PRESS RELEASE

January 27, 2005

House poised to act on performance audit bill

OLYMPIA—As early as tomorrow, the House may vote on a bill to authorize performance audits of state government. As currently drafted, however, that bill (HB 1064) falls short of meeting the necessary standards to ensure that performance audits are independently and comprehensively conducted by the people's state auditor.

Hoping to seize on the current opportunity, the state auditor's office has suggested an amendment to HB 1064, which addresses the bill's current shortcomings. The state auditor's amendment surpasses the language provided to legislators in the Evergreen Freedom Foundation's performance audit pledge. Fifty-three Representatives are signers of EFF's performance audit pledge. The preamble to the EFF pledge reads in-part:

Whereas the citizens of Washington state realize achieving efficient, effective and economical operation of state government requires transparency and accountability for tax dollars spent, I pledge to support independent comprehensive performance audits of state agencies.

The scope of performance audits should be established by the elected state auditor, not an unelected group of citizens appointed by the governor and legislature. The auditor should forward findings to the legislature each year, and the legislature should, in turn, annually report on the status of its implementation of the auditor's recommendations.

The state auditor's amendment to HB 1064:

• authorizes the state auditor to conduct independent and comprehensive performance audits and allows the state auditor alone to set the audit scope;

• creates a citizen advisory board to provide input to the state auditor, but does not grant that board veto power over audit scopes or areas for review;

• requires the state auditor make the final performance audit reports available to the public and post the reports on the internet (online);

• authorizes the state auditor to conduct performance audits of local governments using local funds if a local government requests such a review,

• requires two one-hundredths of one percent of the state's total general fund state budget each biennium be set aside to fund the performance audits initiated by the state auditor (approximately $5 million for the 2005-07 biennium); and

• does not sunset the performance audit authorization.

"Legislators should not fear independent and comprehensive performance audits of state government," said Jason Mercier, budget analyst for the Evergreen Freedom Foundation. "The elected state auditor should not have to get permission from an unelected group of citizens in order to do the job we hired him to do."

Additional Information
EFF performance audit pledge signers in the House: Representatives Ahern, Anderson, Appleton, Armstrong, Buck, Buri, Campbell, Chase, Chopp, Clibborn, Condotta, Crouse, Curtis, DeBolt, Dunn, Dunshee, Ericks, Ericksen, Haler, Hinkle, Holmquist, Hunter, Kilmer, Kretz, Kristiansen, Lantz, McCoy, McCune, McDonald, Miloscia, Moeller, Morrell, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Priest, Roach, Roberts, Rodne, Schindler, Sells, Serben, Shabro, Strow, Sullivan, Talcott, Tom, Wallace, Walsh, Williams and Woods.

EFF performance audit pledge signers in the Senate: Senators Benson, Benton, Carrell, Delvin, Esser, Honeyford, Kastama, McCaslin, Mulliken, Parlette, Rasmussen, Roach, Schoesler, Sheldon, Stevens, Swecker and Zarelli.

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