HeraldNet: New Gregoire economic advisor not afraid of taxes



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The Petri Dish

August 19, 2008

New Gregoire economic advisor not afraid of taxes

Posted at 12:51 pm by Jerry Cornfield

Gov. Chris Gregoire has appointed Jeff Chapman, research director of the Washington State Budget and Policy Center, to fill a vacancy on her 16-member Council of Economic Advisors.

Chapman is an economist with the three-year-old policy center described on its Web site as an “independent, nonpartisan nonprofit organization” with a focus on developing “realistic reforms that state policymakers can put to work with a particular emphasis on low- and moderate-income residents.”

The center is known well for arguing for increasing revenues for government rather than cutting spending by it – the opposite view pushed by Republican state lawmakers and GOP gubernatorial candidate Dino Rossi.

This excerpt from a policy center publication in June:

The continuing projection of a significant deficit is a matter of public concern and a deliberate conversation about how to close the gap should begin in earnest. It is important to note, the problem is not one of spending; current budget figures are largely in line with past budgets as a share of the economy. Instead, changes to our revenue structure must be part of the discussion.

In February, amid concerns of declining revenues into state coffers, the center prepared this chart that included this statement:

Revenue increases are an appropriate response to „the expected deficit. Proposals for deep budget cuts are unwarranted given the steady level of public investment over the last decade and the importance of public investments to all Washingtonians.

It is unclear how much sway Chapman could have on the governor as she prepares her 2009-11 budget. The Council of Economic Advisors, created more than a decade ago, only meets four times a year. It is an interesting appointment at this time given the debate on budget priorities is an issue in the race for governor.

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