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Supplemental operating
budget sets state up for tax increases
Statement from Rep. Gary Alexander, ranking
Republican on the House Appropriations Committee
“Nonpartisan Senate staff
is saying we could face a 2.4 billion dollar budget shortfall next year.
I think this is the minimum deficit we will face. This supplemental
operating budget ignores this reality and continues a trend of excessive
state spending. It’s misleading for the governor and majority party to
say there’s a healthy reserve when we all know what is directly ahead of
us.
“Olympia does not have a revenue problem – it has a spending problem.
Adding 306 million dollars in new state spending only deepens this
problem further. The bipartisan, fiscal discipline shown in 2003
continues to be abandoned in Olympia today.
“Republicans are often asked, ‘What would you cut?’ To start, we would
not have increased state spending by over 33 percent and 8.4 billion
dollars. A more appropriate question for the governor and majority party
might be, ‘With general fund expenditures exceeding revenues by 1.7
billion dollars – what taxes are you going to increase?’ That’s the path
we’re heading down.”
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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