Deficit grows larger, but
your tax burden should not

On Thursday, the state's Economic and Revenue Forecast Council released the latest revenue forecast for the state. The news was not good. Based on the report, Washington can expect a decline in revenue of another $552 million, pushing the overall budget shortfall to nearly $9 billion for the 2009-11 biennium.

Although that's a very large figure, I believe we can and must balance the state's budget without increasing taxes. More than 330,000 people are out of work in Washington. We should not be asking them to bail out state government when many can't even afford to put groceries on the table.

As assistant ranking minority member on the House Ways and Means Committee, I'm directly involved in the state budget. I support a no-new-taxes approach that incorporates a true priorities of government model. This means taking any tax increase on families and employers off the table, and fully funding education, public safety and the protection of our most vulnerable citizens. Transportation, including state ferries, is another priority, but it is handled in a separate budget.
 

Solutions for our state budget

We got into this budget mess primarily because of poor spending decisions by the Legislature. To prevent this from happening again, several bills have been proposed (many of which I introduced) that would hold budget spenders accountable and protect taxpayers. They include:

House Bill 1654 (co-sponsored by Rep. Bailey) would establish a period of public and legislative review for the state's major appropriations bills.  Dubbed "The Budget Sunshine Act," it would require a five-day waiting period before either legislative body could vote on the operating, capital or transportation budgets.

House Bill 1655 (co-sponsored by Rep. Bailey) would require the Legislature to adopt a balanced budget. While the governor is statutorily obligated to propose a balanced budget, there is currently no requirement for the Legislature to adopt one. This could lead to the practice of borrowing or issuing bonds in order to pay for daily, ongoing expenses.

House Bill 1657 (co-sponsored by Rep. Bailey) would establish that the paramount duty and first priority of the Legislature is to fund education. The bill would require that a separate education budget be enacted before any other general spending plan could be adopted.

House Bill 1902 (co-sponsored by Rep. Bailey) would simplify the budget language for the public by eliminating all of the dedicated accounts contained in the near general fund. These accounts, such as the health services account, the water quality account, and the education trust legacy account would be rolled into the general fund.

House Bill 2228 (prime sponsored by Rep. Bailey) would prohibit the governor or the Legislature from proposing an operating budget deemed unsustainable in the ensuing biennium, or the following biennium.

House Joint Resolution 4207 (co-sponsored by Rep. Bailey) would establish a state spending limit for the fiscal year beginning July 1, 2010.  The fiscal limit mirrors the original language found in the voter-approved Initiative 601 by limiting expenditures to an increase in the state's population and inflation growth over the previous three years.

House Joint Resolution 4209 (prime sponsored by Rep. Bailey) would require exceptional state revenue to be deposited into the state's "rainy day fund" during good economic times.

We worked from early morning into late evening approaching that deadline. The final tally: 429 bills passed the House, while 359 passed the Senate. While this sounds like many, I am concerned that as of 71 days into the 105-day session, the Legislature still hasn't addressed the most important reason we are here: the budget and economy.
 

Solutions for our state economy

One of my higher priorities as your state representative is to find ways to help employers so they can weather this economic storm, keep employees on their payrolls and prepare for growth in the future.

Our state economic and budget problems offer us an opportunity to finally address the concerns of employers. First, Washington should consider lowering tax rates, making its business and occupation (B&O) tax system easier for employers to navigate, and finding new incentives for employers.

Second, we must not allow any existing tax incentives for employers to expire or be terminated. Many of these incentives are important parts of business plans and have paved the way for job growth.

Third, our state must reform its unemployment insurance and workers’ compensation systems. Employers still face too many costs and regulatory burdens with these systems.

Above all, state lawmakers must control state government spending. If we can do this, we can control taxes on families and employers. More money in the pockets of people and businesses will translate into economic growth and more revenue to fund priorities of state government.

You can click here to learn more about what I feel we can do to help employers in our state to preserve and create jobs.

'Coffee talks' provide informative feedback
 

Here's what I heard:

People are very concerned about our state economy and jobs.
Commuters and business leaders want to know what the future of our ferry system is for the district.
Folks want to know why our state's budget is in such a mess and what will be done to address the problem.  

View my video updates
 

Mark your calendars for a tele-town hall
 

I'm interested in hearing from you and discussing the issues you care about most.

The event will start at 7 p.m. Please call in, toll free, at 1-877-229-8493 (enter PIN 13521). I hope you can join in!