Washington Business Winter 2012 | Page 19

a fix for the state budget must start with reforms Sen. Joseph Zarelli, R-Ridgefield Winston Churchill once said, “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” This year I hope the Legislature will act optimistically, treating our budget challenge as an opportunity to reset state government and guide it toward long-term sustainability. In order to craft a viable spending plan that will last, it’s important to remember where we’ve been. From 2005 to 2008, when times were good, the Legislature increased spending by a full 33 percent. Spending was growing twoand-a-half times faster than revenue. Three-plus years later, despite federal money infusions and the largest package of tax increases in state history, the struggle to close the gap between revenue and government’s spending desires continues. This, despite an anticipated revenue growth of around 7 percent for this budget cycle — an increase most employers would be more than satisfied to see. The most broadly-discussed options for closing the gap are familiar: reduce spending, increase revenue or some combination of both. But there is another option — one that must come first. If there is to be bipartisan support for solving our budget problem, reforms will need to be front and center. That’s consistent, because the reforms reflected in the budget created in 2011 — for instance, more choice for injured workers, a refocusing of the Basic Health Plan and disability lifeline, and clamping down on fraud and abuse involving food and cash assistance — had much to do with the bipartisan backing it received. A good place to look for reform opportunities is among the long-term obligations that are major cost drivers, such as state-worker pensions, health-care services, paying off the state’s debt and bringing our K-12 education system into compliance with court rulings. I agree with the governor when she says that everything must be on the table for discussion, including reforms that would affect services for non-citizens, lawsuit abuse reform, non-Indian gaming, state workplace efficiencies such as competitive contracting and defined-contribution Sen. Joseph Zarelli, R-Ridgefield Sen. Joseph Zarelli, R-Ridgefield pensions, and how the state subsidizes low-income child care. Some of those were identified as reform opportunities on our side of the aisle last year, but were sidelined for lack of support. It’s time to look at them again. I’m also open to reforming tax incentives that aren’t creating jobs as intended. The governor’s proposal to ask voters for a sales tax increase has gained traction in some circles in recent weeks. (continued on page 21) winter 2012 19