Morning Fizz
Her Position Hasn't Changed
1. We had an Afternoon Jolt early last week
that may have been a bigger jolt than we knew.
We identified the state's dedicated accounts as the day's loser because Lt. Governor Brad Owen overruled an objection by state Sen. Tim Sheldon (D-35, Potlatch) that an $85 million fund transfer from the liquor account to the general fund shouldn't stand because it amounted to a revenue increase. (Sheldon argued that the Washington State Liquor Control Board would have to raise additional revenue to make up for the hit and therefore passing the general budget required a two-thirds vote under Tim Eyman's I-1053.)
Owen has the final word and said Sheldon was wrong. The budget passed and all together the senate’s budget ended up including $455 million in fund transfers.
But according to a story in the Washington State Wire this week, Owen's decision is likely to cause a court challenge that could sink the whole budget. The Wire reports that the liquor industry, represented by former state supreme court justice Phil Talmadge, may sue over the WSLCB's likely response (raising the markup on liquor) to the budget raid. If a court rules with the industry, the entire budget could be overturned.
[pullquote]The budget passed and all together the senate’s budget ended up including $455 million in fund transfers.[/pullquote]
2. In more budget news, house ways and means chair Rep. Ross Hunter (D-48, Medina) responded to the GOP charge that despite the dramatic talk of cuts, state government is actually growing.
Here's the deal: The GOP is fond of pointing out lately that the roughly $33 billion in revenue for the 2011-13 biennium is $4 billion higher than the roughly $29 billion in revenue from the 2009-11 biennium. So, the Republicans grouse, why all the Democratic complaining about cuts? Shouldn't we be able to fund the same level of services we funded last time with $4 billion extra? If not, they say, government is growing to much.
Hunter's explanation? In the last biennium the $4 billion we got in stimulus money wasn't counted as revenue. In other words, this new budget's $33 billion is pretty much what we were working with last time (which is why we're now $5 billion short when—thanks to inflation and population growth—it comes to meeting the same needs from 2009-2011.) Hunter writes on his blog :
And Hunter has lots of charts to make his point.
3. In a bad sign for the medical marijuana legislation, Governor Chris Gregoire's typically mundane daily heads up press release on the next day's bill signings—there are nearly 40 bills queued up today including bills on liquor sampling, bullying, shellfish, ballot envelopes, definitions of wells, and innovative schools—came with an additional note.
"After taking action on this bill," the press release noted on the medical marijuana bill (the first bill on the long list), "Governor Gregoire will be accepting questions from the media for a short period of time before continuing bill action."
Asked if Gregoire was going to the veto the bill (which she has threatened to do because she says the proposed medical marijuana dispensary system would put state employees at risk of federal prosecution), her spokesman told us: "Can’t confirm that. Her position on the bill hasn’t changed though."
The Seattle Times has a good rundown on the controversy.
4. By the way, we published an extra batch of Fizz late yesterday afternoon, including: the news that Erica was mugged (she's fine), but her computer was stolen; word of bad polling on revenue referendums; and eat your heart out state Sen. Michael Baumgartner (R-6, Spokane), apparently you're not the best looking dude in Olympia.
We identified the state's dedicated accounts as the day's loser because Lt. Governor Brad Owen overruled an objection by state Sen. Tim Sheldon (D-35, Potlatch) that an $85 million fund transfer from the liquor account to the general fund shouldn't stand because it amounted to a revenue increase. (Sheldon argued that the Washington State Liquor Control Board would have to raise additional revenue to make up for the hit and therefore passing the general budget required a two-thirds vote under Tim Eyman's I-1053.)
Owen has the final word and said Sheldon was wrong. The budget passed and all together the senate’s budget ended up including $455 million in fund transfers.
But according to a story in the Washington State Wire this week, Owen's decision is likely to cause a court challenge that could sink the whole budget. The Wire reports that the liquor industry, represented by former state supreme court justice Phil Talmadge, may sue over the WSLCB's likely response (raising the markup on liquor) to the budget raid. If a court rules with the industry, the entire budget could be overturned.
[pullquote]The budget passed and all together the senate’s budget ended up including $455 million in fund transfers.[/pullquote]
2. In more budget news, house ways and means chair Rep. Ross Hunter (D-48, Medina) responded to the GOP charge that despite the dramatic talk of cuts, state government is actually growing.
Here's the deal: The GOP is fond of pointing out lately that the roughly $33 billion in revenue for the 2011-13 biennium is $4 billion higher than the roughly $29 billion in revenue from the 2009-11 biennium. So, the Republicans grouse, why all the Democratic complaining about cuts? Shouldn't we be able to fund the same level of services we funded last time with $4 billion extra? If not, they say, government is growing to much.
Hunter's explanation? In the last biennium the $4 billion we got in stimulus money wasn't counted as revenue. In other words, this new budget's $33 billion is pretty much what we were working with last time (which is why we're now $5 billion short when—thanks to inflation and population growth—it comes to meeting the same needs from 2009-2011.) Hunter writes on his blog :
That revenue, plus our use of a variety of funds that are no longer available, means actual spending this biennium will be less than it was in 09-11, and even less than 07-09. I believe this is the first time this has happened since WW II.
And Hunter has lots of charts to make his point.
3. In a bad sign for the medical marijuana legislation, Governor Chris Gregoire's typically mundane daily heads up press release on the next day's bill signings—there are nearly 40 bills queued up today including bills on liquor sampling, bullying, shellfish, ballot envelopes, definitions of wells, and innovative schools—came with an additional note.
"After taking action on this bill," the press release noted on the medical marijuana bill (the first bill on the long list), "Governor Gregoire will be accepting questions from the media for a short period of time before continuing bill action."
Asked if Gregoire was going to the veto the bill (which she has threatened to do because she says the proposed medical marijuana dispensary system would put state employees at risk of federal prosecution), her spokesman told us: "Can’t confirm that. Her position on the bill hasn’t changed though."
The Seattle Times has a good rundown on the controversy.
4. By the way, we published an extra batch of Fizz late yesterday afternoon, including: the news that Erica was mugged (she's fine), but her computer was stolen; word of bad polling on revenue referendums; and eat your heart out state Sen. Michael Baumgartner (R-6, Spokane), apparently you're not the best looking dude in Olympia.
