Dear Governor Gregoire
I am a retired businessman that has spent a good part of his career leading distressed companies and operations back to a sound footing. I am writing to you about an issue that I am sure weighs as heavily on your mind as it does on mine, and on the minds of our citizens in Washington State. That is our current state fiscal crisis. I can understand a hesitancy to deal directly with the crisis in the hopes that state revenues would return to pre-recession levels. But it appears we now have a new lower tax basis (pre-2008 levels) that may not recover for the better part of a decade. While it would be foolhardy to plan on a state income tax to bail us out of this fiscal crisis, the size of the problem and the dollars we need to solve it increases daily.
As Governor, you are starting your budget process for the coming biennium. I am proposing that as part of that budgeting process you declare a fiscal emergency and put a restructuring plan into affect. This can be accomplished within the executive department, or as a commission that is empowered to both recommend and to act.
The Washington State reorganization group’s charter would be to:
1. Review every board, commission, agency and department in state government to determine which are necessary, and decommission those that are not, while combining those that can be combined;
2. Review every board, commission, agency and department in state government in accordance with current management practices to eliminate unnecessary levels of management control, and to flatten the organization;
3. Review every major program, determine those that are necessary, and end those that are not;
4. Review every major program, identify opportunities for fraud and abuse, and take corrective action; and,
5. Review major agencies, departments and programs to determine activities most appropriately privatized, and privatize them.
Our state employees are one of the great assets we have in a restructuring strategy. They too are concerned citizens. They know what works and what doesn’t; what is necessary and what isn’t. For all of us, this is an opportunity to create a better, more effective state government.
Washington State government has a twofold fiscal issue. First, the size and trajectory of state spending far surpasses that of state tax revenue. Washington’s government spending has grown by 27 % since 2005. However, population growth in Washington State during the same period was only 7%. K-12 enrollments only grew 1 %, personal income only grew at 7 %, while state tax revenue only grew at 12%. Current state spending levels are unwarranted and unsustainable.
Second, growth in spending and increases in state employees are increasing across the board. We are spending $13 billion more each biennium than we did a few years ago. Additional spending includes $5 billion for all human services, $4 billion in K-12 education and $1 billion in government operations.
Our primary goal in economic recovery should be the creation of private sector jobs. Spending beyond sustainable levels, and raising taxes to try and keep up, are a drag on economic recovery. This creates an environment of uncertainty for our businesses and stifles job creation.
We are quickly reaching the point in which the citizens of Washington State will need to decide how much government they want, how much government they can afford, and how they are willing to pay for it. Those decisions should be made within the context of an effective and lean state government. Today that is not the case.
When I look at this professionally, I know that we have the opportunity to save billions of dollars while improving the delivery of services our citizens demand. There are professional organizations that could help restructure state government. Within Washington State there are many in the private sector, spanning all political persuasions that could be called upon to help. This is not a question of Democrat, Republican or Independent. It is a question of doing what’s right for the citizens of our state.
I remain at your service if I can do anything further to help address this fiscal crisis.
Best regards
Ed Borey
Candidate for State Representative, District 21, position 1