The Associated Press
OLYMPIA — Gov. Chris Gregoire proposed higher taxes on gas, soda, candy and gum today in order to avoid more government cuts and to help fund education in response to a court order.
In her final budget plan, Gregoire said a budget without new revenues would force the closure of state parks, eliminate food assistance programs and cause additional cuts in education.
The new wholesale tax on gasoline and diesel fuel — paid by refineries but likely passed on to drivers — would eventually rise to 4.62 percent. The governor also wants to extend taxes on beer and the business taxes paid by doctors, lawyers, accountants and others.
“We need revenue if we’re going to meet our constitutional and moral responsibility to fund education,” Gregoire said. The total revenue from the new tax and tax extensions would be about $1 billion for the two-year budget cycle that starts in July.
Washington state governor-elect Jay Inslee will take office in January facing a projected $900 million deficit for the next two-year budget ending in mid-2015.
That doesn’t include money lawmakers will need to spend to improve funding for education as directed by the state Supreme Court earlier this year.
Inslee has said he will not raise taxes.
Gregoire said a 2013-15 budget without taxes would have unacceptable consequences for people across the state and would hinder the state’s economic recovery.
Gregoire’s budget, even with revenues, does include some cuts. She proposes to block cost-of-living increases for teachers, saving $360 million, and cuts funding for local government programs by $57 million. Her budget totals $557 million in various cuts or savings.
Overall, Gregoire’s budget would total $34.4 billion in spending, up about 10 percent from the current biennium.
