KIRO NEWSRADIO: SEATTLE NEWS & ANALYSIS

Gov. Gregoire asks voters for a sales tax increase

Nov 21, 2011, 9:18 AM | Updated: Oct 14, 2024, 4:51 pm

...

cedargrove
Gov. Gregoire proposed a sales tax increase to help gap a projected $1.4 billion deficit. (AP Photo)

Gov. Chris Gregoire proposed $1.7 billion in cuts to state government Monday but said she wants voters to approve a temporary sales tax increase to prevent some of the more severe reductions, including a shortened school year.

Gregoire’s plan to address a projected deficit of $1.4 billion also includes reductions in university support and the elimination of medical programs for 55,000 low-income residents.

The Democrat, entering her final year in office, suggested up to $835 million in revenue to buy back some of the cuts. She said the priority is a voter-approved temporary half-cent tax increase that would bring in $494 million through 2013. That tax increase would expire in 2015. Gregoire said that under the bill she will present to the Legislature, she wants a special election to vote on the tax to take place in March.

The majority of the money raised by the sales tax would go to education to put back into higher education and ensuring the school year isn’t shortened. It would also restore money to public safety.

“We’re cutting off our future when we cut education. We need to be investing in education. So that’s why I’m asking the voters to stand with me. Stand with me for a half penny and make sure we’re investing in education, our most vulnerable, and public safety,” Gregoire told 97.3 KIRO FM’s Ross and Burbank.

She doesn’t think she could get 2/3 vote in the Legislature, so Gregoire is letting the voters decide on the sales tax. But will they approve?

“I think I’ve been as open and honest and transparent with them. I believe when voters are told if you spend a half penny, this is what you’re investing in, this is what you’re going to get, I think they’re willing to step up. That’s why I’ve made it very clear, with a half penny this is what we buy.”

Listen to Gov. Chris Gregoire presents her budget proposal

Why not just cut departments and useless programs?

“In my budget that I put forward today, I eliminate another 30 programs. We’ve already eliminated, my best estimate, is probably 50 programs,” Gregoire said.

“We have made state government leaner. We have made it more efficient. We’ve done more reforms than in two decades. We’ve done all that. There’s more to do, so phase three for me is to start looking at additional reforms that I will recommend to the Legislature over the next couple of weeks.”

She planned to start touring the state Tuesday to discuss her proposals, with stops in Vancouver, Yakima, Spokane and Seattle.

In a joint statement issued after the governor’s proposal, Senate Majority Leader Lisa Brown and Sen. Ed Murray praised the governor for “exploring every viable option, including additional revenue.”

“The governor’s proposed budget reflects how few options remain open to the state,” wrote Brown, D-Spokane, and Murray, D-Seattle and chairman of the budget-writing Senate Ways & Means Committee.

Senate Minority Leader Mike Hewitt, R-Walla Walla, said a tax increase was not the answer.

“To talk about raising taxes at a time when people are out of work and can’t afford it suggests an insensitivity to what the citizens of this state are going through,” he said in a news release.

The education cuts account for roughly one-quarter of Gregoire’s reductions plan. She proposes shortening the school year by four days, saving $99 million, and reducing support for poor school districts by $150 million.

The state would reduce support for higher education by $160 million _ a 17 percent reduction for the top universities. Past cuts have already driven up tuition to the point that it is expected to double during Gregoire’s eight-year tenure in office.

Another $340 million would be saved by delaying a large payment to school districts until the next two-year budget cycle.

In addition to the sales tax increase, Gregoire’s other revenue recommendations to the Legislature would bring in an additional $341 million, including $59 million in administrative savings that could pass with a simple majority. However, $282 million of her recommendations would require two-thirds support from the Legislature or would have to go to a public vote.

Those recommendations include a business and occupation tax on oil companies and financial institutions with windfall profits. Gregoire also wants to repeal the sales tax exemption for residents who live in states without a sales tax, like Oregon.

Other major reduction proposals include:

_ Eliminating the Disability Lifeline program and the Basic Health Plan, saving about $130 million. Those programs provide medical services to 55,000 people.

_ Allowing low- and moderate-risk offenders to be released 150 days early from their prison term and reducing supervision for offenders to one year except sex offenders who will be supervised for two years. Offenders are currently supervised for up to three years. The changes would save $41 million.

_ Reducing state funding for subsidized child care by $50 million, ending aid for about 4,000 families who get subsidized care while parents work.

State lawmakers return to the Capitol on Nov. 28 for a special legislative session to consider Gregoire’s proposal and to address the state’s projected deficit ahead of the regular legislative session that begins in January.

The Associated Press contributed to this report.

KIRO Newsradio: Seattle News & Analysis

Photo: Gee Scott roasted Velveeta cheese ahead of Super Bowl Sunday....

Frank Lenzi

‘Your food is unseasoned’: Gee Scott roasts Velveeta lovers ahead of Super Bowl Sunday

If you’re looking for a Super Bowl Party where the hosts are serving Velveeta, you won’t find it at Gee Scott's house.

17 hours ago

Photo: Seattle Children's Hospital is one hospital impacted by Trump's executive order blocking fed...

Julia Dallas

‘It’s disgusting’: WA Attorney General’s Office sparks legal battle against Trump order on gender-affirming care

The AG's Office announced it is filing a lawsuit to stop an executive order from the Trump administration that halts federal funding for gender-affirming care.

22 hours ago

Photo: Sweden's Martin Haarahiltunen in red is riding inside Finland's Max Koivula and Austria's Fr...

Paul Holden

Weekend festivities: Undie run, pinball, ice racing and more!

Maybe you've been stuck inside this week enjoying the snow and are ready to get out and enjoy the weekend, well you are in luck!

2 days ago

Photo: Seattle Sounders FC fans cheers for his team at the stadium during the match between Toronto...

Matt Markovich

A fart tax? State lawmaker suggests sports fans pay up for methane emissions

A Republican lawmaker made an unusual suggestion during a public hearing Thursday on a bill that could lead to a fart tax on cows.

2 days ago

Photo: A cell in the King County Jail can be seen in a recent photo....

Matt Markovich

Justice vs. safety: Washington lawmakers clash over sentencing reform bill

A bill advanced in Olympia that may lead to a floor vote on one of the most significant law and justice bills of this session. It involves sentencing reform.

2 days ago

Photo: Housing in Seattle, Washington....

Matt Markovich

Washington bill takes aim at corporate homebuyers, tries to level playing field for families

In a move to preserve homeownership opportunities and combat escalating housing prices, a new bill — Senate Bill 5496 — has been introduced in Washington.

3 days ago

Gov. Gregoire asks voters for a sales tax increase