The state Department of Revenue report outlining that Washington ranks 26th in the nation in the combined local and state tax rate is interesting on many fronts. Not least of which is most Washingtonians’ perception that, given Seattle’s appetite for taxes and the media attention that it generates statewide, one would think we’re dramatically higher.

But we’re not.

We are, simply, extraordinarily ordinary in terms of our tax rate.

Beyond taxes, the larger systems question we face is whether there is value for our dollars and if they are aligned with the needs of our society? The job of state government is public education and public infrastructure. Are our kids being educated effectively? Are we providing the right public infrastructure for our quality of life in the 21st Century? Are we caring for our children and elderly?

With the crushing economic downturn, and a consumption-driven revenue structure, the 2010 expected budget deficit is closing in on nearly $2 billion. This follows a projected $9 billion deficit last year that we balanced with a combination of federal money, direct cuts and sweeping various dedicated accounts into the general fund. We used duct tape the last time and did our best given the dramatic revenue ledge we faced.

Now–at a time when employment lags and families continue to struggle–we need to take a stronger stand in terms of bold, thoughtful, systems reforms of how we deliver services.

If revenue collection trends continue, there is a chance we may need to examine revenue increases in 2010 associated with vital services such as children’s health care and education, and I’m open to a meaningful, honest, objective and productive conversation. I represent the gracious people of Seattle in a progressive district that sent me to Olympia to think critically about tough public policy issues and do my best to engage on a substantive level. To look beyond the headlines and shallow political rhetoric of our times and to assess a way forward together.

But as a husband, father, technology entrepreneur and citizen legislator, I feel strongly about the need to have courageous honesty as state government to tackle some of the systems and structural challenges of how government works. My vote for any new revenues, if on the table down the road, would be dependent upon a bold, even radical initiative to make systems improvements in how we deliver services in key areas like education, technology, health care and transportation.

It goes without saying but I do not pretend for a moment to have the real deal budget answers. I thoroughly enjoy my warm seat as an official member of the Legislature’s back bench and I’m learning everyday. But this I know: We can no longer ignore some of the larger structural inefficiencies facing the institutional bureaucracy in key areas of government service that have, of course, existed for years regardless of the political party in control.

For example, we need to fund our higher education system based upon their performance in graduating students, not measuring the inputs of how many enroll. Seems like it should be easy to do. It’s not but it’s time.

In 2009 we passed virtually no substantive legislation regarding structural changes in how we run government. This year the Governor and Legislative leadership are working hard to put together more systematic reform proposals that take a bold step forward and recognize the extraordinary times in which we live.

Government is important and vital to our community and quality of life. A fair, equitable, progressive model of taxes is the price of living in a civilized society that treasures public safety, health care, parks, schools, nursing homes and foster homes for those who need care. We live in an innovative city in a dynamic state. Let’s not know the price of everything and the value of nothing. We are so much more than what we’ve become. We can make it work for our children’s children.

To move forward with a sense of conviction that we can do so much better, I’m all in. My own efforts to increase value for taxpayers and citizens continue in technology, education, energy and more.

As I said in July, and have tried to model in my own little corner of the Legislature, we need to have the courageous honesty to embrace the opportunity of this crisis.

This is our time.