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State Representative Gary Alexander - 20th Legislative District

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FOR IMMEDIATE RELEASE

Jan. 19, 2007

 


Setting aside budget surplus in a rainy day account will protect taxpayers, say Republican lawmakers

Implementing a constitutional amendment requiring a protected reserve fund is the smart thing to do for Washington taxpayers, say Reps. Glenn Anderson and Gary Alexander, who today announced their legislation proposing the creation of a constitutional amendment to create a secure reserve account.

The measures, House Bill 1467 and House Joint Resolution 4207, together will constitutionally require lawmakers to set aside a portion of the state’s revenue into a secure reserve account, commonly called a “rainy day” fund.

“Voters must be able to trust that legislators and the governor can and will live within a realistic budget,” said Anderson, R-Fall City. “The people of our state won’t tolerate big spending now that squanders their hard-earned money and leads us from prince to pauper in just two years. We would be reckless if we don’t protect some of our $2 billion surplus now and constitutionally require a rainy-day fund that stabilizes our state budget.”

“Republicans in the Legislature have been promoting the wisdom of a constitutional rainy day fund for some time, as a cornerstone of our ‘Truth in Budgeting’ plan and as a way to stabilize funding for state priorities such as K-12 education. The governor recently joined us in endorsing the idea, but can she convince the legislators from her party to take this significant step toward getting the state off of the budget rollercoaster? We’ll know sometime in the next 13 weeks,” said Alexander, R-Thurston County, who is chief budget negotiator for House Republicans.

The House Republicans’ proposal:

· Requires that 3 percent of the forecasted General Fund-State revenue for each year be transferred to the account. The governor’s proposal calls for a 1 percent deposit annually.

· Allows for fewer excuses to remove the money from the account. The House Republican proposal makes it clear that only in the event that revenue forecasts for any fiscal year fall below 1 percent, adjusted for inflation, can the fund be tapped by a majority vote of the House and Senate.

· Requires a three-fifths vote of the House and Senate to appropriate money from the account should a declaration of emergency be authorized by the governor.

Of concern to Republican legislators are the loopholes in the governor’s proposed rainy-day account. The ability to move funds out of the account, said Anderson, is too easy. If the public takes a close look at the governor’s proposal, they would see a litany of reasons and rationale to spend the reserve for events that qualify as a “partly cloudy day” not a true “rainy day.”

“We believe we’ve put some solid safeguards up in our proposals,” said Anderson. “The public expects the Legislature to be good stewards of their tax dollars.”

The 105-day 2007 legislative session began Jan. 8 and is scheduled to end April 22

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