Some talk isn’t cheap

Governor releases 2001-03 budget proposal

Governor Locke’s new $22,725,900,000 budget proposal (General Fund State), released this morning, is a nice public relations piece, but it doesn’t measure up to state law. The law requires the governor to submit a budget balanced within existing revenue. While he is free to propose an increase in spending, this proposal cannot take the place of a legally balanced budget. Locke’s new budget—an 9% increase in expenditures over the last biennium—is based on shaky budget projections, not existing revenue.

"Skirting the law isn’t the only problem with the governor’s budget," said Lynn Harsh, Executive Director for the Evergreen Freedom Foundation. "The governor’s new proposal claims he will get tough on government agencies by forcing them to adhere to performance standards. These standards were already law during his entire first administration, a fact he has conveniently ignored. What makes us think his second administration will be any different?"

Other effects of the governor’s proposed budget include:

Revenue increases of $113 million are presumed from a more effective and efficient Department of Revenue. There are no indications this will actually occur.

I-601 spending limits have been broken again. The governor’s budget breaches the limit by at least $404 million. This is in addition to the $479 million approved by voters in Initiative 732.

Locke’s budget reduces the Emergency Reserve Fund by nearly $500 million, leaving only $589.4 million, an imprudently low amount.

COLA’s are taken permanently off-budget, meaning they will not be factored into I-601 accountability measures now or in the future.

The Evergreen Freedom Foundation has a few questions:

Regarding the $308 million transferred from the tobacco settlement account to health services, how will this money be spent? How will it be tracked?

What will Locke do about the $1 billion shortfall in the health care budget?

Locke refused to authorize an independent, outside investigation of the Department of Transportation last year, even when his top law enforcement officials requested one. Why should citizens consent to tax increases for transportation before a performance audit has been completed?

Locke’s budget assumes caseload increases in K-12 and welfare. In reality, both departments anticipate decreases. How does he explain this?

Locke promised to decrease FTEs (full-time equivalent) by 1,500 by June 30, 2001. Where does he provide for this in his new budget?

"All the governor’s talk about getting tough on agencies means nothing if he doesn’t identify benchmarks for performance and penalties for non-compliance," said Harsh. "This is not a taxpayer friendly budget."

Contact: Marsha Richards, Communications Director, (360) 956-3482

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