larger context.

Our budget picture compares favorably with other states

• Twenty two states faces budget shortfalls going into 2009, combining for nearly $40 billion in insufficient revenues, according to the Center on Budget Policy and Priorities. Washington, with $850 million in reserves going into 2009, is not among them.

click on map for more detail

• Taxpayers in Washington pay a smaller share of their income in state and local taxes than their counterparts in 36 other states, according to the Washington State Budget and Policy Center.

Our budget picture compares favorably with state history

• The 2007-09 Washington operating budget has been stable in terms of share of state personal income since 1995-97.
   

• The 2008 supplemental budget leaves over twice the average annual amount in reserves, and the second highest supplemental reserve in state history.

Our budgets have turned the state around

• When the House, Senate and the Governor started the three-corners budgeting process in 2005, we faced a $2.2 billion deficit. The projection for ensuing years was $5 billion (click here).
   
• We’ve turned that into a healthy reserve, while responding the state’s needs and supporting the priorities of the people of Washington.
   
• In the prior budget, health care services were slashed, education investments got tabled, unfunded pension liabilities went ignored.
   
• We’ve made considerable investments since then, with the bulk of new spending since 2005 going to K-12 and higher education (51 percent) and health care (17 percent). We’ve also made significant investments in natural resources, economic development, and housing (23 percent) and public safety (9 percent).
   
• These investments include:
  • Fully funding Initiative 728 and Initiative 732 for smaller classrooms and better teacher pay
  • Math and science teacher development
  • High school dropout prevention
  • Better school district transportation funding
  • 2,250 more Early Childhood Education and Assistance slots
  • Creating a Department of Early Learning
  • Significant enhancements to the special education safety net
  • 8,500 additional higher education slots
  • Expanding existing state financial aid programs for more students to afford college
  • Creating the new Opportunity Grant program and the College Bound scholarship program for students from low-income families
  • Funding life sciences research
  • Funding biofuels research
  • Strengthening our mental health treatment system
  • Covering all kids with health insurance by 2010
  • More dental care for adults and children
  • More childhood immunizations
  • 6,500 additional Basic Health Plan enrollments
  • Rate increases for nursing homes, family child care homes and child care centers
  • Medicare Part D prescription drug co-pays for 100,000 seniors
  • Low income housing
  • Department of Corrections new computer system
  • Improved juvenile rehabilitation services
  • Reduced offender recidivism

Our budget picture is manageable

• Unlike Washington D.C., Washington state cannot carry a deficit. We must, and do, balance our budget every time. At the end of the 2007-09 biennium, we currently show a $850 million ending fund balance.
   
• The state revenue forecast is adjusted four times yearly. Lawmakers adjust the state budget every year. Whenever a shortfall is shown in the present two-year cycle, budget writers return to the table and scrub the budget to put it back in balance.
   
• Short of an economic downturn similar to what we saw after Sept. 11, our state is unlikely to reach any ominous shortfall in the next biennium, because we’ll make the necessary adjustments in the coming year to prevent that hole from materializing.