'Wait till next year,' state Legislature says

They'll have to pay the piper next year -- or start backing off some of their promises.

And the biggest example of kicking it forward isn't even on that list. It's the decision by the Democratic governor and the megamajorities of House and Senate Democrats to expand the budget by more than $300 million at a time the state faces a projected deficit of at least $2 billion.

Lawmakers and Gregoire did leave $835 million on the table. But the Legislature still has to write a 2009 supplemental budget and deal with any further revenue declines before it starts on the next budget and all those pent-up demands for new spending.

Last month's revenue projection plummeted by more than $420 million and any further degrading of the national and state economy could leave the state perilously close to broke.

Republicans, including Gregoire challenger Dino Rossi, have taken to talking about a "punt" list and accuse the Democrats of promising major progress on everything from health care and education to transportation and tax relief while postponing the ticklish question of how to pay for it.

"It's clear they're afraid of telling the voters what all of this costs," said Rossi, a former Senate budget chairman who lost to Gregoire by 133 votes in 2004. "They want to get their headlines and nice blurbs for their election brochures. The way I see it, the only question is which taxes are they going to raise and how high are they going?"

But the governor and Democratic leaders flatly deny any cynicism or election-driven attempt to avoid paying for their promises just yet.

In session post-mortems with reporters, Gregoire, House Speaker Frank Chopp and Senate Majority Leader Lisa Brown insisted that Democrats have been making incremental progress on a host of issues, phasing in health care coverage for kids, daylong kindergarten, and so forth.

They note that many of the kick-ahead issues still are being studied by task forces that will report back after the election on such issues as more stable financing for schools and ferries. Of course, the Legislature created those task forces, and their post-November deadlines.

They shrug off criticism that Democrats are deliberately postponing many of the tough choices.

"No, I can tell you with certainty there is no conspiracy," Gregoire said in an interview. "To think anybody would sit around figuring that all out is laughable."

She said she and Democrats have "taken on the most difficult problems our state has. We have stepped up and we are making the investments. What would Dino Rossi and the Republicans cut? What would they not do?"

Each issue is nailed down and financed as soon as there is broad agreement by stakeholders and enough votes are lined up, Gregoire said. Some issues, such as health care reform, simply take more time, she said.

Gregoire acknowledges a potential deficit of $2 billion, about $400 million less than the nonpartisan Senate budget staff projects, but said talk of tax hikes is premature.

"I haven't talked about raising taxes," she said.

Revenue projections can be wildly off the mark, the governor said, noting that she came into office with a $5 billion shortfall projected, whereas the state now has a revenue cushion that is the envy of the nation.

Some legislative Democrats privately acknowledge that tax increases may be required, and that some of the new endeavors, such as cleanup of Puget Sound, ferries and the paid family leave program will require dedicated tax sources.

They also readily concede that some programs, such as the new sales tax rebate, may have to await rosier times, and that other goals, such as daylong kindergarten for all kids, may have to be stretched out over time.

Other kick-ahead goals, such as finding new money for transportation and public schools, still are in the murky early stages.

Brown has gone to court to try to erase the two-thirds supermajority now required to raise taxes, but says that doesn't mean tax hikes are inevitable. The Senate did muster a majority vote for a liquor tax increase to support tough DUI laws.