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Supplemental operating
budget adds $306 million in new state spending
Statement from Rep. Doug Ericksen, R-Ferndale
"We have nonpartisan
Senate staff saying our state will face a 2.4 billion dollar budget
shortfall next year. Today, the governor and majority party decided to
add to this looming crisis instead of taking steps to prepare for it.
"Washington's economy
continues to perform well, but our housing market has normalized. This
has exposed flawed state budgeting practices. We don't have a revenue
problem in Olympia - we have a spending problem.
"If we can't control
spending in Olympia, we can't control taxes. It's that simple."
Supplemental operating budget facts:
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Including
appropriations in other legislation, it adds $306 million to the
2007-09 state operating budget.
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It increases the Near
General Fund spending growth rate to 16.2 percent for the biennium,
with a revenue growth rate of 7.3 percent.
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It increases total
Near General Fund spending for the 2007-09 biennium to $33.7
billion, with only $32 billion of projected revenue – $1.7 billion
out of balance.
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Reserves are padded by
grabbing one-time money and moving it to the General Fund, while
keeping the spending level high. There is $101 million in transfers
to the General Fund, with more than half from the State Convention
and Trade Center accounts.
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It was released at
10:00 a.m. on Wednesday, and voted off the House floor just one day
later. This allowed little time for state lawmakers and the public
to view it.
Other
state spending facts:
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Nonpartisan Senate
Ways and Means staff released a four-year outlook in February
showing projected budget shortfalls of $2.4 billion in 2009-11, and
over $5 billion in 2011-13.
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State spending has
increased by over 33 percent, $8.4 billion, in the last five years.
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The 2007-09 state
operating budget includes $2.2 billion in new and expanded state
programs, with no significant reductions or savings in state
government except reductions to employee pension and health
benefits, and WASL-related programs.
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The Economic and
Revenue Forecast Council’s February forecast showed decreasing
revenues over what was expected in November by $423.4 million.
# # #
For more information, contact:
John
Handy, Assistant Director: (360) 786-5758
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