This is a special update of the Federation Hotline on Wednesday, Dec. 9.
The governor today unveiled her constitutionally required supplemental budget with only existing revenue.
It is a budget balanced on the backs of quality services and state employee families.
It’s unacceptable and now we have to fight for an alternative budget that generates new revenue, closes some of the tens of billions in tax loopholes and asks Federation members on the front lines common sense ways to save money.
Even the Governor admits it’s an unacceptable budget and she will propose a “Book 2” budget once the Legislature convenes in January.
“I do not support this budget. ... for me it is unjust,” the Governor said.
The Governor said her “Book 2” budget in January will be a combination of revenue increases, closing tax loop holes and exemptions, and cuts.
So it’s not the end of the story. But while the governor can propose a “Book 2”alternative budget, that doesn’t mean the Legislature will go along. In fact, we fully expect lawmakers to propose even more drastic cuts. Already, Senate Republicans are talking about taking away your step increases.
The Governor finds some $850 million in budgeting techniques to help fill the expected $2.6 billion to $2.7 billion deficit. That leaves about a $1.8 billion deficit to fill under current projections.
So, here is where we stand in the “Book 1” all-cuts budget unveiled by the governor today:
• Cuts to your health benefits. Your current 12 percent of premium costs would remain, but with less money going into overall funding, you’d pay 12 percent of higher costs. Also, the governor’s all-cuts plan calls for higher deductibles, office visit fees and other point-of-service costs in 2011.
• Closing Frances Haddon Morgan Center in Bremerton by 2011, and closing Rainier School by 2014 - with one cottage at Rainier closing this biennium. In Developmental Disabilities, there would be an expansion of the successful State-Operated Living Alternative (SOLA) program, but not enough to offset reductions in the residential habilitation center program.
• Closing Ahtanum View Corrections Center in Yakima, which cares for elderly and seriously ill inmates, and Pine Lodge Corrections Center in Medical Lake.
• In Juvenile Rehabilitation, the governor proposes no institution closures but instead closures of cottages and elimination of beds at Naselle Youth Camp, Maple Lane and Green Hill Schools. The recent consultants report warned against any reductions. Under the Governor’s proposal, Naselle Youth Camp would be reduced to 53 residents; Maple Lane School would have one cottage cut; and Green Hill School would have two cottages closed. The budget also assumes lower risk assessments to move more residents from institutions to group homes.
• Elimination of the Basic Health Plan and General Assistance-Unemployable, among others and “suspension” of the interpreters program in DSHS. The already poorly treated interpreters have been organizing for a union with the Federation.
• A cut of $100 million in higher education.
• A cut of 1,527 state employee positions, of which about 40% would be represented by the Federation.
• Some cuts in Community Corrections that still have to be analyzed.
CALL TO ACTION
To recap:
The governor issued her first version of the 2010 Supplemental Budget (“Book 1”) Dec. 9. It is an all-cuts budget, as required by law. But come January she will also issue a second version of the budget (“Book 2”) that lays out a plan for legislators to raise revenue.
Call to action:
Call 1-800-562-6000. Tell your legislators to support a Book 2 budget that:
• generates new revenue;
• suspends targeted tax breaks;
• and asks us where to find common sense efficiencies.
• We need a budget that does no more harm and preserves the quality of life in Washington.
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