Our Northwest Economy

Washington’s State Employee Health Care System In Crisis

OLYMPIA, Wash. – Washington's state-employee health insurance system is in crisis. It faces a significant cash shortfall over the next year-and-a-half. In fact, if it was a privately-run insurance plan, state regulators likely would have taken it over by now. Correspondent Austin Jenkins reports on the debate in Olympia over how to shore-up the system.

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Federal Budget May Cut Back Radiation Detector Devices

RICHLAND, Wash. – Hundreds of radiation detection devices at U.S. border crossings and ports were developed at the Pacific Northwest National Laboratory in Richland, Washington. They are designed to detect dirty bombs. As Correspondent Anna King reports, U.S. Senator Patty Murray is concerned that money for the program appears to be running out.

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WA Senate Democrats Consider Temporary Sales Tax Increase

OLYMPIA, Wash. -- Democrats in the Washington state senate are weighing whether to embrace a temporary sales tax increase or a menu of more targeted taxes as proposed [yesterday] Wednesday by Governor Chris Gregoire. They're also debating whether to propose a larger tax package than the governor's 605-million dollar plan. Olympia Correspondent Austin Jenkins reports.

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Wash. Legislature Scrutinizes Taxpayer-Funded Forest Payments Program

OLYMPIA, Wash. – For more than a decade, Washington state has paid small forest landowners for trees they're not allowed to cut down. Last year that program was suspended amid allegations that some of the landowners who cashed-in didn't deserve the money. Now the state and forest owners are clashing over how to reform the program and restore funding. Olympia Correspondent Austin Jenkins begins our story in Lewis County in Southwest Washington.

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Cantwell argues for immediate small bank bailout

Washington Senator Maria Cantwell hopes to pressure Treasury Secretary Timothy Geithner into providing more money to small community banks to be loaned to Washington small businesses. Cantwell was in the eastern Washington City of Spokane Valley today for a discussion with local bankers and business people. Spokane Public Radio's John Vlahovich reports.

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UNIVERSITIES LOOK FOR NEW REVENUE SOURCES

In light of past budget cuts and those expected in the near future, universities are scrambling for new revenue sources. Glenn Mosley reports.

One of the questions put to University of Idaho President Duane Nellis following the UI's win in last year's Humanitarian Bowl college football game was how could the university best harness that energy and those good feelings from that game to its advantage. Nellis said wins on the athletic field were one way a university can raise its public profile:

Nellis: “I think that when we go out with out sponsors, it helps us gain new sponsors, with the interest in the university at the national level.”

That's just one of the methods the UI and other universities are trying to use to their public profiles to help them find new revenue sources as state resources are reduced.

Another example: Nellis spoke recently at the Idaho Ag Summit about the university's agreement with the Simplot Company to help operate the UI's research center in Parma, Idaho, which was threatened by budget cuts.

Officials in higher education around the region and the country say they need to be more innovative in terms of finding revenue sources because they do not expect that recent state funding cuts will ever be restored.

I'm Glenn Mosley reporting.

Foreclosure Bill Passes The House

The Oregon House of Representatives easily passed a bill this morning (Monday) aimed at keeping banks from neglecting properties they've foreclosed upon. Majority Democrats argued that banks would be more motivated to clean up foreclosed houses, if letting them go to pot could bring fines up to 150 dollars a day. Portland-area representative Lew Frederick said the bill is meant to help neighborhoods hit hardest by the foreclosure problem.

Lew Frederick: “Not only does it impact just the visual situation, it impacts the financial status of those families that have placed their life savings in those properties and now find their property values going down, and continuing to diminish.” ?

Enforcing the bill would be up to local governments. The bill would allow banks 30 days to fix up a property before being fined, and they could have a local hearing to fight the fines. Some Republican lawmakers questioned the untold cost to businesses of the fines – especially to locally-owned community banks. ??The bill next heads to the Senate.

WA Budget Shortfall Grows To $2.8B

OLYMPIA, Wash. -- Washington's current budget shortfall has grown slightly to two-point-eight billion dollars. The new number reflects increasing demand for state services and a Supreme Court tax case the state lost. Next week in Olympia Senate Democrats plan to roll-out a proposal to close the shortfall. They'll offer up a combination of cuts and tax hikes. But Senator Rodney Tom, the Senate's number two budget writer, [today] Friday dismissed a proposal in the Washington State House to temporarily raise the state sales tax.

Rodney Tom: “If you look at in much better times when there was an initiative for one percent for education, that went down two-thirds to one-third in a much better economic environment so I think that's wishful thinking.”

Senator Tom says he's more interested in sin taxes like raising the tax on cigarettes to bring in new revenue. Republicans remains staunchly opposed to new taxes. They say it will harm the state's economic recovery. [Washington lawmakers [today] Friday did get some good news from the state's revenue forecaster. It appears the two-year drop in state tax collections is leveling off.]

Advocates Push Bigger Tax Credit For Working Families

SALEM, Ore. – Just weeks after Oregon voters approved a tax hike on the wealthy, some lawmakers and social service groups [today] Friday pushed a plan to effectively lower taxes paid by the working poor. Salem Correspondent Chris Lehman reports.

Lawmakers Debate Online Schools

SALEM, Ore. – Students of online schools in Oregon are in limbo. The future of virtual schools -- as they are known -- is one of the most contentious issues in the Oregon legislature. The question is how should the state oversee school districts that span hundred of miles and exist largely in cyberspace. The issue proved too thorny for lawmakers last year, so they turned it over to a task force. This month, that group is asking the Legislature to have the state Board of Education hash out the details. As Salem Correspondent Chris Lehman found, that means students don't know if they'll be able to continue with their online studies.

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