(WA) State's spending limit vs. politicians

Evergreen Freedom Foundation ^ | 11-18-04 | Jason Mercier

[truth49]

State's spending limit to be put to test in 2005

OLYMPIA,WA – Today the state's Expenditure Limit Committee adopted the I-601 spending levels for the 2005-07 budget. I-601, Washington's spending limit law, was enacted by voters in 1993 in response to rising taxes and out-of-control state spending. Including the state's 2003-05 estimated ending fund balance and 2005-07 forecasted revenue, the state is expected to have access to $256 million in excess of the legal spending limit. State officials have already expressed a desire to spend more that the limit would allow.

2005-07 I-601 spending limit: $25,107 million 2005-07 forecasted revenue: $24,722 million 2003-05 ending fund balance: $641 million Difference: $256 million

If state officials pursue the increases in state employee compensation (including K-12 teachers), additional pension contributions, and increased medical assistance costs they want, the state will have a $1.7 billion "deficit" in the 2005-07 budget. To even reach this level of "deficit" spending, however, politicians will have to once again tamper with, if not repeal, the taxpayers' I-601 spending limit. A billion dollar tax increase will also be necessary to fund all of the desired budget additions.

2005-07 desired expenditures: $26,432 million 2005-07 forecasted revenue: $24,722 million Difference: <$1,710 million>

2005-07 desired expenditures: $26,432 million 2005-07 I-601 limit $25,107 million Difference: <$1,325 million>

"Having just rejected a massive tax increase for education, it's not likely voters would be supportive of a billion dollar tax hike for state employee compensation increases," said Bob Williams, president of the Evergreen Freedom Foundation. "For I-601 to survive the pending legislative session, legislators must commit to a results-based budget and put taxpayers above special interests."

There is talk of another supplemental budget for the 2003-05 biennium totaling approximately $200 million. Earlier this year, legislators approved a $146 million supplemental spending increase. Governor Gary Locke's budget office just received a national award for its innovative priorities-based budget system, but Locke appears to be walking away from the model.

"Whatever happened to identifying priorities and living within our means?" asked Williams. "Without the benefit of performance audits, how can increased spending be justified?"

[secretagent]

Amend the WA constitution and get out of State education altogether. That will help.