From the Director - Legislative Session to Convene January 10: State Fiscal Problems Remain
By Stan Finkelstein, AWC Executive Director
The 59th Washington State legislature is scheduled to convene at noon on Monday, January 10.

As distinct from the recent past, there was less turnover in the November elections, and many of the returning legislators are seasoned warriors of previous budget battles. There will be two new members of the Senate, transferring control to the Democrats.

Assuming Governor-elect Gregoire remains governor, the state will for the first time in a number of years have one party controlling both the Legislature and Governorship. What this portends for the legislative session remains to be seen.

From the standpoint of the Association, we are guardedly optimistic that both the Republicans and the Democrats will favorably receive our legislative priorities. Those priorities include: enhanced transportation funding, economic development assistance, control of zoning of gambling activities, fiscal issues, and a number of other issues.

Please see the list of AWC’s Legislative Priorities, in this email or online at www.awcnet.org/legpriorities. In addition, the Association will actively support the Tri-Association legislative agenda, including efforts to secure state funding for needy cities and counties.

New Governor - New Cabinet

If everything goes according to plans, Governor-elect Gregoire will be sworn in on January 12. Given the delay in certifying the election, there are few signals being sent as to who will be the directors of the key agencies.

In the past, the Association has had substantial involvement with the Departments of Community, Trade, and Economic Development, Health, Ecology, Labor and Industries, Revenue, and the Office of Financial Management. These are agencies with which we’ve had good relationships and we’ll have to nurture new relationships with the new directors, when and if changes are made.

State Fiscal Problems

For the third time in a row, the Legislature will be forced to adopt a budget characterized by either continued reductions in services or the need for significant tax increases. As a parting shot, Governor Locke has recommended a budget calling for substantial "sin" tax increases to balance the 2005-07 budget. Amongst those were increases in the taxes on beer and wine, and a new tax on soda pop. It remains to be seen if the Legislature is so inclined to increase taxes. However, further service reductions may be equally unpleasant.

Unfortunately, the state’s continuing fiscal malaise increases the difficulty of securing financial assistance for the state’s more fiscally distraught cities. However, I believe that if legislators are continually reminded of their cities’ difficulties they will respond. City officials are strongly urged to remind their House and Senate members of their cities’ needs, and that they will be relied upon to assist.

In Closing

At this point, the 2005 session is clouded by uncertainty. Uncertainty as to whether the election of governor will be contested; uncertainty as to how the budget battles will be resolved; uncertainty as to what will be on the governor’s legislative agenda; and uncertainty as to whether the two parties will be able to "bury the hatchet" and work for the common good of the state’s citizenry. Personally, I’m guardedly optimistic that the legislative leadership wants to work collegially and address the state’s needs.