Gregoire to Meet with Department of Revenue

Derek Wang
11/23/2009

Washington Governor Chris Gregoire will meet today (Monday) with the state Department of Revenue. It's part of an ongoing plan to tackle the state's budget crisis.

The problem is that there's a $2.6 billion hole in the state's current budget. That's the worst in about 80 years. By law, the budget needs to be balanced. And Governor Gregoire says there's no easy answer.

Gregoire: "There's no way out of this, there will be cuts. They must be done. But the question is do we do a more balanced way; do we do cuts as well as some revenue?"

The governor says entire programs could be eliminated, like programs that provide medical coverage and financial assistance to low–income and disabled people. Besides the cuts, the governor says she'll consider ending some tax breaks. And that's topping the agenda at the meeting with the Department of Revenue.

Gregoire: "One for example has to do with automobiles and biofuels and so on. Yes I think we should sunset that. I think people understand how it's to their advantage. And last legislative session we passed a incentive to buy an electric car, which I think is far more important."

Other tax increases could be in the works. However, speaking on KUOW's "Weekday," the Governor did not sound supportive of a potential state income tax.

Gregoire: "In this crisis, this economic crisis, worst in 80 years, you can look at the tax system in any state and nobody has the silver bullet, if you did it like this you could avoid this deep recession. It is an unprecedented, historic recession that we're in."

The governor will formally present her budget proposal next month. The legislature will then debate it in the upcoming session.

Derek Wang, KUOW News.

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