Latest revenue dip widens budget gap

As the state's revenue predicament worsens by day, the fight over how to fix it has just begun.

Thursday's forecast that state revenue will be down an additional $552 million only intensified that debate. Meanwhile, there's question of what to do with some $2 billion in federal stimulus funds ready to flow to the state.

To continue spending at current levels, the state needs to close a shortfall of $9 billion, up from a February estimate of $8.5 billion. The state Senate is expected to unveil its solution as early as Tuesday, followed by the House in the next few weeks. The Legislature adjourns April 26.

Though Republicans say they're hearing hallway talk that Democrats are preparing a proposal to raise taxes, Sen. Craig Pridemore, D-Vancouver, said after the most recent forecast that only cuts are on the table.

"Everybody's ox is going to get gored," he said.

Republicans, including Sen. Curtis King, R-Yakima, point out that the shortfall is more about wants than needs. The state will still take in an additional $67 million in revenue for the next two years, which King says warrants strategic cuts, including delayed raises or even pay cuts for teachers, public employees and legislators.

"We have to sit down and look at where we spent the money that got us into this." King said.

"I truly believe it can be done. No COLAs (cost-of-living adjustments), no wage increases and we may even have to look at a pay cut. It's much better to have as many people still working than lay a whole lot of people off.

"Members of the Senate and House should be the first ones to take a pay cut."

In the meantime, the call to tap stimulus money is coming from advocates for health care, clinics, hospitals, nursing homes and mental health services. They are facing at least $990 million in cuts under Gov. Chris Gregoire's proposed budget.

Randy Revelle, senior vice president of the Washington State Hospital Association, said legislators shouldn't even think about using stimulus funds to patch the shortfall.

"They should resist this temptation and guard the money for health care," Revelle said.

Depending on the scen-
ario, Yakima Valley Memor-ial Hospital, for example, is looking at anywhere between $10 million to $25 million in proposed cuts in reimbursement for the cost of caring for low-income people who get sick.

Programs slated for cuts include the state's Basic Health Plan for the working poor and Medicaid, and aid to the chronically poor and unemployed.

"We are a safety net hos-
pital and if a lot of people in the community become uninsured, we have to con-tinue to provide care," said Memorial chief financial officer John Vornbrock.

Yakima Regional Medical and Cardiac Center, a for-profit hospital that sees fewer poor and uninsured, would see about $3.5 million in cuts.

Randy Hyatt, co-owner of Hyatt Family Facilities, which has several senior care operations in Yakima County, said the proposed cuts would put facilities below cost. "Who makes up that difference?" he said.

Rep. Bruce Chandler, R-Granger, said that while the federal government dedicates some stimulus money to health care, there is still confusion in Olympia over exactly how it can and will be spent.

"A lot of people who thought they had tickets on that train are starting to realize they aren't going to get on," Chandler said.

Chandler also said Democratic leaders aren't being open enough with their budget deliberations, which has included some "exercises" that put the state through various scenarios.

"It's been a small group in a locked room," Chandler said. "If there was ever value in having a collaborative budget, this is it."

King said the Yakima Valley's legislative delega-tion remains committed to keeping the Yakima Valley School open despite the governor's proposal to close it in 2011.

"We have to protect the most vulnerable," King said.

Rep. Bill Hinkle, R-Cle Elum, said Democrats are waiting too long to attack the budget problem. "We've wasted enough time. It's time to act," Hinkle said in a statement.

* Leah Beth Ward can be reached at 577-7626 or lward@yakimaherald.com .