No more business as usual in Washington state government

THE magnitude and depth of this recession has made one thing clear — business as usual can no longer be the norm.

Our state faces a budget shortfall of historic proportions and for the coming 2011-13 biennium we must close a $4.6 billion gap. With more than 60 percent of the state budget constitutionally protected from reductions, we must cut one-third of the remaining amount.

It won't be easy. It will be felt. And there are few good options. But, these are historic times and they call for an entirely different look at what state government can and can't do.

The budget I proposed two weeks ago does not rely on new revenue. This past November, voters soundly rejected any notion that revenue should be increased. That, combined with the worst economic downturn in our lifetimes, has led to a budget that uses the word "eliminate" 80 times. These are complete eliminations. They will not return.

However, my priority started not with what we could eliminate, but what we could do differently. I tasked state agencies to continue in their push to be more modern, lean and efficient. I asked that we begin laying a new foundation for a 21st-century government that still serves the most vulnerable, educates our children and protects the public in a time of lagging recovery.

To get to that transformation, we asked eight questions that I've seen no other state ask, and offered results that I've seen no other state propose. Online, in town halls and through a bipartisan group that set out to help transform our budget, we looked hard at every state agency and function. We did so with complete transparency.

We started with, "Is this an essential state service?" We asked whether it could be done by someone else, if it could be funded differently, or paid for by user fees, and whether we could make the program more efficient or require performance incentives.

The answers led to the most significant transformation of government services that have been proposed in our state. We are breaking the silos of state government, eliminating duplication of services and modernizing our delivery. In doing so we've taken on a field of sacred cows.

In my proposal, I consolidate 21 agencies into nine. I put 12 state properties up for sale. I eliminate one prison and one juvenile-corrections institution. I ask for the people who use state parks to pay for them, and not have all taxpayers responsible for their upkeep and protection. I require adult family homes to pay for the full cost of their licensing. I cancel the 2012 presidential primary, which is done out of tradition, not necessity (Washington relies on caucuses to select their candidates).

I've addressed the unfunded liability in our pension system, saving $11 billion over 25 years. I'm addressing health-care inflation to save $26 billion statewide over the next 10 years. And I've asked state employees, who haven't had a cost-of-living increase in four years, to shoulder more of their health-care burden and to take a 3 percent pay reduction. Along with other statewide elected officials, I've requested that the commission that sets our salaries to give us the same pay cut.

I made some decisions because I wanted to, and many because I had to. By its very nature, government is a methodic process. In times of calm that system works. In times of crisis, urgency is essential and boldness is required.

Even so, it's important to remember that our core mission is serving people. We're not selling a product or service, rather we're protecting the public, educating our kids, incarcerating prisoners, keeping highways safe and preserving our environment. With many of the cuts we're forced to make, we stretch the safety net thin. More than ever we will need to rely on community groups, faith-based organizations and neighbors to help shoulder the burden.

In January the Legislature convenes and will use my budget as a starting point. They will find what I did — options are scarce, decisions are tough, bold reform is a must and time is of the essence.