June 13, 2011
GREGOIRE'S LEGACY: UNSUSTAINABLE BUDGETS CEMENTED IN 2005

It was March 22, 2005.

Gregoire was the newly elected/selected Governor. And she submitted her budget. Here's what she said about it: "I don't like it," she said. "It's not sustainable. It's what's wrong with the budget in the state of Washington."

Members of her own Party ridiculed it: "Transferring funds and transferring them back to make it look like you did something - that is what is done here," said Senate Ways and Means Chairwoman Margarita Prentice, D-Renton.

Rep. Helen Sommers, D-Seattle, chairwoman of the House Appropriations Committee, likewise said no one should think the problem has been solved. "When you're using one-time money for long-term programs, it should be a sign to most people that you're in trouble."

A Seattle Times editorial said: Gregoire admits it is not sustainable. "I can't put out a sustainable budget today because I didn't inherit one."

Huh?

But what she and the Democrat-controlled Legislature did a month later really cemented our state on a path of unsustainable budgets.

As reported then: The Democrat-controlled Senate joined House colleagues yesterday in sending Gov. Christine Gregoire a bill that changes voter-approved spending limits and allows taxes to be increased by a simple majority vote in the Legislature. The measure changes the I-601 spending cap to say the state's budget can grow as fast as the 10-year average of growth in average personal income in the state, more generous than the original growth factor of population growth plus inflation.

Sen. Joseph Zarelli, R-Ridgefield, his party's lead budget negotiator, said, "It's a sad, sad day for Washington state taxpayers. "I fear we're heading back to the days of double-digit state-budget increases and consistent tax increases. We shouldn't be making it easier to raise taxes, we should be making it more difficult." He said voters want lawmakers to live within the state's means and stop turning to taxes. With the I-601 changes soon to be signed into law, "Those days [of restraint] are over, I guess. Now there is no reason, no motivation, for the government to spend wisely or efficiently."

But Prentice said legislators in both parties had amended the original initiative so many times it had lost meaning. "We feel the new limit will be more realistic. We believe we'll be in better shape financially in two years and we'll be able to live within our means," Prentice said.

Didn't happen.

If they could have restrained themselves and abided by I-601's limits from 2005-2011, there wouldn't have been the wrenching, disruptive roller-coaster of spending in Washington state during Gregoire's tenure as Governor.

Gregoire called her 2005 budget "a legacy budget." She was correct. Gregoire's legacy has been of unsustainable budgets cemented in 2005.

Posted by Tim Eyman at June 13, 2011 01:26 PM | Email This
Comments
1. There are plenty of problems in Olympia, but it's ridiculous to blame them on devoting a constant percentage of our citizens' earned income to things that government funds, provided the majority of our elected reporesentatives vote to do that.

Posted by: Bruce on June 13, 2011 01:51 PM
2. Yup, just keep that pedal to the floor 'til the engine blows, huh Bruce?

Posted by: Saltherring on June 13, 2011 02:01 PM
3. Saltherring, what about "constant percentage of income" will cause an engine to blow?

Posted by: Bruce on June 13, 2011 02:05 PM
4. Saltherring, what does blowing out an engine by running at it too many RPMs have to do with the state budget? Does keeping government programs at a constant percentage of income cause government to explode? When a business makes a lot of profit, does it explode? When an investor makes a lot of money, does he/she explode? When you're asked a lot of questions, do you explode?

Posted by: Bruce on June 13, 2011 02:18 PM
5. This State's Dimocrat governors and legislature have had the spending pedal to the floor for a decade. Only a leftist or a complete idiot could fail to understand the consequences.

Posted by: Saltherring on June 13, 2011 04:05 PM
6. If I hear the word budget cut one more time when the budget was bigger than last year well I just can't argue with idiots anymore.
The 2004 Election Thief only has herself to blame...after piggishly handling out large percentage increases every year on non-core non-government functions. Finally Dean Logan and Garth can talk.
Amazing to watch her ride her whites only sorority roots to an ez win the second time on the back of a Kenyan. But that Dino he still is the biggest racist we have ever seen. His campaign was clear major budget busts and she said the budget was fine.
How does a husband stand there and take her private words for real. At least no one expects a love child to emerge after she leaves office.
Hang on for the revenge killings to continue next year at the legislature.
This year it was middle class college bound kids executed at the door step of their future. The double the inflation rate tuition increases were not enough now it will be triple digits.
Next year commuters get frog marched to the "Paper's Please" office of "Good to Go" as only the Queen can now do. Per inch taxation with no expectation it will be spent on anything but "Mass Transit"! HAHAHAHA He ain't named Frank Chopp for nothing as the Queen yells "Off with their HEADS!!!!"

Posted by: Col. Hogan on June 13, 2011 04:53 PM
7. So Bruce are you saying that WA's debt, deficit and economy are currently in good shape? The percentage does not matter if the effect is spending far beyond our means.

And what do we get for all that extra spending? Is there anything so critical since 2005 that WA could not live without if we were to stay more within our means? We got the new Tacoma Narrows Bridge, but that is being financed by per use tolls. That was pretty critical for the Kitsap Peninsula and Tacoma congestion. We got a new lanes here and there that move bottlenecks to new locations. We have a very expensive new train to the airport that is not meeting ridership estimates. We got several new programs, some freeway art and relief for Brightwater's costs that spiraled out of control. I am sure there is more, but was there anything we really could not live without? Or a critical emergency fix like a new Alaskan Way Viaduct?

Posted by: Jeff B. on June 13, 2011 05:06 PM
8. I understand that the budget goes up automatically 10% every year and then if the folks in Olympia trim one or two percent from the budget they say they have "cut" the budget by that much. In reality the budget is still going up by 8% or so. A 10% cut would yield a budget the same as the last but that ain't about to happen.

It really gets down to how much people want their government to do for them. Prudent people want as little as possible. Generally naive people want more.

Posted by: G Jiggy on June 13, 2011 05:10 PM
9. Just like O-dumber.
SPEND, SPEND, SPEND.

Didn't work did it!

Posted by: Medic/Vet on June 13, 2011 05:24 PM
10. Bruce must enjoy being beaten with a rubber garden hose. Otherwise he'd learn to keep his inane thoughts to himself.

Posted by: Saltherring on June 13, 2011 05:44 PM
11.
"Gov. Gregoire has demonstrated relentless determination in her efforts to foster economic growth, strengthen the communities she serves and improve the lives of millions of Americans," Obama said.

Wow! Talk about two delusional people with a twisted definition of "economic growth". It's the spending, stupid...

Posted by: Rick D. on June 13, 2011 05:58 PM
12. Bruce, can you tell me who is going to pay all of the pensions in this country when the Stock market crashes, and the last jobs are exported overseas? 20+ % of Americans are now unemployed or under employed. Wages in the PRIVATE sector are falling like a rock.

Posted by: gs on June 13, 2011 06:38 PM
13. Hey Tim, if your goal is "Sustainable Budgets" then why do you campaign almost exclusively around the single issue of cutting tax revenue?

Posted by: Todd Boyle on June 13, 2011 09:22 PM
14. Angers me that they are so irresponsible, and then their solution is----raise the service B&O tax a whopping 20%! Yah, that'll fix everything...until this thing goes away in 2 years. And it WILL go away or heads will roll....We do not want to have to clean up THEIR messes again!

Posted by: Michele on June 13, 2011 11:34 PM
15. Sorta, kinda, might be considered off-topic BUT could very well be the unintended consequences of the topic...

First Gregoire, now Sims

Washington Gov. Gregoire not seeking re-election

Sims retiring, leaving Obama Administration

NEVER underestimate their proclivity for creating hopeless messes then running from them.

Posted by: RagnarDanneskold on June 14, 2011 09:50 AM
16. Does anyone remember her in 2004 promising that she wouldn't spend all the states cash and end up in trouble like other states have done? Her promises are worthless and now the rat is fleeing a sinking ship.

She almost finished running off Boeing and now our kids can't afford to attend the universities we subsidize so. She increased the size of the state government to non sustainable levels and gave as much as she could to the tribes. Her job is done.

I dare anyone to find one photo on the web showing Gregoire standing on her podium with her big GREGOIRE / OBAMA 08 sign hanging in front. She rode his coat tails to keep her spot and now both of them are failures and heading for the hills.

Posted by: Dave on June 14, 2011 11:17 AM
17. She isn't done, either.

What she wants you to believe is privatization of liquor is actually the securitization of the liquor tax revenue stream to New York investment bankers for a contractual 36% profit margin who then subcontract every bit of it out to shadow companies.

If she signs the bill, which sends about $1 BILLION to New York at our expense, you know all you need to know about her legacy.

Posted by: BillyTheKid on June 14, 2011 12:18 PM
18. Right now, McKenna looks like the candidate with the best chance of beating the Democrats for governor, but he is very weak on the what is the major issue of the day: cutting government spending.

I was hoping for a governor who would be a fiscal conservative, serious about cutting spending -- like Chris Christie of New Jersey, Mitch Daniels of Indiana, Gary Johnson of New Mexico, etc. I don't think McKenna fits this mold at all. He will probably give it some lip service, but if he was serious about it, it would have been the major thrust of his speeches and press releases so far.

I am also concerned about his support from the police and fire fighters unions. A crucial aspect in getting state spending under control is getting tougher with the unions, and I just don't see that in milquetoast, fiscally moderately Rob McKenna.

I liked that he joined other Attorney Generals in filing suit against portions of Obama's health care bill, but McKenna is a John McCain Republican, an old-school Bellevue moderate.

I, for one, am hoping for a fresh face, a *real* fiscal conservative, who is capable of bold moves to get government spending under control.


Posted by: bobk3333 on June 14, 2011 03:39 PM
19. @18 -What evidence do you have that McKenna is weak on cutting spending ?

Posted by: KDS on June 14, 2011 07:26 PM
20. KDS,

Prehaps it is due to all McKenna's talk of increasing spending on public schools?

Just more money down the NEA/WEA-dominated toilet, as far as I'm concerned. Lack of money is NOT the problem with public schools.

Posted by: Saltherring on June 15, 2011 06:16 AM
21. Todd Boyle @ #13: I have heard of some damned stupid excuses for higher taxes in my lifetime but yours just takes the cake.

I had all this stuff I was going to write about your comment but you are such an economic illiterate that it would simply be a waste of time.

Oy.

Posted by: G Jiggy on June 15, 2011 12:09 PM
22. I don't know if there is any real *proof* that McKenna is weak on cutting spending, but I think we can make reasonable inferences that he will not be nearly as strong as many other governors Christie, Daniel, Johnson, Walker.

In the two public positions he has held, he hasn't shown a propensity to cut. Spending increased dramatically while he was on the King County Council and he seemed happy enough to grow the Office of Attorney General to well over a thousand employees, doing who knows what? 80% of what the Office does is fluff -- just the kind of government spending he should be cutting.

If he was really serious about fiscal responsibility, it would have been the main thrust of his kickoff speeches, but it hasn't been. So far he has focused on *increasing* spending on education (instead of finding ways to more effectively spend our current education dollars) and banning gay marriages.

McKenna is a moderate Republican who will run a moderate campaign and if he becomes governor he would take only moderate measures to control spending.

No, it's not proof, but it's a reasonable inference based on his past and current actions. He has shown us nothing and said nothing to make us think otherwise.

.

Posted by: bobk3333 on June 16, 2011 02:24 AM
23. To me her legacy will always be "deficit what deficit" enough said!

Posted by: smutly on June 16, 2011 04:19 PM
24. And now I see Gregoire failed to veto the cutting of Sontags performance audits. So she does NOT believe in auditing her own government for it's own waste.

Why?

Because these audits brought to the forefront all of the massive waste.

She is currently touring Europe on a boondoggle tax payer paid trip. How nice!

Posted by: GS on June 19, 2011 04:56 AM
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