Gregoire proposes new fuel tax to fund education
OLYMPIA, Wash. (AP) - Gov. Chris Gregoire proposed higher taxes on gas, soda, candy and gum Tuesday in order to avoid more government cuts and to help fund education in response to a court order.
In her final budget plan, Gregoire said a budget without new revenues would force the closure of state parks, eliminate food assistance programs and cause additional cuts in education.
The new wholesale tax on gasoline and diesel fuel - paid by fuel distributors but likely passed on to drivers - would eventually rise to 4.62 percent. The governor also wants to extend taxes on beer and business taxes paid by doctors, lawyers, accountants and others.
"We need revenue if we're going to meet our constitutional and moral responsibility to fund education," Gregoire said. The total revenue from the new tax and tax extensions would be about $1 billion for the two-year budget cycle that starts in July.
Gregoire noted that the country's top oil companies have made billions of dollars in profits this year, "so I expect them to do this without passing this on to consumers."
She said she saw no other way to find the large amount of money needed to properly invest in the education system.
"Time is up," she said. "There is no more recess."
Gregoire said the candy and soda tax was a way to pay an award issued by an independent arbitrator in October to give pay raises to the state's home-care workers.
"Do I think these people need and deserve raises? Absolutely," she said. "I just can't do it at this point. So I've tried to find a revenue source that had a direct nexus."
Rep. Ross Hunter, D-Medina and chairman of the House Appropriations Committee, said Gregoire's budget proposal "exposes the basic structural problems that will make it difficult to build an operating budget that meets the needs of Washington's citizens and business community without changing the revenue picture."
But House Republican's point person on the budget, Rep. Gary Alexander of Olympia, said that the plan is likely "dead on arrival."
"While I can see using a few of her budget reductions, I just can't see the incoming legislature or the new governor using her overall budget or her tax increases as a starting point," he said in a written statement.
Washington state Gov.-elect Jay Inslee will take office in January facing a projected $900 million deficit for the next two-year budget ending in mid-2015.
That doesn't include money lawmakers will need to spend to improve funding for education as directed by the state Supreme Court earlier this year.
Inslee has said he will not raise taxes. Gregoire said a 2013-15 budget without taxes would have unacceptable consequences for people across the state and would hinder the state's economic recovery.
Sterling Clifford, a spokesman for Inslee, issued a written statement saying that Inslee appreciated Gregoire's "thoughtful effort and determination to address Washington's fiscal reality."
"In the upcoming legislative session, Gov.-elect Inslee will lay out his own budget priorities that reflect his vision for state government and his commitment to create a lasting economic recovery with secure jobs for Washington's middle-class," Clifford wrote.
Republican Sen. Andy Hill, who would lead the chamber's budget committee under a proposed GOP-led majority coalition, said Gregoire's budget will be a point of reference as lawmakers try to build a sustainable spending plan.
Hill noted that the state will bring in $2.1 billion in more revenue during the next budget cycle, even without new taxes.
"It's really a matter of, 'How do we prioritize that spending?'" Hill said.
Gregoire's budget, even with revenues, does include some cuts. She proposes to block cost-of-living increases for teachers, saving $360 million, and cuts funding for local government programs by $57 million. Her budget totals $557 million in various cuts or savings. Her plan would also leave about $882 million in the bank.
Overall, Gregoire's budget would total $34.4 billion in spending, up about 10 percent from the current biennium.
Gregoire said she knows that her budget proposal is not likely to stay intact throughout the legislative process.
"I think we have done an immense amount of work that will help them as they begin the deliberative process," she said. "I don't expect a rubber stamp. That's not what they've ever done with anything I've produced."
Gregoire said that she believes that lawmakers will find it will be difficult to do all that needs to be done with all cuts.
"The only way you can do it is with revenue," she said. "So I've tried to give them a path to move forward."
In her final budget plan, Gregoire said a budget without new revenues would force the closure of state parks, eliminate food assistance programs and cause additional cuts in education.
The new wholesale tax on gasoline and diesel fuel - paid by fuel distributors but likely passed on to drivers - would eventually rise to 4.62 percent. The governor also wants to extend taxes on beer and business taxes paid by doctors, lawyers, accountants and others.
"We need revenue if we're going to meet our constitutional and moral responsibility to fund education," Gregoire said. The total revenue from the new tax and tax extensions would be about $1 billion for the two-year budget cycle that starts in July.
Gregoire noted that the country's top oil companies have made billions of dollars in profits this year, "so I expect them to do this without passing this on to consumers."
She said she saw no other way to find the large amount of money needed to properly invest in the education system.
"Time is up," she said. "There is no more recess."
Gregoire said the candy and soda tax was a way to pay an award issued by an independent arbitrator in October to give pay raises to the state's home-care workers.
"Do I think these people need and deserve raises? Absolutely," she said. "I just can't do it at this point. So I've tried to find a revenue source that had a direct nexus."
Rep. Ross Hunter, D-Medina and chairman of the House Appropriations Committee, said Gregoire's budget proposal "exposes the basic structural problems that will make it difficult to build an operating budget that meets the needs of Washington's citizens and business community without changing the revenue picture."
But House Republican's point person on the budget, Rep. Gary Alexander of Olympia, said that the plan is likely "dead on arrival."
"While I can see using a few of her budget reductions, I just can't see the incoming legislature or the new governor using her overall budget or her tax increases as a starting point," he said in a written statement.
Washington state Gov.-elect Jay Inslee will take office in January facing a projected $900 million deficit for the next two-year budget ending in mid-2015.
That doesn't include money lawmakers will need to spend to improve funding for education as directed by the state Supreme Court earlier this year.
Inslee has said he will not raise taxes. Gregoire said a 2013-15 budget without taxes would have unacceptable consequences for people across the state and would hinder the state's economic recovery.
Sterling Clifford, a spokesman for Inslee, issued a written statement saying that Inslee appreciated Gregoire's "thoughtful effort and determination to address Washington's fiscal reality."
"In the upcoming legislative session, Gov.-elect Inslee will lay out his own budget priorities that reflect his vision for state government and his commitment to create a lasting economic recovery with secure jobs for Washington's middle-class," Clifford wrote.
Republican Sen. Andy Hill, who would lead the chamber's budget committee under a proposed GOP-led majority coalition, said Gregoire's budget will be a point of reference as lawmakers try to build a sustainable spending plan.
Hill noted that the state will bring in $2.1 billion in more revenue during the next budget cycle, even without new taxes.
"It's really a matter of, 'How do we prioritize that spending?'" Hill said.
Gregoire's budget, even with revenues, does include some cuts. She proposes to block cost-of-living increases for teachers, saving $360 million, and cuts funding for local government programs by $57 million. Her budget totals $557 million in various cuts or savings. Her plan would also leave about $882 million in the bank.
Overall, Gregoire's budget would total $34.4 billion in spending, up about 10 percent from the current biennium.
Gregoire said she knows that her budget proposal is not likely to stay intact throughout the legislative process.
"I think we have done an immense amount of work that will help them as they begin the deliberative process," she said. "I don't expect a rubber stamp. That's not what they've ever done with anything I've produced."
Gregoire said that she believes that lawmakers will find it will be difficult to do all that needs to be done with all cuts.
"The only way you can do it is with revenue," she said. "So I've tried to give them a path to move forward."
How about reducing the salary of incompetent Governors? Get rid of WASL testing and other useless programs first.
Gregoire's budget plan skips new funding for CRC
How about raising taxes on all Gov. Employee's and Elected Officials?? They Don't want to cut spending so how about cut thier checks by 40-60%? If we need to tighten our belts then so should the Gov. All I have been hearing is raise taxes but No one is willing to cut spending..
How about a tax on how much tax you pay?
Even if more taxes was the answer (which it's not) it makes no sense to tax items unrelated to education. Additionally, it is insane to tax things you want society to use less of for a service you want to provide more of !!!!
Congratulations Washington Y'all voted for them and now you get your thank youÂ
bill but just remember; It's for the Children
I"m sure that's the last we'll hear about the funding problems of Washington's education system! Â After all, it's worked so well in the past!
That is a typical Gregoire response to any fiscal problem "more revenue". How about properly allocating the money you are already collecting? The problem with her approach is that eventually the increased revenue will be mispent and then we will need additional revenue to properly fund education. Politicians will never learn.
It's symple to get the Economy Turned around.. All they need to do is Cut spending then cut taxes. Cut taxes will put more people to work. When more people work the more they make. The more they make the more Taxes the Gov. can collect. Lower spending would also let the coffers build back up. As long as the Gov. has this Tax&Spend mentality we will never make it. What I just typed is Symple Economics.
Another of Gregoire's stupid ideas.
Taxes, taxes, taxes, the only thing democrats think about. Â The last place we should waste tax dollars on are the public schools. Â Until the teacher's unions are put out of business, no amount of money will improve our schools. Â This has been proven time and time again over the last several years, but our worthless politicians keep wanting to dump more money into them. Â Until our teachers are keeping their jobs because they are qualified and not because they pay union dues, will our schools have any chance of getting back on track. Â If voters weren't so stupid, they'd realize that by passing school bonds and levies, they are telling the teachers and their corrupt unions they are doing a good job. Â Those of us with an average intelligence know better and vote down school money measures. Â The rest, well, you know who you are and it's obvious you don't have a clue.
Washington has the highest fuel taxes in the US already.
Â
This would be a big boon to Oregon and Idaho and people fill up out of state. The cost for fuel will go up $0.10 per gallon with this tax.
Â
With a larger tax on doctors will increase the price of medicine which is already too high.
Â
Government is the problem, it is never the solution.
You know it Ralph. I live in WA, but work in OR. 1/2 mile from work, gas is $3.04 a gallon and the cheapest I find in WA is $3.14. So you can guess what I do....
 @disgustedmanÂ
And when it goes up another 4.5% to $3.14 per gallon you more folks will drive to Oreogn to get gas.
They will pass it along to the consumer??? Duhhhh
Â
That also goes along with raising the taxes on the rich. The rich are who make our products and keep us employed, There not going to eat that in there profits or there paychecks they will just raise the prices on there goods and pass it along to us. How about cut all pet projects the states spend there money on.
Â
Â
The State of Washington, along with Oregon, is already one of the highest in the nation for taxing fuel. Refineries will not swallow this tax and will most certainly pass it along to the consumer. Blocking the cost of living increases for teachers is crazy, especially when they already spend too much of their own money for classroom supplies. We say education is a high priority, yet we allow the taxes slated for education to be stolen for other programs. It's time that taxes collected are used only for what they were intended for. Basic accounting needs to apply to public funds. We must prioritize and pull back on what we are spending our public funds on. If the money isn't there, it isn't there and we can no longer spend on our children's future hoping the next politician will have the magic answer. There is no magic wand here; the choices are tough and painful, but it's what's needed for our future. We are only a short time away from following California and declaring bankruptcy as a state! Although I did not vote for Governor-elect Inslee, I hope he will be more responsible and aggressive in making the hard choices for our state. We are better than this! We need to stand up and be heard by our elected officials that enough is enough.
I have an idea  that's crazy enough it  just might work.  the state of WA takes in more than enough money to fund education..... they just choose to spend it on all kinds of things Â
How about the state fund education FIRST  and then squabble about  not having enough money for the less important  expenditures.Â
@kramr I do notice that they allways have enough for thier fat saleries first. The Gov. should spend the money on 1, Education,2Fire and The Police 3rd. All other should be put into Priority from there. They should get payed LAST!!!!!
@kramr That is way too logical to ever make it past the politicians.
 @kramr Great idea. I'm all for that.
yOU CAN TAX 100% ON THE DOLLAR AND SCHOOLS WOULD STILL NOT HAVE ENOUGH MONEY.
You cant fix this sinking ship by throwing money at it.
Trim Administration, get rid of the unions and run it like a business.
Non-public schools are running sucessful.
I feel sorry for anyone living in Washington... what a messed up state....Gregoire is a terrible governor.