New revenue forecast shows balanced approach is vital to future prosperity

Today's revenue forecast -- which projects that the resources needed to sustain our vital public structures will fall short by $78 million in the current fiscal year and $5.1 billion in the next budget cycle -- makes one thing abundantly clear: we can not solve our ongoing economic crisis simply by cutting essential public services. 

Such a one-sided and unbalanced approach would harm our economic recovery by hollowing out the very systems and structures -- such as worker retraining, health care, and child care -- needed to help our state rebuild following the deepest recession in more than 60 years.

Instead, policymakers should keep all options on the table when it comes to addressing the recession's continued assault on the state budget, including sensible revenue options.

There are numerous ways lawmakers could preserve core public services through revenue enhancements.  Just a few of the these options include:

•     Raising taxes and fees on polluters: Options in this category include -- raising fees on businesses that contribute to air pollution or that contaminate state waterways; repealing a host of sales and business tax exemptions, such as those for chemical fertilizers and purchases of coal; and increasing the hazardous substance tax, which is designed to offset costs associated with environmental damage from oil and other toxic substances.

•  Increasing or creating new sin taxes on unhealthy products like cigarettes, hard liquor, and sugar-laden beverages.

• Closing wasteful, obsolete, or ineffective tax breaks: Each year, Washingtonians spend billions of dollars on special tax breaks for particular industries, businesses, or groups of individuals.  In addition to adopting long-term reforms to improve transparency and accountability for special tax breaks, eliminating even a fraction of these tax preferences could help maintain important public priorities.

• Modernizing the sales tax to include currently untaxed products and services -- such as elective cosmetic surgery; massage services; travel arrangement; and medically unnecessary drugs like Viagra and Propecia.

Washington's recovery requires a rational, balanced approach to the ongoing economic crisis.  Our new Framework for Prosperity tool provides a common sense, vision-based approach that includes measuring our progress toward key public priorities and securing our fiscal future through long-term reforms.