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Sunday, May 11, 2003 - 12:00 a.m. Pacific
 
Illustration Ax and tax: a budget-balancing exercise

The Seattle Times recently invited readers to try their hand at solving the state's $2.65 billion budget shortfall. The online exercise allowed readers to choose from more than 80 different options for spending cuts and increased taxes. Here's what they did.
The participants...
Who are they; where do they live
* Total exceeds 100% due to rounding
"My husband and I enjoyed playing 'Dictator for a Day'!"
— Maybeth Saunders
"This was harder than it looked! And I didn't have to get a consensus on anything."
—Lisa Taylor

"Piece of cake. Our legislators are too worried about offending the businesses who bought them their seats."
—Jeannette Wilson
By the numbers...
Number of people who relied on spending cuts alone: 22 Number of people who relied only on new taxes and other revenue increases: 6 Number of people who ended up with a surplus: 473
Number of people who ended up with a deficit: 68 Number of people who balanced budget to the penny: 63 Biggest surplus: $13 billion
Biggest deficit: $2.4 billion
Percent of people who spent from state reserves: 20%
"This was not hard to do. You just need the guts to take the heat."
— Dean Fitzsimmons
 
Before we get started...
Percent of people who favor giving annual 2 percent cost-of-living raises to all state employees ($234 million): 34%
Percent of people who favor giving home health-care workers $2.07 per hour raises over the next two years ($98 million): 42%
"When people are being laid-off in huge numbers, why should state workers continue with salaries, pay raises and benefits well beyond those received by private-sector workers?"
— Dallas Hoover
 
Top 10 spending cuts

Adopt new method of calculating the state's share of government employee pension funds. Not a real cut, but saves $110 million 87%
Consolidate prescription-drug purchasing by major state agencies: $23 million 82%
Cut spending on goods and services — from paper clips to printing costs by one-fourth: $200 million 76%
Reduce spending on personal bodyguards for the governor and lieutenant governor by 50 percent: $1.3 million 71%
Cap liability claims against state government to $1 million to $2 million: $40 million 68%
End state support for the Sexual Abstinence Program: $388,000 56%
"Bureaucracy buzz cut" — Across the board cut to all state agencies. People who selected this option call for 6 percent across the board cuts, which would save $738 million 56%
Reduce or eliminate the Basic Health Plan (subsidized insurance for the working poor): $100 million-$500 million 55%
Close state film office, which tries to woo Hollywood producers to Washington: $879,000 52%
Halt Medicaid prenatal care coverage for undocumented immigrants: $50 million 52%
Top 10 revenue increases

10 percent tax on cardrooms: $61 million 65%
50-cent-per-pack increase in cigarette tax: $81 million 63%
Increase liquor tax $1 per liter: $58 million 57%
Extend sales tax to golf and bowling lessons: $5.5 million 50%
5-cent tax per 12-ounce soft drink: $272 million 49%
Extend sales tax to haircuts and beauty services: $49 million 42%
Extend sales tax to dance studios: $2.5 million 42%
Increase statewide sales tax (by 0.1 to 1 percent): $176 million-$1.7 billion 39%
Extend sales tax to cable television: $60 million 35%
Eliminate sales tax exemption on newspapers: $6.4 million 34%
"Government, like private business, needs to drastically reduce its size and expenditures."
— Al Chukitus
"Raise taxes, for Pete's sake."
— Name withheld

"The state MUST live within its means. As a laid-off Boeing worker, I can only support minimal tax increases."
— Curt Wittinger
Bottom 10 spending cuts

The "meat ax" approach — entirely eliminate 17 different state programs, including the University of Washington, State Patrol and the Legislature. Though we told people this was not a real option, a few chose it anyway. 3%
Eliminate public-emergency information system: $250,000 7%
Eliminate consumer-protection enforcement: $6.9 million 10%
Halt state air- and water-quality programs: $50 million 12%
Halt Department of Health food-safety/shellfish-protection program: $6.5 million 13%
Close Naselle, Coulter Creek and Hurd Creek fish hatcheries: $800,000 14%
Eliminate Washington Council for the Prevention of Child Abuse and Neglect: $1.3 million 18%
Eliminate Washington Conservation Corps: $390,000 18%
Stop reimbursing hospitals for acute care to the uninsured: $82 million 19%
Reduce nursing-home reimbursement rates by about 7 percent: $34 million 23%
Bottom 10 revenue increases

"Pass the hat" — ask people to donate money to state government 6%
Eliminate sales-tax exemption on prescription drugs: $443 million 8%
Lift sales-tax exemption on food purchases: $1.4 billion 10%
Increase business-and-occupation tax (by either 10 percent or 25 percent): $410 million-$1 billion 12%
Eliminate sales-tax exemption on agricultural feed and seed: $97 million 15%
Increase state property tax (by either 25 cents or $1 per $1,000 in property value): $250 million-$1 billion 17%
Forgo future tobacco settlement payments in exchange for immediate cash: $800 million 16%
Eliminate sales-tax exemption on manufacturing equipment: $293 million 20%
Extend sales tax to bakery products: $54 million 21%
Add sales tax to gasoline (on top of existing gas tax): $352 million 23%
"In these hard economic times, we should stop spending the money we do not have. ...No money, no spend. It's that simple."
— Wayne Corey

"Do not take away from schools, social welfare and assistance to the poor — that's an investment in the future and the stability of society."
— Matt Roewe
"I'd have Tim Eyman and friends sent on a yearlong trade mission to Taxachusetts, er, Massachusetts, so they can feel what it's really like to be overtaxed."
— Name withheld

"More taxes are not the answer!"
— Lou Haller
Other notable spending cuts

Grant early prison release to about 1,200 low-risk offenders, eliminate post-prison supervision for thousands more, and reduce drug sentences: $95 million 51%
Suspend Initiative 732, which guarantees annual cost-of-living raises for teachers and other school employees: $500 million 34%
Eliminate optional Medicaid nonemergency dental, vision and hearing coverage for low-income adults: $52 million 34%
Eliminate Medicaid coverage for children in families earning more than $32,000 (current eligibility level is $45,000). Would bump an estimated 40,000 kids off coverage: $40 million 30%
Other notable revenue increases

Impose 1 percent personal income tax: $2.4 billion 26%
Allow State Lottery to run "Quick-draw Keno" every few minutes: $38 million 29%
"This was much easier than I thought. I cannot understand what the problem is. Make the cuts, legalize gambling and close the (tax) loopholes."
— Name withheld
"The real answer is an income tax, but I know that's truly unthinkable without a charismatic leader to sell it."
— Louise Dustrude

"Why we don't have an income tax is beyond me. Taxing earnings and protecting the poor is accomplished with this tax, and the revenues will grow as our economy grows."
— Susan Cross
Data analysis: Katherine Long, research editor

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