Tuesday, July 20, 2010

Got any money saving ideas?

This year is shaping up to be another difficult budget time for our state legislature. We are looking at another $3 billion dollar shortfall this biennium. Since 2008 our state has had to figure out how to deal with a $12 billion shortfall, $5.1 billion of which was filled by cuts to services and progams,$3.6 billion from federal funds, $1.7 billion transferred funds, $.8 billion from new revenue, $.6 billion from the Rainy Day Fund and an ending fund balance of $.25 billion.

The recession is just part of the reason. More people are needing services like Medicaid, health care costs are rising, the prison population is growing, more children are enrolling in public schools and there are increasing state employee pension obligations. We lost $7.8 billion in expected state revenues because of low consumer spending, home values and sales dropped as well as other factors.

Our economy is improving, but at a very slow rate. It will take a few years before we can rebound from this. Currently our state's revenue is comprised 44.7% from taxes, 27.6% from federal grants, 24.7% from charges and miscellaneous revenues and 3% from licenses, permits and fees.

Governor Gregoire is approaching this upcoming budget using Priorities Of Government (POG). This budget process starts with a zero-base new budget. Each piece of the budget will be looked at as to whether it should be in the state's budget based on several criteria in three categories:

FISCAL RESPONSIBILITY
1. Is the activity an essential service?
2. Does state government have to perform the activity or can it be provided by others?
3. Can the activity be eliminated or delayed in recessionary times?
4. Does the activity need to be paid for with state general funds? Should users pay a portion of the cost?
5. Are there federal funds or other fund sources available to support this activity?

EFFICIENCY
6. Are there more cost-effective, efficient ways to do the activity?

PERFORMANCE
7. Can the activity be the subject of a performance contract?
8. Can the activity be the subject of a performance incentive?

Governor Gregoire is seeking public input on the budget. She has arranged to hold four public meetings in Tacoma, Everett, Vancouver and Spokane to ask for suggestions on ideas citizens may have regarding areas where money could be saved or work done more cost-effectively. The public is invited to share ideas at transformwabudget.ideascale.com.

Once an idea is posted on the web site, citizens can vote whether they support that idea or not. The ideas with the most votes rise to the top, which will help the Governor as she creates this next budget. Some ideas are fairly broad, such as welfare reform. Others are specific, such as not requiring a front license plate.

Be involved! If you have an idea, submit it. You could help save a program important to you with your suggestion of how to do it more efficiently or by suggesting somewhere to cut spending not needed right now.

Developmental Disability advocates are drafting efficiency ideas to present to members of the Governor's Committee on Transforming Washington’s Budget. If you have ideas that will help preserve services important to individuals with developmental disabilities and their families let us know. Remember, change is made by those who show up. Let your voice be heard!

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