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Stimulus or not, state budget doom coming soon to the workplace

• Published February 18, 2009

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The budget outlook just keeps getting worse at the Washington Capitol. If other West Coast states are a guide, many state employees will be lucky to hold onto their jobs this year.

A package of cuts that reduces Washington spending by about $300 million (plus other state savings using federal stimulus money) is headed for passage in the Washington Legislature today. It then goes to Gov. Chris Gregoire for signing.

The cuts are worth several hundred million more in the next budget cycle and include a freeze on hiring in the three branches of government, limits on travel and equipment purchases and the like.

But it’s just a tiny step toward closing the state’s shortfall, and deeper cuts to the workforce are likely. House Majority Leader Lynn Kessler said recently that she and others are writing budgets to anticipate an $8.5 billion shortfall, which should become clearer after tomorrow’s preliminary revenue forecast is issued.

The federal stimulus money helps but is less than hoped-for, she said.

Rep. Jeannie Darneille, a Tacoma Democrat, said she is chopping roughly a quarter of the budget out of past allocations for 80 general-government agencies her House General Government Appropriations Committee is examining. Most are small agencies.

Darneille hasn’t been willing to give details but says “we are thinking boldly.’’

"My target is cutting $601 million from the 80 agencies, which is why I’ve aged so dramatically in the last month," Darneille said, trying to joke last week about a process that is actually giving her grief. "It's starting to wear on me … It's emotionally challenging. Our staff here is coming to grips that business as unusual is not going to be the same in the House of Representatives."

In other words, people are going to lose jobs.

Meanwhile the sky is darkening in other states:

A budget meltdown late last night in California led to the ouster of that state’s Senate Republican leader over his willingness to join Democrats in a tax increase sought by Gov. Arnold Schwarzenegger. And it means the GOP governor’s layoff notices to 10,000 workers – effective July 1 – are going out unimpeded. Click here and here.