Jolt
Afternoon Jolt: Budget Shortfall Highlights Corporate Tax Breaks
As long as we went with an early version of On Other Blogs Today, I figure it's okay to break out an early Jolt too. Besides, this one is too fun to hold on to.
So, the state house Democrats responded late yesterday afternoon to Gov. Chris Gregoire's proposed cuts and made budget recommendations of their own; the legislature is currently facing a $1.1 billion shortfall for the rest of the '09-11 biennium (having already dealt with a $12 billion shortfall over the last three sessions.)
The house and senate Republicans responded earlier this week. (The cash cow they've identified ? TANF, temporary assistance for needy families.)
The Democrats' proposal would save some programs that the governor's would put out of business: The Basic Health Plan, Children's Health Program, stipends for the unemployable, and pharmacy benefits for people on Medicaid.
They did recommend some cuts, though, including a $25 million reduction in college loans and a $24.5 million cut for smaller class size funding.
(Full list here.)
Their cuts, however, only hit $693 million. In contrast, the governor's proposal cut about $733 million and the senate GOP's proposal—which like the house Dems', preserves the Basic Health Plan (they cut public employee salaries)—cut about $850 million.
The house Democrats try to make up the difference between their $693 million in cuts and the $1.1 billion shortfall with fund transfers, going after lapsed taxes, and delaying some programs.
However, state Rep. Dave Upthegrove (D-33, Burien) coyly slammed the caucus on his FaceBook page last night by making another suggestion:
Closing the bank loophole—which comes to about $50 million—was on the house Democrats' to-do list last year, but the senate Democrats balked .
Rep. Upthegrove's suggestion doesn't solve the problem, but it's the kind of solution, ending corporate tax breaks , to which the Democrats give a lot of lip service, but don't make good on.
To be fair, finance chair Rep. Ross Hunter (D-48, Medina) got more serious about it last session, ending an $85 million tax shelter for out-of-state corporations. But seriously, there's about $1 billion in corporate tax shelters the Democrats have not taken a look at, including the bank exemption.
So, the state house Democrats responded late yesterday afternoon to Gov. Chris Gregoire's proposed cuts and made budget recommendations of their own; the legislature is currently facing a $1.1 billion shortfall for the rest of the '09-11 biennium (having already dealt with a $12 billion shortfall over the last three sessions.)
The house and senate Republicans responded earlier this week. (The cash cow they've identified ? TANF, temporary assistance for needy families.)
The Democrats' proposal would save some programs that the governor's would put out of business: The Basic Health Plan, Children's Health Program, stipends for the unemployable, and pharmacy benefits for people on Medicaid.
They did recommend some cuts, though, including a $25 million reduction in college loans and a $24.5 million cut for smaller class size funding.
(Full list here.)
Their cuts, however, only hit $693 million. In contrast, the governor's proposal cut about $733 million and the senate GOP's proposal—which like the house Dems', preserves the Basic Health Plan (they cut public employee salaries)—cut about $850 million.
The house Democrats try to make up the difference between their $693 million in cuts and the $1.1 billion shortfall with fund transfers, going after lapsed taxes, and delaying some programs.
However, state Rep. Dave Upthegrove (D-33, Burien) coyly slammed the caucus on his FaceBook page last night by making another suggestion:
Closing the bank loophole—which comes to about $50 million—was on the house Democrats' to-do list last year, but the senate Democrats balked .
Rep. Upthegrove's suggestion doesn't solve the problem, but it's the kind of solution, ending corporate tax breaks , to which the Democrats give a lot of lip service, but don't make good on.
To be fair, finance chair Rep. Ross Hunter (D-48, Medina) got more serious about it last session, ending an $85 million tax shelter for out-of-state corporations. But seriously, there's about $1 billion in corporate tax shelters the Democrats have not taken a look at, including the bank exemption.
