March 26, 2007

House budget falls short on priorities, puts taxpayers at risk
39th District lawmakers opposed to Democrat spending plan

House Democrat spending priorities are out of touch with the public, say Reps. Kirk Pearson and Dan Kristiansen. The 39th District Republicans today voted against the  state operating budget written by House Democrats, which would spend all of the state treasury's anticipated $2 billion surplus only to create an equal deficit in a few years.

“I’m concerned that this budget spends $2.2 billion on new policy additions, but couldn’t find any efficiency or cuts in existing state programs and it didn’t address our state’s unfunded pension liability,” said Pearson, R-Monroe. “This budget breaks the promise we made to employees. It makes me wonder why budget writers would add more than three thousand new state employees when we’re not taking care of the ones we have now.”

Pearson added the House budget passed today amounts to saying government is running like a well-oiled machine and doesn’t need a single repair. “I find that hard to believe, particularly when we’re spending more than thirty-three billion dollars, but can’t find a single cent to repay the pension system.”

House Republicans point out that the House operating budget (House Bill 1128) plus the two-year budget passed in 2005 would together represent a 33 percent – or $8.2 billion – increase in spending since Gov. Christine Gregoire entered office and Democrats took control of the budgeting process.

“The budget adopted today would spend 18 percent more than the corresponding budget adopted two years ago. That’s a tremendous rate of increase, especially in light of the 7.3 percent revenue growth projected for the next two years,” said Kristiansen, R-Snohomish.

“The majority party says it’s ‘betting’ on the economy, in spite of the signals we’re seeing that growth is slowing. I’m not willing to bet the futures of our families and employers, particularly when this budget doesn’t even include a rainy day fund to protect taxpayers.”

The unsustainability of the budget is apparent to an employer in Sedro-Woolley.

"If our family business budgeted like the state does, our family would be out of business very soon," said Connie Miller of Broadcast Tools, Inc. "Everyone knows that increasing spending 18 percent, when there is only a 9 percent increase in personal income, will quickly become a problem. Our state budget should be an example of good business, not bad math."

House Republicans believe it is irresponsible for the state to spend $1.3 billion more than it would takes in as revenue. According to the Office of Financial Management, an agency that provides fiscal services and policy support for the state, even with a strong economy the state’s operating budget would be in a deficit by 2010.

A new state operating budget is developed and adopted every two years, typically by the political party in power in Olympia. It funds K-12 public schools, human services, higher education, debt services, prisons/corrections, natural resources, special appropriations, and legislative, judicial and government operations.

The House Democrat budget also does not include a constitutional rainy day fund that would set a responsible amount of money aside and protect the state during economic downturns. The concept originated with Republicans.

The 105-day 2007 legislative session is scheduled to end April 22.

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Contact: Bobbi Cussins, Communications, (360) 786-7252
Eric Campbell, Communications, (360) 786-7720