Gregoire says new governor will have to raise taxes

Just weeks before the state election, the two candidates for governor continue to insist they won’t raise taxes to balance the budget. But exiting Governor Chris Gregoire says they need to get real.

Gregoire is still working on her last two-year budget and told reporters the state needs more revenue to pay the bills.

“Nothing’s free. You cannot get there on a bank card, on a credit card. You just can’t get there guys,” she said.

The governor says while Rob McKenna and Jay Inslee are candidates and their no tax increase promises are campaign rhetoric, she has to be a “realist.”

The state faces an ongoing budget deficit and a mandate from the State Supreme Court to increase spending by at least $1 billion for basic education.

Gregoire said state government already has gone through plenty of cuts, noting staffing reductions in particular. She hasn’t proposed any specific taxes but expects to include revenue options in a forthcoming budget proposal – a budget that ultimately will be finalized by the next governor and Legislature.

“We just have to be honest with the public,” Gregoire said.

The Associated Press contributed to this report