This evening I had a wonderful occasion to visit with Governor Gregoire and members of the Board of Regents, faculty and other key folks for the University of Washington. As always Gregoire was thoughtful, insightful and reflective about the reality facing our state during these challenging times. She articulated, with great care, the reality of the budget crisis looming once again.

She carefully reminded us of the breakdown of the budget cuts made in the 2009-2011 biennial budget:

Low income health care: -11%
Other human services: -8%
all other: -8%
Higher education: -7%
K-12 education: -5%
(includes adjustments for tuition increases and federal recovery dollars). While those cuts were extremely painful, it is important to remember that Washington maintained it’s high bond rating unlike many states. Had we failed in that category, our costs would have increased even more.

Equally important, she outlined the reality of the looming budget crisis facing the 2010 Legislative Session–slated for 60 days–that begins in two months.

At this point the projected budget deficit is at least $1.7 billion. We should expect it go higher given that the economic crisis continues. The reasons: Reduction in revenues, tax lawsuits against the state, rising case loads and more. We as a state are, believe it or not, in better shape than most others. Yet we struggle with a consumption driven economy and a tax structure that doesn’t offer much flexibility on any front. The options are awful by any standard even when one considers a thoughtful combination of additional reductions, increased revenues and improved efficiencies.

According the Economic and Revenue Forecast Council, the Governor reported that state revenues will lag the economic recovery; job growth will lag economic recovery; unemployment will remain high; and less revenue is expected to be collected in 2009-2011 than in 2007-2009.

A 70% majority of the $31 billion budget is protected by state constitutional or federal requirements. Only $9.3 billion is ‘not protected’, a mere 22% of the general fund budget.

To put it in perspective, how big is $1.7 billion?

Here are three symbolic but legitimate examples of public services and programs that add up to about $1.7 billion:

Example one:

We could close all 34 community and technical colleges statewide that serve 470,000 students: $1.4 billion
Close Department of Commerce: $103 million
Close Department of Revenue: $218 million
Total: $1.72 billion

Example two:

Eliminate all state funding for the University of Washington, Washington State University: $1 billion
Eliminate all state funding for Central, Eastern, Western and the Evergreen State College: $337 million
Eliminate all state funding for Department of Health: $193 million
Total: $1.53 billion

Example three:

Close the Department of Corrections: $1.6 billion. (How’s that for perspective?)

Obviously, these three examples are beyond draconian and are only meant to illustrate the depth of the crisis we face. The Governor is, of course, legally obligated to present a balanced budget to the Legislature under the revenues provided–that is, she can’t submit a budget that is dependent upon new revenues to be balanced. It’s the Legislature’s job to make a decision about the value and cost of public services and to appropriate the public’s money. The Governor’s job is also to help educate the public about the reality of the programs behind these numbers. And I admire her for that Herculean effort.

Ironically, when I first campaigned for office we had a budget surplus; when I was elected we had a $2 billion deficit; when I was sworn in the deficit was $6 billion; by the end of my first session it was $9 billion–and I barely got to spend a dime.

Everyone has a moral core that goes the soul of our belief system. There are real people living real lives behind these budget numbers and these cuts. I recently visited the Aloha Inn, a highly successful transitional housing facility along Aurora Avenue in our legislative district. Many of the 55 residents live on $339 month from the General Assistance-Unemployable (GAU) program.

For me, the moral obligation of government is to care for those who have no voice, to remember those who are forgotten. Now is the time for government to step up and help. We cannot retreat into allowing so many lives to fall through the cracks. And yet, we must have the courageous honesty to make tough decisions and institute bold systems reform.

That is why we must also embrace the opportunity of this crisis–to let it pass without structural changes would be a terrible mistake that we would regret for years to come.

Some may wonder privately why I am so aggressive in my effort to reconsider our state’s technical strategy associated with a $300 million state data center as well as how we manage and operate more than $1.2 billion a year in technology. As a citizen legislator, how can I stand idly by while we build a palatial data center two blocks from the State Capitol at the same time we methodically close group foster homes?

As Tevye in Fiddler on the Roof said, “If I try to bend that far, I will break.”

Your partner in service,

Reuven.