One of the more interesting debates happening in Olympia right now is how to pay for the paid family leave entitlement put into law last year. Count me as one of the naive individuals who thought the legislature was supposed to figure out the details of a program before adopting it.
Apparently last year's faith based punt on the family leave entitlement hasn't put a damper on some lawmakers' desire to adopt new programs without figuring out the details first. Consider the following statement from Senate Majority Leader Lisa Brown concerning the proposal to adopt a sales tax rebate for the state's low income.
According to The Olympian: “Senate Majority Leader Lisa Brown, D-Spokane, said it might be necessary to create the program this year but determine the amount of assistance next year when the state's budget outlook is clearer.”
The Yakima Herald is encouraging lawmakers to take a deep breath and not move forward with this type of faith based budgeting:
"The Seattle Times reported Friday that Democratic leaders in Olympia are pushing Senate Bill 6809, which starting next year would provide a sales-tax break for low-income families of as much as $470.
About 350,000 households in the state would be eligible for the proposed rebate, which calls for the state to provide a 10 percent match to people who qualify for the federal Earned Income Tax Credit . . . Projected hit on the state treasury: About $120 million every two years.
But that's not all. Even if it's approved, Washington residents would not be able to apply for the credit until next year because the state Department of Revenue hasn't even had time to determine just how much it would cost to administer the plan. It's expected to take several months for the state to set up a system to handle the paperwork involved.
The unknown costs of such an ongoing program are reason enough to shelve it.
Have state lawmakers already forgotten that an expected $1.4 billion surplus at the end of the current budget cycle is expected to turn into a deficit of as much as $600 million by the end of the 2009-2011 budget period . . . We said before the session began that this is not a good time for state lawmakers to embark on costly new programs -- including this election-year grandstanding.
If majority-party Democrats insist on railroading this ill-advised legislation through this session, then we would call upon Gregoire to heed her own advice about "save the surplus" and veto it to show that she meant what she said."
Meanwhile, The Seattle PI warns today that "Reality will bite state budget."
"Gov. Chris Gregoire and leading Democrats in the House and Senate have reached one early agreement in this year's budget negotiations: It's time for a reality check.
Anticipating a bleak revenue forecast, they've agreed to start looking for places to trim the $33 billion budget they passed last year. They say they want to have their priorities in order in case the slowing economy forces them to find efficiencies or even cut programs altogether.
"We're not taking for granted that everything that was budgeted last year is going to go forward this year," said Senate Majority Leader Lisa Brown, D-Spokane.
Neither she nor any other Democratic leaders provided specific examples of what might have to be cut.
Gone are the halcyon days of a skyrocketing real estate market and a ballooning economy that had led to back-to-back-to-back upward adjustments in the state's revenue forecasts.
And gone is the free and easy feeling about spending, the unflinching commitment to "targeted investments" that Democrats have enjoyed for the past three years.
The upcoming revenue forecast comes out on Valentine's Day, but given the circumstances no one is expecting a very rosy message from the state's top economist, ChangMook Sohn."