Gov. Gregoire proposes budget to protect state's values during tough times

For Immediate Release: December 18, 2008

Proposed 2009�11 budget closes budget shortfall without raising taxes

OLYMPIA � Gov. Chris Gregoire today proposed her 2009�11 state budget, closing a projected $5.7 billion shortfall through a combination of program reductions, suspension of state employee, teacher and care worker salary increases, pension changes, increased federal contributions and the use of the state�s rainy day fund.

�The deepening national recession is already the longest in a quarter century and has resulted in dramatic budget gaps in states across the nation,� Gregoire said. �Our state is not immune and our revenue � largely reliant on a sales tax � is down significantly, resulting in the largest budget gap in state history.�

The governor�s proposed budget will close the projected shortfall without raising taxes.

�Now is not the time to be raising taxes on our residents and businesses,� Gregoire said. �Our families are tightening their belts, and that�s what government needs to do. The state must squeeze every ounce of value from each taxpayer dollar while maintaining our priorities of protecting families and children the best we can.�

Each part of the state budget will be reduced in the proposed budget. Education and public safety took the smallest cuts, followed by health care, human services and natural resources.

�As we face this crisis, the most important thing we must do is protect our children,� the governor said. �Even as we make cuts in other areas, we must make sure our children are safe in their homes, have high-quality health care, and are provided with an education that will equip them with the skills and opportunity they need to succeed in the economy we are building for tomorrow.�

�Hardworking teachers, state employees and care workers provide immeasurably valuable services to the people of our state,� Gregoire said. �They are well deserving of adjustments to maintain the value of their salaries. Unfortunately, we had no choice but to put their raises on hold. Forgoing the raises allowed us to protect early learning, keep smaller classes in our K-12 schools and protect teachers� jobs, as well as avoid even deeper cuts to services for our most vulnerable and health care for children and families.�

Gregoire�s proposed budget leaves a $507 million ending balance, which includes $100 million in the rainy day fund.

As the economic downturn took hold in Washington late last year, the governor took steps to save money, including a freeze on hiring, equipment purchases, out-of-state travel and personal service contracts; across-the-board reductions in state agencies and higher education institutions; and other program savings.