Budget decision looms for Gregoire

Gov. Chris Gregoire says she will decide soon after Aug. 10 whether to call a special legislative session or make across-the-board budget cuts on her own to reduce a budget shortfall that is about $300 million if federal aid falls through.

Gregoire plans talks today with Democratic and Republican legislative leaders about the feasibility of having a two- or three-day special session in the fall to fix the growing shortfall.

The governor spoke with reporters Wednesday in her office, explaining that across-the-board cuts are her other option, but she thinks that is a “blunt instrument” she’d rather not use.

Executive-ordered cuts would carve 3.5 percent to 4 percent out of virtually all state-funded programs – prisons, social programs, and universities alike – with exceptions only for basic education, debt payments and pensions. Prisons alone could have to cut $25 million despite moving to shutter two institutions and close two others later, Gregoire said.

“My question to them will be, if I call them into special session, can they get it done and can they get it done in 48 to 72 hours?” Gregoire said, suggesting in almost the same breath she isn’t sure that’s possible based on what House Speaker Frank Chopp and Senate Majority Leader Lisa Brown have told her previously.

Gregoire said she will make her decision shortly after the next tax-collections report on Aug. 10. She is prepared to give lawmakers a draft budget proposal that would look a lot like the much-hated “all-cuts” proposal she offered last December.

She has held a series of budget hearing around the state but said Tuesday night’s session in Vancouver showed there is clearly no consensus about cuts or revenue.

The latest state revenue crisis is driven mostly by Congress’ failure to act – as Senate leaders once planned – to send extra medical and welfare aid to the states, which assumed the revenues in their budgets based on earlier promises.

Washington’s share of that aid is about a half-billion dollars, and Gregoire says she is not optimistic about getting it, despite efforts by U.S. Sen. Patty Murray and others to bring a vote before the Aug. 9 summer recess for Congress.

But the struggling economy is spinning fewer dollars than predicted into the state coffers, widening the gap an additional $85 million during the June 10-July 10 period alone.

Two House Democrats who chair budget and finance committees – Rep. Kelli Linville of Bellingham and Rep. Ross Hunter of Medina – have written Gregoire saying they doubt their majority party, which struggled to approve tax increases this year, can reach any quick agreement on spending cuts.

Some Republicans, notably Sen. Joe Zarelli of Ridgefield, have publicly called for Gregoire to order a new session, which can run up to 30 days once lawmakers convene. In his latest “Budget Tidbits” report, the Republican budget expert said Gregoire was prudent to assume federal aid isn’t coming if Congress doesn’t act before its Aug. 9 summer recess.