Conventional thinking says there are only two ways to balance a budget: raise taxes or cut important services. It says budgeting is all about maintaining the status quo. But the governor and his budget director, Marty Brown, say there's a third approach: budgeting based on results, without raising taxes. They called this process a Priorities of Government (POG) review.

Used properly, their new budget model would lay the foundation for responsible state spending, not only now, but in the future—and not only here, but in any state.

Instead of blindly struggling to maintain the state's existing budget by adjusting for inflation and caseload increases, and cutting or taxing to make up the difference, Locke and Brown have wiped the chalkboard clean and started by answering four very basic questions:

1. How much money does the state have? (What is the existing and forecasted revenue?)

2. What does the state want to accomplish? (What are the essential services we must deliver to citizens?)

3. How will the state measure its progress in meeting those goals?

4. What is the most effective way to accomplish the state's goals with the money available?

• If a service/program is a core function, what level of government should provide it?

• How can services be provided efficiently and effectively?

• How can market forces and competition be introduced into core functions, assuring costs are controlled and quality enhanced?

After answering these questions, the governor prioritized agency activities and purchased the most important ones within existing revenue. The result was a balanced budget.

While the governor's model is good, he left out an important consideration: cutting important services isn't the only way to find cost savings. Necessary savings can also be found by providing services more efficiently and effectively (i.e. competitive bidding) and by instituting tough performance expectations.

Over the coming weeks, we will be releasing a series of policy highlighters encouraging legislators to ask tough questions about program delivery and practices. It is our hope that legislators will be able to use the governor's model to craft a responsible, balanced budget based on core governing functions.

POG Series:
Part 1: Washington Higher Education
Part 2: Corrections and Juvenile Rehabilitation
Part 3: Welfare and Children's Services

Budget Tools:
2003-05 proposed spending plan
Governor's priorities (PDF)
OFM publications
Performance audits (State Auditor)

Agency activities and priorities: (PDFs)
1 (Bond Retirement and Interest, House of Representatives, Senate, JLARC, Leg Transportation Committee, LEAP, Office of State Actuary, Joint Legislative Systems Committee,Statute Law Committee, Supreme Court, State Law Library, Court of Appeals, Commission On Judicial Conduct, Office of Administrator for Courts, Office of Public Defense, Office of the Governor, Special Approp to the Governor, Office of Lieutenant Governor, Public Disclosure Commission, Office of the Secretary of State, Governor's Office of Indian Affairs, Comm on Asian Pacific Amer Affairs, Office of State Treasurer, Redistricting Commission, Office of State Auditor, Comm on Salaries Elected Officials, Office of Attorney General, Caseload Forecast Council, Dept of Financial Institutions)

2 (Community, Trade & Economic Development)

3 (Economic & Revenue Forecast Council, Office of Financial Management, Wash State Health Care Authority, Office of Administrative Hearings, Department of Personnel, State Lottery Commission, Washington State Gambling Comm, Wa State Comm On Hispanic Affairs, Human Rights Commission, Personnel Appeals Board, Department of Retirement Systems, State Investment Board, Public Printer, Department of Revenue, Board of Tax Appeals, Municipal Research Council, Off of Minority & Women's Business, Dept of General Administration, Department of Information Services, Office of Insurance Commissioner, State Board of Accountancy, Forensic Investigations Council)

4 (Washington Horse Racing Commission, Board of Indust Insurance Appeals, Liquor Control Board, Board of Pilotage Commissioners, Utilities and Transportation Comm, Board for Volunteer Firefighters, Washington State Patrol, Wa St Criminal Justice Train Comm, Wash Traffic Safety Commission)

5 (Department of Labor and Industries, Department of Licensing, Military Department, Indeterminate Sentence Review Board, Public Employment Relations Comm)

6 (Dept of Social and Health Services, Home Care Quality Authority, Department of Health, Department of Veterans Affairs, Department of Corrections, Dept of Services for the Blind)

7 (Sentencing Guidelines Commission, Higher Education Coordinating Board, Supt of Public Instruction, State School for the Blind, State School for the Deaf, Work Force Train & Educ Coord Board, University of Washington, Washington State University, Eastern Washington University, Central Washington University, The Evergreen State College, Spokane Intercollege R&T Institute, Western Washington University, Washington State Arts Commission, Washington State Historical Society, East Wash State Historical Society, Department of Transportation)

8 (County Road Administration Board, Transportation Improvement Board, Marine Employees' Commission, Transportation Commission, Freight Mobility Strategic Invest, Columbia River Gorge Commission, Department of Ecology, Wa Pollution Liab Insurance Program, State Parks and Recreation Comm, Interagency Comm for Outdoor Rec, Environmental Hearings Office, State Conservation Commission, Growth Management Hearings Board)

9 (Department of Fish and Wildlife, Department of Natural Resources, Department of Agriculture, Employment Security Department, State Convention and Trade Center, Community/Technical College System, Sundry Claims, Agency Loans, Contributions to Retirement Systems)

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org