House Republican budget unveiling: No revenue, no “gimmicks”

The House Republicans are unveiling their version of the supplemental operating budget now. The $1.6 budget patch includes $63 million in fund transfers, $160 million in reversions — taking un-spent money back from agencies — $336 million from reduced caseloads, and $840 million from reductions.

It also repeals three tax exemptions for a total of $35.6 million, including the first mortgage interest deduction for large banks, the renewable energy tax refund and a B&O tax exemption for out-of-state companies that Alexander said are competing against in-state companies unfairly.

“Of course, we had good news recently — the February revenue forecast,” said Rep. Gary Alexander. “I can tell you for the most part that money has gone down to the bottom line,” he said.

Behind Alexander and the others on the panel are a series of large charts. One reads that the budget funds priorities “With no sales tax increases … No bonding … No securitization … No gimmicks.”

This budget includes the House Republicans’ “fund education first” budget released earlier this session, Alexander said.

On public safety, Alexander noted that this budget does not rely on releasing inmates early or reducing supervision.

As for the most vulnerable, this budget includes $89 million more than Gov. Chris Gregoire’s proposal that was released prior to session, Alexander said. That includes money for supportive employment. “Every single person that’s disabled that wants access to supportive employment will have access to that in our budget,” he said.

The budget would eliminate state funding for the Puget Sound Partnership and reduces the Department of Ecology by 14 percent. Alexander said PSP has access to many millions in federal funds, and removing state support won’t affect that.

State employee compensation would be reduced via a 24-day furlough — or two days per month starting next budget year.

Alexander said they’re not giving up on the idea of expanded gaming. “We will be exploring the options of gaming alternatives, whether that be in the area of extending video terminal machine gaming to our existing non-tribal casinos” or punch-card technology. He said the potential revenue is attractive, particularly in contrast to an increased sales tax, which Republicans do not support.

Rep. Maureen Walsh explained a cut to TANF — temporary assistance for needy families. The current lifetime limit is five years, but this budget would reduce it to four years. Walsh said the hope is that it will “incentivize people to get out there, get a job” and not need the program.

Alexander said he’s shared this budget with the Governor’s office, Senate budget writers and Rep. Ross Hunter, the House Democrats’ budget lead. He said Hunter scribbled a few items down for use in his own version of the budget.

Rep. Charles Ross said the idea in releasing a House Republican version of the budget is to show “what the world would look like” if Republican priorities were represented in a budget.

“For the last four years, I’ve had a position of seeing a budget that doesn’t represent the priorities of my community,” said Rep. Bruce Dammeier, and he’d vote no, year after year. He said this budget gives people a choice.

“We need to empower communities … we don’t always have to be throwing money into task forces and studies and all that,” Walsh said. “Is this budget perfect? Nope,” she said, but it’s a tough time, and she thinks people can step in and fill the gaps that do exist.

 

Tags: Budget