Granted, the Dow is up 12 percent in October and headed for its greatest one-month gain in almost a quarter of a century (January 1987). But you won’t find Chris Gregoire packing any confetti bags, and legislators remain as gloomy as the governor.
Recent Dow gains speak to the distant past and a hoped-for recovery of the distant future. But the critical concerns of our state government speak to the present. Projected revenue for the 2011-13 biennium has declined and a $2 billion reduction in state spending must be formulated when legislators convene in special session in late November. That’s on top of $4.6 billion in cuts signed into law earlier this year.
Gov. Gregoire did the right thing Wednesday when she asked state-employee unions to renegotiate contracts, as allowed in emergencies. After all, we can think of no greater emergency for legislative budget-writers than the lingering economic crisis. Her announced goal was modest and clearly in line with what is seen in the private sector. It’s also needed by state workers to protect funding of their own beleaguered departments. Gregoire wants state workers to pay 25 percent of their health-insurance premium instead of the current 15 percent. That would save the state $52 million over the biennium. Last year, Gregoire wanted a 26 percent contribution; the contract finally settled on 15 percent, up from 12 percent.
But later on Wednesday, the Washington Federation of State Employees rejected Gregoire’s request. This is not surprising, but it’s aggravating considering draconian cuts occurring elsewhere in state government. Take higher education, for example. University of Washington President Michael K. Young wrote in a letter Thursday: “Over the past three years, state funding for the University of Washington has been cut in half.” That is difficult to explain in a state that aspires to increase high-paying jobs. “Despite 20 percent reductions in administrative budgets, over $30 million saved through greater efficiencies, and nearly 1,000 job losses, the UW has had to increase tuition steeply and limit access to the University in order to balance its budget. These choices are not sustainable,” Young correctly concluded.