State eyes multistate lottery

BRAD SHANNON, THE OLYMPIAN

OLYMPIA, WA - 12/19/01 -- Facing a $1.25 billion budget chasm, Gov. Gary Locke recommended joining a multistate lottery and imposing higher taxes on card rooms and hard liquor Tuesday as ways to blunt cuts to social programs during the economic downturn.

Locke, who warned that his supplemental budget packs a lot of pain, would shut down 30 state agencies and programs, including the Washington State Library, while cutting $566 million in programs, a large share of that in human services.

He left elementary and secondary education almost unscathed, proposing to trim it by less than half a percent, compared to 10 percent cuts in the targeted agencies.

The cuts are necessary because the state's slowing economy went into a tailspin after the Sept. 11 attacks, drastically cutting the state revenue outlook.

Combined with costs for lawsuits, growing public school enrollment and other rising expenses, it produced a $1.25 billion financial gap.

The governor's budget proposal is the first step in the state budget approval process. The budget will be presented to the Legislature when it meets Jan. 14.

"Clearly, the cuts we are proposing will cause some pain, but this also is a budget that protects education funding, continues to deliver state services to those who need them most and puts us on solid footing to sustain those services in 2003 and beyond," Locke said.

"We retain community-based services for the elderly, disabled and mentally ill, and we preserve access to health care for the poor," Locke added.

Overall, Locke would reduce state jobs by a net 440 positions. He also would delay cost-of-living pay increases for the remaining state workers and increase their share of medical insurance costs.

He also would cut state aid to counties and cities, including health districts, which were hurt by the passage of Initiative 695 two years ago.

Yet even by tapping more than a half-billion dollars in state reserves and new revenue, including new fees for syphilis testing and some fishing licenses, Locke's budget plan makes a half-billion dollars of cuts to state programs. Included is elimination of the state's supplement to the federal Supplemental Security Income program, which pays as much as $25 a month per person.

Reactions

Interest groups criticized the plan, as expected, though advocates such as Tony Lee of the Freemont Public Association said they were relieved the proposed cuts weren't deeper. Adult dental programs and a general-assistance program for unemployable people were retained, for instance, Lee noted.

Still, Lee said, cuts to preventive programs aiding children would be "penny-wise and pound-foolish" because the lack of assistance could result in more "high-risk children."

Similarly, nursing home advocates decried cuts in state payments and a two-month delay for a cost-of-living increase due next year.

Lawmakers' reactions were mixed, and many questioned whether Locke's gambling proposals have a chance of passing. Also in doubt is Locke's use of all but $304 million in state reserves and his reliance on a windfall Medicaid reimbursement that the federal government has denied once already.

"It's dire," said Rep. Sandra Romero, D-Olympia, who said she'd like to see fewer cuts and more of a look at closing tax loopholes for businesses.

"I certainly endorse much of what the governor has done," said Rep. Barry Sehlin, R-Oak Harbor, the ranking Republican on the House Appropriations Committee, who pointed to elimination of 30 programs or agencies. "I'm confident some of those need to be eliminated."

However, Sehlin said, he questions Locke's assumption that the state will get a $350 million reimbursement from the federal government for state Medicaid expenses. The money, he said, "is at great risk."

Sehlin said he also questions Locke's priorities in proposing pay raises for state workers, saying the governor "opts to protect state employees at the expense of the needy and working families."

He called the proposal "The Big Game budget" and said the gaming taxes would "hit the middle-income guy ... Joe Sixpack."

Smaller safety net

Democratic lawmakers initially gave Locke good marks for his plan, calling it a good start toward solving a $1.25 billion problem without making deeper cuts.

"I'm just pleased the governor has been creative and thoughtful about it," said House Speaker Frank Chopp, D-Seattle. Long employed by a social-service provider, Chopp said he plans to work with human-services advocates to limit damage the budget might wreak on those most vulnerable.

"The safety net is there, but it's a bigger mesh," Senate Majority Leader Sid Snyder, D-Long Beach, said. "I think there'll be some people who fall through."

The multistate lottery proposal and a 10 percent state tax on card rooms could have a rough ride. Snyder said he dislikes that idea although it might look better to him later.

"Before we get out of here, I may end up voting for it, if the alternatives are worse," he said. "All of it is bad medicine."

House Minority Leader Clyde Ballard, R-East Wenatchee, had nothing good to say at all, accusing Locke of gimmickry with his use of reserves, the lottery and the assumption the state would receive $350 million in federal aid.

"I think they need to go back and rewrite the budget," said Ballard, who has feuded with Locke. "It's an embarrassment, quite frankly."

The Big Game

Gov. Gary Locke proposed the state defray a part of its $1.25 billion budget shortfall by joining The Big Game, a multistate lottery that he hopes could raise $25 million for the state in the first year of operation.

The Big Game is played in Georgia, Illinois, Maryland, Massachusetts, Michigan, New Jersey and Virginia. The jackpots start at $5 million and can grow as high as $200 million. Players also can win smaller cash prizes as low as $1.

Drawings are held every Tuesday and Friday. The jackpot as of Tuesday was $32 million. Tickets for the Big Game cost $1, which allows players to pick six numbers -- five from 1 to 50, and a sixth from 1 to 36.

According to The Big Game's Web site, on average 35 percent of its proceeds are dedicated to government programs in the sponsoring states. Fifty percent is returned in prizes, five percent goes to retailers, and 10 percent goes to cover administrative costs.

The odds of hitting the jackpot are one in 76 million

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