Eastside legislators see more state budget problems on the horizon

A panel of eight local legislators said Thursday that after a hectic legislative session in Olympia, big question marks loom on variety of leftover issues for the next session — ranging from workplace compensation reform to the biennial budget.

A panel of eight local legislators said Thursday that after a hectic legislative session in Olympia, big question marks loom on variety of leftover issues for the next session — ranging from workplace compensation reform to the biennial budget.

Rep. Deb Eddy, D-Kirkland, said there’s no “good picture” on what the next top priority in the state legislative session will be – that will likely come in November, after the elections. But lawmakers, like Rep. Rodney Tom, D-Bellevue, pressed that the next session will likely be all about, “budget, budget, budget.” The state collected $1 billion less in taxpayer revenue in this biennium than last, one lawmaker said.

“There is a projection that we will have an additional $5 billion shortfall to address in January,” Eddy said. “When you add that to the fact that we have a double-dip in the stock market … we have a financial situation that will not be as easily dealt with as the last (session). That’s not to say we all had fun last year – we did not – but it was doable.”

The panel spoke to members of the Redmond and Kirkland chambers of commerce and business leaders during the forum, “Preparing for the Future and What is Being Done to Help Business?”

Funding for public schools and higher education, transportation, taxes and integrating the new federal health care reform bill were among the topics covered during the question and answer session held at Matt’s Rotisserie at Redmond Town Center.

“There is so much uncertainty that we really need to focus on everything,” Rep. Roger Goodman, D-Kirkland, said.

The panel also included Rep. Ross Hunter, D-Medina, Sen. Eric Oemig, D-Kirkland, Rep. Judy Clibborn, D-Mercer Island, and Rep. Larry Springer, D-Kirkland.

The event came as election season in Washington got off to its official start last week, and more than half of the candidates are up for re-election.

The lawmakers didn’t even get a hearing on workplace compensation reform or liquor system reform in 2010. But they remain divided on I-1082, an initiative that is on the ballot this year.

Starting July 1, 2010, the initiative would authorize private insurance companies to provide coverage for on-the-job injuries, ending the state’s sale of workers’ compensation insurance and aligning Washington with the practice of 46 other states.

“You have to reform the system,” Clibborn said. “If we don’t start with the issue side that people care about, then you don’t get their permission to do the (budget) cuts or to raise revenue.”

Eddy said that the two most important things that would affect Eastside businesses in the short-term were the workplace compensation reform and unemployment insurance.

Tom said the legislature must remain “diligent” in continuing the State Route 520 project in this year. Tom, who is co-chair of a special legislative committee that Gov. Christine Gregoire organized to address 520 planning, noted that they have made significant gains with the state, officially unveiling their preferred alternative in April. Clibborn said she’s optimistic because even residents who opposed the 520 plan on the Seattle side are now “feeling comfortable” with it.

The Eastside is ready, but the Westside is still behind in funding.

“We’re going to need to do that otherwise you still have … an ‘expensive parking lot,” Hunter said. “The traffic on 520 affects the entire Eastside business community.”

The state’s preferred plan is expected to fall within the $4.6 billion budget for replacing the 520 bridge, but the state is still $2 billion short of that, according to Clibborn. Some of the funds will come from tolling on the 520 bridge, which is due to begin in 2011, and possibly by charging solo drivers to use HOV lanes on I-90. Clibborn said that possibility is becoming more and more likely because the federal government is turning down funding requests for corridors that are not getting money.