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Some recent posts you may have missed:

Governor’s “Book 2” Budget Still Emphasizes Cuts over Revenue

Increasing the Sales Tax and Funding the Working Families Tax Rebate

Modernizing the Sales Tax

Governor Gregoire's Tax Proposals

Investing in Washington’s Workforce

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A Balanced Approach: Increasing and Modernizing the Sales Tax

In our new Policy Brief, the Budget & Policy Center offers a balanced approach to dealing with the recession's impact on the state budget. To maintain our economic competitiveness and essential services for struggling families, we recommend that policymakers generate additional resources by modernizing and temporarily increasing the state sales tax -- Washington's largest source of revenue -- and funding the Working Families Tax Rebate.

Our proposal would generate an additional $1.2 billion in resources that could be used to prevent further economically damaging cuts. The remaining deficit could be closed through a combination of additional revenue strategies, an extension of federal recovery funds, and one-time transfers and changes (including accessing the Rainy Day Fund).

It is important to note that tax increases under this proposal would remain a modest share of total actions taken to close shortfalls during the FY2009-11 biennium. The graph below shows that tax increases under the proposal would account for barely one-sixth of total measures taken to balance the budget over the course of the biennium. Budget cuts, federal funds, fund-transfers and other changes, would each constitute larger shares of total budget solutions.



Click here to read the entire report.

New Policy Brief: Increasing and Modernizing the Sales Tax

Washington has responded to our national recession thus far with
$3.5 billion in cuts. Facing a new $2.6 billion shortfall, even deeper
cuts are being proposed that would harm our ability to have an educated
workforce, a strong health care infrastructure, and economic security.

A more balanced approach is needed. One option is to modernize and
temporarily increase our state's major revenue instrument--the sales
tax—and pair it with the Working Families Tax Rebate.

For more detail on this proposal, see our new policy brief.

FY09-11 Budget Would Cut Economic Security Spending by 23%

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Cuts in the Governor's supplemental budget proposal combined with already enacted spending reductions would amount to a 23 percent drop in funding for programs that help people meet their basic needs.

According to a new analysis by the Budget & Policy Center, the Governor's budget would reduce state funding for programs that provide child care assistance to working families, eliminate the General Assistance - Unemployable program, which provides financial and medical support to people who are unable to work due to disability, and more.

The table below details the cuts in the Governor's supplemental budget in the area of economic security.

FY09-11 Education Budget Cuts Would Total 14% - Higher Ed Gets 23% Hit

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The Budget & Policy Center recently released an analysis of the Governor's supplemental budget proposal that includes $1.6 billion in cuts to vital state programs and services. To read the entire paper, click here.

In the area of education and opportunity, the total budget cuts, including the enacted cuts and the Governor's supplemental budget cuts for the 09-11 biennium, would amount to a 14 percent reduction in spending from preschool to universities. Higher education and worker training would be hit particularly hard, with a 23 percent cut in total.

The table below details the Governor's proposed budget cuts in efforts to improve education and opportunity in the state.