Governor proposes 1/2 cent tax increase to avoid deepest cuts.

Governor Gregoire today proposed a temporary, half-cent increase in the sales tax to forestall the worst of budget cuts that would come in order to close a $2 billion budget gap. THe increase would be in place for three years. She is recommending a referendum to voters that would occur in March.

She said that in briefings with House and Senate Democrats and Republicans she has received some level of acknowledgement that new revenue is required to avoid the most undesirable cuts.

She said the increase would generate the following:

  • $42 million for home care for developmentally disabled and senior citizens
  • $41 million for public safety, including parole services
  • $411 million for education, including support for higher education and levy equalization

The state sales tax hasn’t been increased since 1983, during the last significant state recession.

What about budget cuts? The governor proposed 17% cuts to each baccalaureate institution as expected. For CWU (http://www.ofm.wa.gov/budget12/recsum/375.pdf) the cut would be $5.9 million, but remember this is a proposal only. It will absolutely set the stage of legislative debates, but the ultimate solution will need 50 votes in the state House, 25 in the Senate, and the Governor’s signature.

Advertisements

About Linda Schactler

Linda is the former Director of Communications for the Washington State Senate, and former deputy director of the Washington State Higher Education Coordinating Board. From 2000 through 2010 Linda was the proprietor of Schactler Communications, an Olympia-based public affairs business. She holds a master of arts in English literature from Washington University in St. Louis. Linda can be reached at her Ellensburg office schactler@cwu.edu, 509-963-1384, or on her cell phone, 509-607-4103.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s