Along with most states, Washington’s financial challenges are daunting. In the past two years, $5.1 billion of spending has been cut from the state budget and fiscal trends indicate that an additional $3 billion will have to be cut in the 2011-2013 biennial budget and another $8-9 billion the following biennium.

To get a handle on how to best approach the serious decisions that need to be made, the Governor has implemented several key changes to the budget planning process which was outlined at three “Transforming Washington’s Budget” hearings held during the past week in a half. Before inviting testimony, the Governor’s staff reviewed the state budget and actions taken to solve the budget gaps. These actions affected all programs in state government but fell most heavily on health and human services, higher education and K-12 education.

Moving forward, the state will use a “zero-based budgeting” process which requires each agency to submit a budget proposal that justifies each program (rather than assumes current funding levels) with the help of eight questions. The questions focus on whether a service is essential, state government needs to provide it, and if it operates most efficiently and effectively. To get a fresh perspective, the Governor has appointed a panel of leaders to evaluate all agency/program budget proposals and to assist in the budget creation process.

So far, interest groups have showed up en masse at each public hearing to advocate for their particular cause. While this makes sense given the economic climate we find ourselves in, Mike Doherty, an elected Clallam County official appointed to the Governor’s Committee said it would be more helpful for people to report on cost-effective projects and management ideas such as specific performance measures that would show whether money is being spent effectively.

The last hearing is scheduled in Spokane on Thursday. Individuals can also comment in writing or online at the governor’s website which asks for ideas;  the site received more than 600 comments in its first day.