Deficit growing at a rate of $2,188 per minute, $131,250 per hour, $3,150,000 per day.* Governor Locke’s response: he sends emails to state workers and issues non-binding directives asking them to cut their spending. Legislature’s response: lawmakers talk about tax increases and wait for the governor to do something.
* Calculated by dividing the $2.27 billion dollar deficit into 730 days of the biennium.
At current rate of spending, state will run out of money on April 19, 2003.* The state is currently budgeted to spend $1.82 billion more than its revenue forecast. Recent forecasts project an additional cost of $450 million for new caseloads, which means a total deficit of $2.27 billion this biennium.
* Based on EFF estimate. Our estimate is based on official forecasts.
If spending continues at current rate, state projected to start next biennium with $443 million deficit.
2001-03
2003-05
Projected Revenue
$20,962 million
$22,790 million
Projected Expenditures
$23,233 million
????
Shortage
[$2,271 million]
Governor’s inaction makes necessary cuts far deeper.* Each day, as the state continues to spend at current levels, the amount of money left from which Governor Locke can cut to make up for the $2.27 billion shortage becomes smaller.
If the governor acts today . . .
March 1, 2002 - 14.7% cut required
If he waits . . .
May 1, 2002 - 16.9% cut required
July 1, 2002 - 19.7% cut required
* Percentages based on EFF estimates. Our estimates are based on official forecasts.
State law requires governor to order immediate across-the-board cuts when there is a projected or actual cash deficit. State Treasurer Mike Murphy announced on February 19, 2002, that our state’s General Fund is currently $812 million in the red. He projected that if no action is taken the cash deficit will reach more than $2 billion by November, and grow even higher by April of 2003.
Our state is expected to suffer a recession-related economic downturn until 2004-05, meaning problems must be solved now. There is no fairy godmother in sight!
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]?"