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PRESS RELEASE

November 30, 2004

Locke alludes to tax increase

OLYMPIA—At 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


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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