[nfbwatlk] Gov. Gregoire proposes solution to current state budget deficit, Governor's Press Release, December 17 2010

[Nightingale, Noel]

Link:
http://www.governor.wa.gov/news/news-view.asp?pressRelease=1623&newsType=1

Text:
Gov. Gregoire proposes solution to current state budget deficit
For Immediate Release: December 17, 2010
Supplemental budget builds on actions by Legislature in special session

OLYMPIA - Gov. Chris Gregoire today proposed a supplemental budget to address shortfalls in the current budget caused by the slow economic recovery. This proposal applies to the budget in effect until June 30, 2011.

The governor's budget proposal builds on legislative action taken last week during a one-day special session. Bills passed by the Legislature enacted $588 million in savings against a $1.1 billion shortfall. The deficit was created when the state lost more than $1 billion in the last two revenue forecasts and costs continued to rise for mandatory services.

"My supplemental budget takes the next step to solving the shortfall we now face," Gregoire said. "The cuts we have to take are just as painful as those in my budget for next biennium. I urge the members of the Legislature to take quick action on my proposal when they convene in January to prevent cuts from having to be even deeper."

Many of the proposed reductions are similar to those in the 2011-13 budget the governor unveiled Wednesday but they take effect sooner, including:
* Elimination of additional state funds for kindergarten through 4th grade class size reduction efforts for the entire 2010-11 school year, saving $42.1 million.
* Reducing levy equalization payments to eligible districts by 6.287 percent for Fiscal Year 2011, saving $18.0 million.
* Shifting part of the June 2011 apportionment payment to school districts from the last business day of June 2011 to the first business day of July 2011. This will result in $253 million in savings in the 2009-11 budget.
* Elimination of the Basic Health Plan beginning March 1, 2011. All insurance subsidized through the Basic Health Plan will be eliminated, which affects 66,000 individuals, saving $26.8 million in General Fund-State and $21.3 million in other funds.
* Elimination of the Disability Lifeline Grant and Medical programs, saving $43.5 million in GF-S and $22.6 million in federal funds.

The governor announced her 2011-13 budget and transformative reforms earlier in the week, including plans for controlling costs in pensions and health care as well as consolidating central service, natural resource and civil rights offices and agencies. Additional reforms will be announced in early January.