Today the House and Senate each released their budgets for the 2010 supplemental year.

I’m still wading through the pages and pages of documents of the budget and will post thoughts and comments soon. Here’s a link to the budget documents.

What do you think? What are your thoughts about the budgets? Are we going far enough for spending reductions or revenue increases or government reform?

We will deal with revenues, spending and government reforms front and center in the final few weeks. One important point: You’ll see a $30 million in savings in this year’s budget from spending in technology. This is not easy or simple to accomplish and there will be implications for IT jobs but we have no choice but to get a handle on how we spend $1.2 billion on technology. While I know this will not be easy for DIS, OFM and agencies to accomplish, I do believe we need to change the paradigm.

We need a statewide, enterprise-wide strategy and we must begin with realizing real savings in this year’s budget. Our larger goal is to write a thoughtful 2011-2013 state budget in technology, to deal with the lack of oversight by the Information Services Board, and the lack of clarity around governance. But for now, as we close group foster homes, we also need to get a handle on our technology spending.

Here’s the press release:

Budget proposal balances short-term needs against long-term recovery

OLYMPIA – Leaders in the state House of Representatives today rolled out a 2010 supplemental operating budget that outlines short-term budget adjustments with an eye towards long-term economic recovery.

“Our job, and our challenge, is to create a balanced budget in a time of severe economic distress,” said Rep. Kelli Linville (D-Bellingham), Chair of the House Ways & Means Committee. “But the distress is more than economic. It’s personal to the thousands of families, workers and business owners who are struggling to balance their own books. This budget is balanced as required by law, and as required by the values of compassion, justice and opportunity.”

Legislators approved a 2009-2011 operating budget last April when they balanced a $9 billion shortfall with no new taxes.

Since then, state revenues have plummeted another $1.7 billion, growing numbers of people are unemployed or underemployed and seeking state services, and recent lawsuit decisions and other mandatory costs total nearly $1 billion. Legislators must now pass a supplemental budget that bridges a $2.8 billion gap, bringing the two-year budget problem to $12 billion.

“By the time we leave Olympia, we’ll have solved 90% of a $12 billion budget problem without any new revenue,” said Rep. Mark Ericks, Vice-Chair of the House Ways & Means Committee. “We’re focusing first on short-term investments that will put people back to work, and long-term reforms that will cut the cost of government and streamline the way we do business.”

The proposal outlined by Linville and other budget-writers in the House includes an additional $653 million worth of cuts, including an early-action saving bill already passed, suspension of bonus pay for state workers, and other cost-cutting ideas.

It is expected that new revenue will be used to preserve funding for critical programs such as the State Need Grant, Apple Health for Kids, enhanced levy equalization, the streamlined Disability Lifeline, and more.

“We went line-by-line in our budget and asked the tough questions about what is necessary and what we can do without,” said Rep. Pat Sullivan, Vice-Chair of the House Ways & Means Committee. “This isn’t about trimming fat anymore. Providing our children a quality education that readies them for a good job means finding the money for financial aid and smaller classrooms. Keeping people out of costly emergency rooms means funding Basic Health and Apple Health for Kids.”

House budget writers say the revenue package will be decided in the coming days. Anticipated federal funding was calculated into the ending fund balance meaning legislators will pass a balanced state budget not based on federal aid.

Highlights of the House 2010 Supplemental Operating Budget proposal:

Reductions
• “Non-basic” K-12: $149.1 million
• Higher Education: $80.7 million
• Department of Social and Health Services: $202.6 million
• General Government: $19.3 million
• Department of Corrections: $24.2 million
• Natural Resources: $22.6 million
• Other human services: $18 million

Additional spending
• $653 in mandatory costs
o K-12 caseload and “staff mix” costs
o DSHS Medical Assistance, long-term care and other programs
• $243 in critical policy adds
o Lawsuits – Nursing homes, adult day health
o Federal requirements/specialized clinics
o School levies (HB 2893) and per pupil inflator

More highlights: http://housedemocrats.wa.gov/2010HouseBudgetHighlights.pdf
To see the media presentation: http://housedemocrats.wa.gov/2010HouseBudgetRollout.pdf

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Reuven.