Press release: New analysis shows cumulative impact of cuts

For immediate release

December 30, 2009

Contact:

Kery Murakami

Communications Manager, Washington State Budget & Policy Center, 206-276-7598 (cell)

Gov. Christine Gregoire’s initial budget proposal would result in a nearly 25 percent reduction in some key areas when combined with cuts already made last session, according to a new analysis.

The report released by the Washington State Budget & Policy Center on Wednesday is a reminder of the cuts that have already been made in response to the recession. The $1.6 billion in cuts proposed in the Governor’s supplemental budget proposal are on top of the $3.5 billion in cuts already made to the current biennial budget  in May, the report notes.

Combined with the already -enacted reductions, the new cuts would result in a nearly 14 percent overall reduction  in the state’s near-general fund.

Combined, the two waves of cuts would mean:

·         State spending on economic security would have been by reduced by nearly a fourth -- 23 percent -- during the worst recession since the Great Depression. Just when the services are needed most, thousands of people --including children -- would lose health coverage. Thousands more working families would lose access to child care.

·         Investments in education and opportunity - from preschool to universities - would be cut by 14 percent. Higher education and worker training  -- areas that not only affect the lives of working families but also the health of state businesses -- would also be cut by nearly a fourth, 23 percent.

·         Programs that create thriving communities - such as public safety and balanced economic development - would receive an 8 percent cut.

·         Efforts to ensure the health of people and our environment would be cut by 15 percent.

Some specifics:

·         Over 65,000 people would lose access to affordable health insurance

·         16,000 children would lose health insurance coverage

-more

·         Over 20,000 people who are unable to work due to disability would lose financial and medical assistance

·         12,300 students from lower income families would lose an important source of financial aid

·         2,400 working families per month would lose child care assistance

·         1,500 three-year-olds would lose access to early learning opportunities.

“The $1.6 billion in cuts proposed in the Governor’s supplemental budget proposal should not be considered in isolation,” BPC research director Jeff Chapman said. “These cuts are on top of the $3.5 billion in cuts already made to the current biennial budget when it was signed in May.”

The proposed cuts drive home the need for a more balanced approach – of prudent cuts and sufficient revenues -- than the largely one-sided, cuts-only tack of last session.

Not only would the proposed cuts directly affect the lives of many in the state, reducing investments in education, job training, and health care would also leave us poorly positioned for economic recovery when the recession ends.

Gov. Gregoire has signaled a willingness to take a more balanced approach in a second budget proposal in January -- including roughly $1 billion in cuts and $700 million in additional revenue.

Even with the revenue proposal, the state would be taking a severely imbalanced approach in dealing with the recession, a previous BPC analysis found. Combined with last session’s cuts, revenue increases would make up 8 percent of the total reaction to an over $11 billion problem. Cuts in core public services would total 40 percent.

The Governor’s $700 million would also be an inadequate drop in the bucket when viewed in light of the $11 billion deficit.. Help for working families in paying for child care, preventing costly healthy problems by supporting at-risk pregnant women and funds to clean up toxic sites would still be cut under the Governor’s proposal.