OLYMPIA 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?"
Contact: Jason
Mercier | Budget Research Analyst | 360.956.3482
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]?"