OLYMPIAAt his budget press conference today, Governor
Gary Locke hinted that a tax increase would be necessary to close the state's
projected
$1.8 billion budget "deficit." Locke's openness to a tax increase
is a stark departure from his previous commitment to budgeting within the
renowned Priorities of Government (POG) budget reform.
Claiming that it would be difficult to fund all the activities that the
people expect from government under Washington's projected 2005-07 $1.5
billion revenue increase, Locke stated that tax increases could
not be ruled out to close the gap with the desired $3.3 billion spending
increase over the current budget (including an estimated $175 million
2005 supplemental budget).
Among the spending pressures contributing to the deficit: $502 million
in cost of living increases for state employees (including K-12 teachers;
I-732), $428 million increase in state employee pension expenses, $371 million
increase in state employee health insurance expenses, and $237 million to
fund the I-728 class size reduction measure. These expenses alone amount
to $1.5 billion.
"Despite once again citing the numerous awards and accolades his budget
reforms have received, Locke is clearly unwilling to fight for a true priority-based
budget," said Bob Williams, president of the Evergreen Freedom Foundation.
"Locke left little doubt that he will present two budgets, with the
second leaving the next governor facing calls for a tax increase."
"If Locke is truly committed to priority-based budgeting, he will
weigh the $3.3 billion in new spending against all other current spending
and re-prioritize," said Williams. "Anything not purchased by
definition would be a low priority."
Early this month, voters defeated, by a sixty percent margin, Initiative
884, which would have provided for a one cent increase in the sales tax
to fully fund I-728 and I-732. These two measures are now responsible for
$398 million of the projected 2005-07 budget "deficit" even though
they were explicitly
advertised in 2000 as not requiring a tax increase to fund.
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]?"