Governor Gregoire, who last December proposed closing the state budget gap with all cuts and no new taxes, says the  economy has since slid so much that it makes sense for lawmakers to be “looking at any and every option” for a possible tax package to take to the statewide ballot.

At a news conference at the Capitol Monday, her no-new-taxes position seemed to thaw a bit. She said it makes sense for the Legislature to at least consider new revenue since the nearly $9 billion gap is so enormous. She said she can’t bless the actual plan because “there is no `it’ ” yet to respond to.  She seemed to rule out supporting higher property or business and occupation taxes and warned that the state’s third major tax, the sales tax, even the tax on smokes and other “sins”, might not produce all that much if consumers remain hunkered down and not spending. 

Gregoire says she likes the idea of the Legislature looking over the options, and held open the possibility of campaigning for the package. She gave no parameters for how large the package could be, but presumably still wants the bulk of the gap to be closed with spending cuts, pay freezes, initiative spending freezes, fund-grabs and so forth.

Gregoire continued to promote the idea of a separate bond measure for schools on the statewide ballot, including “green” retrofitting of existing schools.

Lawmakers roll out their budgets later this week or next. Then the T-word apparently will heard.