Preliminary estimates are that smaller caseloads translate into $157 million in lower costs for the state over in the next 16 months, and Gov. Chris Gregoire’s budget director says the good news may actually top $200 million.
That is still a fraction of the $1.5 billion budget gap lawmakers are hoping to close in a legislative session that ends March 8. But the caseloads report comes as at least a few lawmakers have been talking about alternatives – one of which is to issue revenue bonds backed by tobacco or lottery revenues.
The revenue bonds would be an alternative to a dicey tax measure Gregoire wants to put on the ballot to raise nearly $500 million a year.
Reporter Erik Smith had
this report Friday on the still vague alternative.
House Majority Leader Pat Sullivan told other reporters today nothing is settled. He did not embrace the idea.
And Gov. Gregoire told reporters during an afternoon news conference Friday that she is opposed to any such “securitization” – or revenue bonds, which could be paid off using Lottery or state tobacco revenues. Gregoire was Washington’s attorney general in 1998 when she played a lead role in negotiating the more than $200 billion national settlement of health-cost claims against major tobacco companies.
Washington has received yearly payments ever since – although the amount was cut by about 30 percent when the Legislature traded a portion of the payments for a lump-sum payment from bond houses 10 years ago.
“My message to the House and Senate is: Please do not give me a bill that has securitization in it,’’ Gregoire said.
Asked about lawmakers’ slow moves to close a $1.5 billion budget gap and questions about what new revenues could be raised, Gregoire said:
