February 25, 2011
As we near the half way point of the 2011 session, the focus of the Legislature switches to the fiscal committees and to the House and Senate floors. This week has been consumed by the House and Senate Ways and Means Committees considering and acting on bills with fiscal impact that have been approved by the various policy committees. Saturday, the House will commence action on House bills that have been approved by the various committees.
At the same time, the House and Senate Ways and Means Committees will intensify review and discussion about the 2011-13 budget and how we bridge a $4-5 billion gap. Of course, voting for additional revenues will be virtually impossible, thanks to Tim Eyman’s Initiative requiring a 2/3 vote to pass tax increases or to eliminate tax exemptions. (By the way, some of us continue to question the constitutionality of the initiative because Article 2, section 22 of the Washington State Constitution clearly states, “No bill shall become a law unless on its final passage the vote be taken by yeas and nays, the names of the members voting for and against the same be entered on the journal of each house, and a majority of the members elected to each house be recorded thereon as voting in its favor.” [emphasis added].) I look forward to joining others in challenging this ill-conceived initiative in court.
When we talk about the budget, it is usually in terms of billions or millions of dollars. Most of us find it hard to comprehend just what cutting a billion dollars means. So I want to try to put a face on one important facet. The 22nd District has more state employees than any other district, no surprise since we are near the capital. We also have a large number of K-12 employees in our three school districts.
What do budget cuts, increased employee health care costs and increased employee retirement deductions mean to the average state employee? Well, I did some calculations and ran them by the Office of Financial Management. The loss in take home income is major. For the 2011-13 biennium, the average state employee will lose $4,500 – $5,500 per year. K-12 teachers during each of the 2012 and 2013 school years stand to lose $2,250 for a starting teacher to $8,297 for a veteran teacher. Teachers who have received national board certification and teach in low income schools stand to lose even more. Other K-12 employees face very similar losses in income.
That is not only a big hit on employees and their families; it will be a big hit on our local businesses as they struggle to recover their economic base. With approximately 20,700 general government employees and 3,322 K-12 employees in Thurston County, as well as 650 higher education faculty and staff at TESC, this will have a major impact on our local businesses. It will make it much more difficult for them to buy a car, major appliances, or a home. And it will reduce discretionary expenses on movies, restaurants, recreational activities, etc.
Further, it is inevitable that there will be more state employee layoffs when we adopt the 2011-13 budget. These layoffs will have their biggest impact on Thurston County because it is the seat of state government. So as you think about the billions of dollars we will be cutting this year, please keep in mind how it impacts public employees and the negative impact is has upon the local economy.
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