|
Orcutt says jump in state
revenue
shows wisdom of avoiding tax hikes
Rep. Ed Orcutt
said today’s improved forecast for state revenue collections proves the
Legislature was right to avoid a general tax increase in 2003, and
suggested the forecast should serve as a warning against raising taxes
to balance the 2005-07 budget.
“I see two messages from
today’s forecast. First, holding the line on across-the-board taxes two
years ago helped our economy improve, and revenue is up as a result.
Second, we need to continue holding the line on taxes if we want to keep
the economy going in a positive direction and producing additional
revenue that can go to fund services for our citizens. Let’s keep doing
what we’re doing, because it’s working,” said Orcutt, R-Kalama.
Orcutt, lead Republican member of the House Finance Committee, was
appointed this week to the state Economic and Revenue Forecast Council.
The council met today to approve the forecast for the first quarter of
2005 and publicly discuss what the numbers mean.
Since the November 2004
forecast, revenue expected for the remainder of the 2003-05 biennium –
which ends June 30 – is up $301.1 million. The March forecast for
2005-07 is up $438.3 million since November, bringing the total revenue
bump today to $739.4 million.
“This certainly weakens
arguments for a tax increase. It’s clear to me that we need to keep
spending in line with the available revenue – it is the smart way to
go,” said Orcutt.
Orcutt noted some
lawmakers are laying the groundwork for tax increases in both chambers
of the Legislature. The state Senate voted this week to do away with the
need for a two-thirds legislative majority to raise taxes, and the House
passed legislation Wednesday that would allow a sizable property tax
increase. Three state senators have introduced legislation proposing a
state income tax, and the chairman of the House Finance Committee
recently hosted a work session exploring two different state income tax
schemes.
Gov. Gregoire is expected
to issue her proposed budget Monday, based on today’s revenue forecast,
and legislative budget-writers will follow suit – hopefully in time for
the Legislature to negotiate and adopt a budget before the April 24
conclusion of the 2005 session, Orcutt said.
“With one party
controlling all three parts of the lawmaking process, there’s no excuse
for the legislative session to run overtime and cost taxpayers more
money each day. And after seeing the proof today that avoiding tax
increases is good for our state’s economy, I see no excuse for a tax
hike,” said Orcutt. “The new forecast is a reminder that what we do
about the budget this session is going to affect future budgets – so we
need to keep doing what we know has worked since 2003.”
# # #
For more information, contact:
Brendon Wold, Public
Information Officer: (360) 786-7698
|