April 25, 2009

Dear friends and neighbors,

Tomorrow is the final day of the 2009 legislative session which began in January. We have just finished voting on the final conference operating, capital and transportation budgets.

When I delivered the Republican response to the governor's State of the State address on Jan. 14, I said: "We begin [this legislative session] by agreeing with one important principle in the governor's budget proposal – NO tax or fee increases. It's time to eliminate the option of raising taxes- take it entirely off the table. You the taxpayers and employers did not create this crisis and you should not be expected to bail out state government."

During session, the majority party floated the idea of several tax proposals: an income tax for all Washington taxpayers; an income tax for those making $500,000 annually; an income tax for those making $250,000 annually, and a three-tenths sales tax increase to be on the November ballot so that citizens can "buy back" cuts they've made in health care. At one point, the sponsor of the sales tax increase bill said “people will die” if taxes aren’t increased.

Now they have backed off from their tax increase proposals because of public backlash. Perhaps the reality that 340,000 people are out of work in Washington and cannot afford increased taxes is finally sinking in?

Budgeting is all about setting the right priorities. The final operating budget plan makes promises that can’t be kept, ties the hands of future legislators, and sets us up for another massive deficit when the next budget is written in 2011. In fact, some people estimate our state could have a $10 billion shortfall in the next budget cycle.

I am especially concerned with cuts to school levy equalization funds, of which many of our local school districts rely to provide the same quality education as the more affluent school districts in the state. See my press release on this issue.

We didn't have to be in such a deep budget crisis if only the Legislature had been more prudent in its spending practices. In this week's article, I discuss ways we can avoid getting into a deeper mess in the future.

As always, I welcome your comments. Please click here to contact my office through our e-mail service.

It is an honor to serve you.

Sincerely,

Dan Kristiansen
State Representative
39th Legislative District

P.S. - When e-mailing me, please do not hit reply to this e-mail as I will not receive the response. Instead, I invite you to click here and e-mail me. Thank you!

To avoid future budget crises, Legislature must change old habits
By Rep. Dan Kristiansen

Two years ago, Washington had a $2 billion budget surplus. Although revenues were up, the Legislature approved a 2007-09 operating budget that spent $1.3 billion more than the state expected to take in. That irresponsible overspending of $3.3 billion, combined with an economic recession, is what sent Washington spiraling into a deep budget crisis this year.

Before the Legislature adjourns this Sunday, it must adopt a new two-year operating budget. You would think lawmakers would avoid making the same mistakes that got us into this mess. Unfortunately, this latest budget proposal would continue to INCREASE spending. It would also rely on one-time money from the federal stimulus package and other state funds to pay for ongoing programs. That's $5 billion the state will not have in two years. The Legislature is essentially punting its problems into the future.

To avoid future deficits, the Legislature must begin to change its spending habits. My House Republican colleagues and I have proposed several ways to do this:

• House Bill 1458 would require a fiscal note to be established before final passage of any bill before the Washington State Legislature.

When voting, lawmakers frequently have no idea how much a bill will cost the taxpayers. We should know the price tag before final passage.

• House Bill 1654 would establish a five-day waiting period before either legislative body could vote on the operating, capital or transportation budgets.

Frequently, we've had to vote on a budget bill that is still warm from the copy machine. The public's trust of government is undermined when legislators have no idea what spending items are included.

• House Bill 1655 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.

• House Bill 2228 would prohibit the governor or the Legislature from proposing an operating budget deemed unsustainable in the ensuing biennium, or the following biennium after that.

This measure would help to prevent future deficits by making sure we are looking long-term at the budget and incoming revenue.

• House Joint Resolution 4207 would limit spending to an increase in the state's population and inflation growth over the previous three years.

Overspending is what got Washington in this budget crisis. We need to reinstate the spending limit voters approved 16 years ago that for many years protected taxpayers.

• House Joint Resolution 4209 would require exceptional state revenue to be deposited into the state's "rainy day fund" during good economic times.

If we had put more money away during good times, this year's budget crisis would not have been as severe.

Finally, we must commit to a no-new-taxes budget of priorities that make a clear distinction between what the Legislature wants and what taxpayers can afford. Individuals and families must do more with less. State government should do the same. Raising taxes would only prolong this economic recession. As Winston Churchill noted, "For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."

Solving this crisis requires making essential changes in budgeting, setting priorities, and forcing the state to live within its means - now and in the future.

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