Fiscal panic is premature, governor says

Any prediction of a $2.5 billion state revenue shortfall is premature, Gov. Chris Gregoire told the Peninsula Daily News on Monday.

In a private conversation, the governor said two more revenue projections will pass before actual number- crunching begins in December and the Legislature faces finances in January.

As for now, “our economy is strong and steady. So if the national economy bottoms out or flattens out or even begins to recover, it would have a whole new approach for us.”

Gregoire’s other comments to the PDN included:

“We’re not done fighting” for federal Secure Rural Schools funds that repaid timber-dependent counties for harvest revenues lost to environmental regulations.

The state and its Native American tribes are solving problems outside of courtrooms.

“I inherited a situation where it was all about lawsuits,” Gregoire said, striking her fists together knuckle to knuckle to illustrate her point.

“We’ve got enough lawsuits; we’ve got enough court opinions.

“We don’t always get along, but now those lawsuits are the last resort first, not the first.”

No one has the political will to propose a state income tax.

“Low-income, middle-income people all see the sales tax as fair. They believe they’re paying the same as everybody else. They don’t see how regressive it really is.

“When you talk income tax, there is absolutely no comfort level whatsoever” in a tradeoff for lower sales taxes.

Repairs to the Hood Canal Bridge, new ferries for the Port Townsend-Keystone run and widening of U.S. Highway 101 between Shore and Kitchen-Dick roads in Clallam County all will remain funded.