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PRESS CONFERENCE
February 25, 2002

Governor and Treasurer in violation of Budget and Accounting Act

EFF calls for immediate compliance to eliminate cash deficit

Violations of state law and apparent willful negligence on the part of Governor Gary Locke and State Treasurer Mike Murphy are a primary cause of the state’s current $812 million cash deficit (projected to climb to $2 billion by November) according to the Evergreen Freedom Foundation.

State law prohibits running a cash deficit in any state fund and requires the governor to make immediate across-the-board cuts to eliminate the shortfall as soon as he is aware of a projected or actual cash deficit. Presently, this means a 10% or greater cut in current expenditures.

Former Governor John Spellman avoided major cash shortages in 1981 by complying with the law and ordering a 10.1% across-the-board cut in spending. He then called a special session of the legislature, canceling the sweeping cuts when lawmakers responded and reduced the budget.

The requirements are part of a major 1981 revision of the state’s Budget and Accounting Act aimed at preventing major cash deficits like those faced in the late 70's and early 80's. The revisions, written with assistance from the Attorney General’s Office and the Office of Financial Management, were sponsored by Bob Williams, former state legislator and current president of EFF.

Governor Locke has been in violation of the law since at least August 2001, when the State Treasurer reported an actual cash deficit of $99 million in the state’s general fund.

“If Governor Locke had taken action when he was required to by state law, we would not be facing our current budget deficit,” said Williams. “But we’re not asking for penalties now, we’re asking for immediate compliance.”

Williams will be discussing the allegations and enforcement possibilities in more detail at a 15-minute press conference today, Tuesday, February 26th at 1:00pm in the Senate Rules Room (Legislative Building, ground floor).

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


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1 Part Honesty; 2 Parts Arrogance

At a March 23, 2005, House Appropriations hearing on a bill to gut the voter-approved I-601 spending limit, Rep. Jim McIntire (D) asked a supporter of I-601’s two-third supermajority requirement for the legislature to raise taxes the following question:

"Can you name a time when we [legislators] have actually not just set it [supermajority requirement] aside by majority vote? I mean, this is in many respects a procedural motion that has no bearing. It’s a statutory constraint that cannot constrain any legislature that chooses as a majority to set it aside . . . have we ever used a supermajority [to raise taxes]?"

- Rep. Jim McIntire (D - 46)
(360) 786-7886

Despite the arrogance of some state officials, Washington's constitution is clear: "All political power is inherent in the people..."

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