News Releases
Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - December 17, 2002
Contact:  Roger Nyhus, Governor’s Communications Office, 360-902-4136
Alt Contact:  Ed Penhale, Office of Financial Management, 360-902-0619

Gov. Gary Locke Closes $2 Billion Budget Deficit; Proposes Innovative, Priority-Driven State Budget

Gov. Gary Locke today proposed a priority-driven state budget that uses existing tax revenue to pay for services that matter most to Washington citizens – education, economic recovery, public safety and basic support for the state’s most vulnerable children and adults.

The two-year, $23 billion General Fund budget is the product of an innovative budget approach Locke implemented called “Priorities of Government,” which scrutinized state spending practices and resulted in a government-wide effort to identify citizens’ highest priorities.

The budget proposal to the Legislature meets the challenge of a deficit of more than $2 billion in the 2003-05 biennium, the result of recession, slow economic recovery and soaring health care costs.

No general tax increase is proposed, and spending is cut by $2.4 billion. The reductions include $2.1 billion in the state operating budget and $275 million in the Health Services Account, which funds state medical programs.

“This budget takes a close look at everything our state government does, prioritizes spending and funds the programs that get the results people want from their state government,” Locke said.

“The budget I’ve proposed shows the citizens of this state what their tax money can buy, and it shows what we cannot afford in this difficult economy,” the governor said.

Equally important, “We laid the foundation for a smarter, more visionary government that will be better able to deliver the most important services now and in the future. We laid the foundation for more trust in government because people can better see exactly what programs and services we are buying and not buying,” he said.

Locke said the proposal addresses today’s economic realities. It requires changes to three voter-approved initiatives and reduces or eliminates funding for a host of services ranging from subsidized health insurance for thousands of adults to social service programs, parks and recreation, and general government services.

Under the proposal, state workers and people or businesses under contract to provide services to the state receive no cost-of-living raises, saving $351 million; and state-funded employees, including teachers and college and university employees, pay a larger share of their health-insurance costs. The proposal continues to shrink the state workforce, reducing full-time positions by 2,500 by fiscal year 2005, for a savings of $100 million in salaries and benefits. With the exception of the higher education and public safety workforce, this reduction brings total state employment to the same level it was when Locke first became governor.

Locke’s results-oriented budget approach has won praise from newspaper editorials, public policy experts and Democratic and Republican legislators. The governor said he welcomed debate over the goals and priorities reflected in his proposal. But he said new ideas must be supported by clear evidence that they truly will help the state provide essential services and move closer to goals that are most critical to taxpayers.

Education, which accounts for 56 percent of the General Fund budget, remains the governor’s highest priority, but education funding also is reduced in the wake of declining revenue projections. Locke’s proposal:

· Provides $10.6 billion – nearly half of total General Fund spending – for basic education services for 1 million public-school students. It maintains reduced class sizes and increases funding to improve academic achievement and get low-performing schools on track.

· Saves $545 million by canceling cost-of-living adjustments for teachers and a scheduled class-size reduction in the 2004-05 school year, and by making program reductions affecting levy equalization funding and block grants for schools.

· Provides $2.7 billion to fund the education of more than 215,000 students at the state’s colleges and universities, including 1,550 new enrollment slots in high-demand fields such as engineering, computer science and health care.

· Cuts higher education costs by $109 million and grants state colleges and universities additional tuition-setting authority. Anticipated tuition increases to cover state funding reductions are capped at 9 percent a year.

Locke’s proposal takes steps to rejuvenate Washington’s economy and create jobs. His proposal will:

· Fund a $2.5 billion state construction budget, which supports an annual average of 13,400 private sector construction and related jobs, to provide infrastructure needed to spur business growth and new classroom space at state colleges and universities.

· Provide $108 million to nurture economic development through strategies that create new jobs, assist emerging new industries such as biotechnology and clean energy, assist local economic development efforts, operate the Washington Trade and Convention Center and market Washington products to the world.

· Provide $87 million to state colleges and universities for increased enrollment in high-demand fields and for workforce training programs that give workers the skills they need to get a good job.

Despite large, continuing increases in health care costs, the governor’s budget continues to fund all existing health care programs for children. Rapidly rising costs mean the number of adults served by the Basic Health Plan is reduced and some optional adult-care programs are eliminated. Meanwhile, funding for community health clinics is increased. This budget:
· Provides $3.7 billion in state funds for health care for more than 908,000 vulnerable children and adults, and a stronger public health system.

· Provides Basic Health Plan insurance coverage for nearly 81,000 low-income people and increased funding for community health clinics.

· Saves $328 million by ending Basic Health Plan coverage for 59,800 childless adults and optional medical care programs for adult Medicaid patients.

Basic life needs of the most vulnerable children and adults are met to ensure they are fed, sheltered and safe from abuse and neglect. The proposal:

· Provides $3.8 billion in state funding for Child and Adult Protective Services, emergency food and housing, mental health care, institutions, nursing homes, foster care, temporary assistance to needy families, employment training for disabled adults and child support services.

· Saves $215 million by ending human-services activities deemed less necessary to meet the most immediate health and safety needs.

The governor’s public safety budget keeps Washington well prepared to respond to emergencies and continues services that keep citizens safe in their homes. His proposal:

· Provides $1.4 billion to pay for the state prison system, supervision of prisoners after their release, supervision and treatment of sex offenders, confinement and treatment of chronic juvenile offenders, the state Crime Lab, aid to crime victims, help for at-risk youth, emergency preparedness for natural disasters and terrorism, and the State Patrol.

· Saves nearly $100 million by reducing the number of low-risk, non-violent offenders in prison by 1,200, and by eliminating state supervision of 2,900 low-risk, non-violent offenders who have completed prison time and 22,000 low-risk, non-violent offenders who have completed jail sentences. These reductions are accomplished by accelerating implementation of a new sentencing grid already approved by the Legislature and by increasing the amount of “good time” an offender can earn in prison.

The proposal provides the funding necessary to protect the state’s clean air and water, and its forests, farmlands, fish and parks, but reduces spending by $25 million by consolidating and streamlining environmental-protection activities.

The governor is actively working with key transportation stakeholders and legislators to determine the best way to pay for transportation improvements necessary to address congestion and keep the state’s economy moving forward. In the meantime, his $3 billion current-law transportation budget will:

· Preserve and protect existing transportation investments.

· Finish transportation projects currently under way.

· Target scarce remaining transportation dollars to speed up traffic flow on dangerous highways.

The governor’s budget plan for the next biennium leaves $271 million in reserve accounts.


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