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1. Get a Handle on State Employee Salaries & Benefits: Cancel automatic pay boosts (STEP increases) for all state employees, including teachers (saves $80 million in the 2011-13 biennium), and tie pay increases to performance.  Require state employees to contribute at least 25 percent of their health premiums (taxpayers will still pick up 85 percent under new proposals). Repeal Initiative 723 requiring teacher COLAs-an unproven benefit which the state can no longer afford. Halt the pension system's fiscal hemorrhaging by replacing defined-benefit plans with defined-contribution plans.

2. Make Unemployment A Less Attractive Option: Washington has one of the most generous Unemployment Insurance (UI) systems in the nation, with weekly benefit payouts averaging $369.10 compared to the national average of $295.97. But high benefits have hurt Washington's battered business community, which is expecting a 36 percent average UI tax increase in 2011 if nothing is done. The state should adjust weekly benefits closer to the national average, giving the unemployed a greater incentive to return to work, and giving employers a break.

3. Cut Red Tape and Bureaucracy to Save Money and Get Results: Red tape often prevents state agencies from getting things done. Charter agencies, on the other hand, are freed from many bureaucratic regulations in order to achieve better outcomes for citizens, such as streamlining the permit process. They agree to be accountable for measurable results on a reduced budget. For example, Iowa's charter agency program has saved tens of millions of dollars. Why not here?

4. Get a Handle on Workers' Compensation Long-Term Disability Claims: Long-term disability claims are made by injured employees whose work-related injuries keep them from returning to work. These account for roughly 8 percent of all claims, yet add up to a whopping 85 percent of program costs. Washington currently has the highest rate of pensions awarded of any state in the nation. The state should evaluate its claims process and offer settlement options with an eye toward lowering costs.

5. Consult the Yellow Pages for Routine Government Services: The state should use a simple "Yellow Pages test" when considering whether to open a government service to competition. If experienced companies that do the same work can be found in the phone book, they should be invited to make a competitive bid. Odds are good they can offer identical or improved service at a lower price-in most cases, 10 to 20 percent lower. College dormitories, state printing services, accounting and janitorial services could all be opened up to competition to get taxpayers a better price.

6. Let the Private Sector Do Some Government Jobs: Government does certain things it doesn't need to do, like operating taxpayer-funded ferry and state park monopolies. Excessive overtime, paycheck padding, bloated salaries and an utter lack of accountability plague the ferry system. Private companies run ferry systems all over the world. Why not here? When the choice is between cutting or privatizing state parks, the choice is obvious.  It's time to privatize ferries and parks-and eliminate the fiscal headaches that accompany them.

7. Get Money the State is Owed at No Cost: Contingency-based recovery audits are a way for the state to collect money owed without costing taxpayers a dime. Once improper payments have been found and approved, the recovery audit firm helps collect the payments due. Only then is the recovery audit firm compensated with a percentage of actual collections. In Texas, recovery audits have so far discovered millions in savings, with a potential total of up to $200 million.
 
  8. Stop Allowing Prevailing Wage to Prevail Over Taxpayers' Wallets: Our state has a law that costs taxpayers millions extra for public construction projects. The law requires that workers be paid "prevailing wages" when hired for public works projects or maintenance of public buildings. That means many projects have to pay workers big city prices regardless of where the construction occurs. The Legislature should scrap this World War II-era law mandating excessive costs.
 
 9. Save Money With More Efficient K-12 Funding: Washington state is spending $13.4 billion on K-12 education in the current budget period. The state needs to use the power of competition to spend more wisely, by contracting out non-instructional endeavors-such as food service, janitorial, IT and housing-to private sector providers. Also, if more certified teachers move from administrative positions to the classroom, the state won't need to spend as much money-$908 million during the last biennium-reducing class size.
 
10. Spend Higher Education Tax Money More Wisely: Taxpayers should not foot the bill for students' ongoing careers in higher education. The state needs to connect money to required classes only, or give only as much money as is required to complete the requisite number of credits. In addition, the legislature should require institutions' budgets to be online. Also, lawmakers can ensure that credits are more easily transferrable between institutions, and that far fewer high school students accepted for admission have to take remedial courses before earning college credits.