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Our state budget is about
more than just the next two years
By Rep. Jay Rodne
Each odd-numbered year,
such as 2005, legislators must pass a state budget that spans the
following two years.
This budget is derived
from your tax dollars or other revenues and pays for public schools,
higher education, human services, government and judicial operations,
natural resources, and other special appropriations.
By some estimates, our
budget will face a $2 billion “shortfall” in 2005-07.
This leaves legislators
with essentially two options: raise taxes, as some Democrats are
signaling; or, consider structural reforms that improve the delivery of
state services and reduce costs in the process.
I support structural reforms.
Without reforms, we’ll
continue to be at the mercy of markets and expenditures that run astray
and likely have shortfalls every budget cycle. When this occurs, there
will always be calls for tax increases in an attempt to fix the problem.
This is simply not
sustainable in the long run.
Let’s take a look at our
rapidly increasing health care costs. Should legislators continue to
raise taxes to accommodate these costs? Or, should they enact reforms
that will help control costs and inflation?
I support reforms that will help us in the long run, including: a
cost-benefit analysis of the state’s 47 health coverage mandates,
medical malpractice reform, allowing for health savings accounts, and
focusing on other drivers of health care costs.
State government budgeting
is really not much different from what families do – just on a larger
scale. Yet, government is not subject to the same economic realities
families are.
Say, for instance, a family encounters financial problems. That family
will likely have to examine its expenses closely and find places to save
in its budget in order to pay the bills.
Government can simply
raise taxes.
Can you imagine going to
your neighbors each time you’re short on money for the bills?
Democratic leaders in the state Senate and House are sending strong
signals that a tax increase may be coming. And, despite her campaign
promise to the contrary, our governor is keeping the tax option on the
table.
This is the wrong course
to take.
An important part of being
a legislator is listening to constituents. The people of this state
collectively said “no new taxes” when voting on ballot initiatives last
November. With our economy slowly recovering, now would be the worst
time to raise taxes on families and job providers.
Instead, we should advance
reforms that get our economy going, such as: reining in regulatory taxes
in workers compensation and other programs; reforming the state’s
rulemaking process to ensure accountability within government agencies;
and extending tax incentives for start-ups and small employers to help
stimulate job growth.
This, in turn, will
generate more revenue needed to balance the budget and provide state
services.
Our budget problem is not
a new one. We faced a larger shortfall in 2003 when, fortunately, Senate
Ways and Means Committee Chairman Dino Rossi crafted a budget that made
government live within its means, without shifting the tax burden to
families and employers.
By balancing the 2003-05
budget in this way, we positioned our state for a quicker economic
recovery by making it more competitive for employers and keeping more
money in the pockets of citizens.
We need to build from
Dino’s blueprint. Our 2005-07 budget is not just about the next two
years – it’s about laying the foundation for our future. If we are going
to pass a budget that is sustainable, we need to:
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Prioritize state
spending;
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Address structural
problems in state government;
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Establish a statutory
spending limit; and
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Create a
constitutional rainy-day fund that will protect taxpayers during
economic downturns.
Let’s make sure
legislators are responsible, accountable, and forward-thinking with our
state budget and tax dollars.
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For more information, contact:
John
Handy, Assistant Director: (360) 786-5758
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