OLYMPIA, Wash. -- Gov. Chris Gregoire unveiled a two-year budget plan Wednesday that uses a mix of cuts to state programs, suspension of voter initiatives and use of the state’s “rainy day” fund to patch a projected $4.6 billion deficit.
In her proposal unveiled Wednesday, Gregoire makes about $3 billion in cuts in her 2011-2013 budget to programs across state government. Another $1.1 billion is saved by not paying for two voter-backed education initiatives that deal with teacher pay raises and money for reducing class sizes.
She proposes eliminating the Basic Health Program, which provides subsidized medical insurance to poorer Washingtonians, and she would eliminate cash grants and medical care for the Disability Lifeline program, which aids mostly childless adults who are unemployable but not receiving federal aid. The proposal also would eliminate the Children’s Health Program, which provides medical coverage for 27,000 children who may be in the country illegally.
The biggest reductions are seen in K-12 education, through both the suspension of teacher pay and class size Initiatives 728 and 732, as well as a 10 percent reduction to a state scholarship and student outreach program. Combined, they save the state $2.2 billion over the next two years.
Also missing is $600 million that would have gone into additional spending on public education, the first phase of a multiyear plan that was dictated under a bill passed during the legislative session earlier this year.
Gregoire also suggests a 6.2 percent reduction in levy equalization payments, which help K-12 school districts that have lower levels of property-tax support.
Higher education would see across-the-board budget cuts of 4.2 percent at both four-year schools and community and technical colleges, saving the state $102 million. The cuts could result in fewer classes being offered, larger class sizes and fewer faculty positions.
Gregoire also proposed allowing colleges and universities to raise tuition for resident undergraduates at set amounts. For example, a student at a community college would see an increase of $280 in fiscal year 2012, followed by a $305 increase in fiscal year 2013. A student at the University of Washington would see their tuition increase by $940 in 2012, and by $1,050 in 2013. Gregoire also proposed a bump in financial aid to help offset costs for students.
In a written statement presented with the budget, Gregoire said her proposal “is not a budget I ever expected to see in the state of Washington, and the choices in it are the most difficult ones I’ve ever faced.
“The reality of this recession is that it has dismantled many of the programs that I, and millions of others in the state, value,” she wrote. “In any other time I would not sign this budget.”
Gregoire would tap about $290 million from the state’s Rainy Day Fund, created by voters for budget emergencies, and transfer about $400 million in funds from other accounts to the state’s operating budget.
Earlier in the week, she announced pieces of her budget plan, including the consolidation of several state agencies, the elimination of three dozen boards and commissions, and changes to the state pension system. State workers will also see a 3 percent cut in pay through unpaid time known as furloughs.
Her plan would leave the state’s operating budget with a balance of about $881 million.
Lawmakers start their 105-day legislative session in January, and Democratic leaders in both the House and Senate will present their own proposals then.
Tax increases are not a likely option following the November election, where voters rejected several new taxes and place renewed restrictions on the Legislature’s ability to raise taxes without a statewide vote.
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