Locke alludes to tax increase

Evergreen Freedom Foundation ^ | 11-30-04 | Jason Mercier

[truth49]

OLYMPIA,WA—At his budget press conference today, Governor Gary Locke hinted that a tax increase would be necessary to close the state's projected $1.8 billion budget "deficit." Locke's openness to a tax increase is a stark departure from his previous commitment to budgeting within the renowned Priorities of Government (POG) budget reform.

Claiming that it would be difficult to fund all the activities that the people expect from government under Washington's projected 2005-07 $1.5 billion revenue increase, Locke stated that tax increases could not be ruled out to close the gap with the desired $3.3 billion spending increase over the current budget (including an estimated $175 million 2005 supplemental budget).

Among the spending pressures contributing to the deficit: $502 million in cost of living increases for state employees (including K-12 teachers; I-732), $428 million increase in state employee pension expenses, $371 million increase in state employee health insurance expenses, and $237 million to fund the I-728 class size reduction measure. These expenses alone amount to $1.5 billion.

"Despite once again citing the numerous awards and accolades his budget reforms have received, Locke is clearly unwilling to fight for a true priority-based budget," said Bob Williams, president of the Evergreen Freedom Foundation. "Locke left little doubt that he will present two budgets, with the second leaving the next governor facing calls for a tax increase."

"If Locke is truly committed to priority-based budgeting, he will weigh the $3.3 billion in new spending against all other current spending and re-prioritize," said Williams. "Anything not purchased by definition would be a low priority."

Early this month, voters defeated, by a sixty percent margin, Initiative 884, which would have provided for a one cent increase in the sales tax to fully fund I-728 and I-732. These two measures are now responsible for $398 million of the projected 2005-07 budget "deficit" even though they were explicitly advertised in 2000 as not requiring a tax increase to fund.

[truth49]

See also: Notes on I-728 and I-732 http://www.effwa.org/press_releases/2003_04_11.php

[bushisdamanin04]

Funny that Gary "I'm-off-to-China" Locke announces this on the day that Rossi is certified the winner.

[sionnsar]

These two measures are now responsible for $398 million of the projected 2005-07 budget "deficit" even though they were explicitly advertised in 2000 as not requiring a tax increase to fund.

Golly gee...

[goldstategop]

He's leaving office. Where is this going? In a word, NOWHERE. The funny thing is in liberal WA State, voters have repeatedly voted to slash their taxes even while electing Democrats Governor.

[NormsRevenge]

.. it would be difficult to fund all the activities that the people expect from government ..

Tell that to the folks in California..

Just borrow, borrow,, borrow .. worked for aRnie ..

[RetiredArmy]

That is because all these mealy mouthed liberals speak the speak when in their group settings, but when it comes to giving out of their own pockets, they are like rabid dogs fighting. I see it every year here in our slimy liberal law firm. They fight over every penny for themselves, raking over the coals anyone else who did not bring in what they think they should have in business. They would cut their own mother's throat for a dime. Liberals are a total joke. They want and want for all their socialist programs as long as someone else, the evil rich?, are paying for it. As long as they have their own private own.

[Maigret]

Truly? Has Rossi been certified the winner? By how many and is Gregoire demanding recount?

[SZonian]

It looks like our weasels in Sacramento are up to these same tricks. Read an article in this weekends paper that talked about the $7-$10 billion deficit and how the only way to close the gap is to raise taxes.

Not once did those A-holes mention cutting spending to help close the gap. Arnie better get a good grip on those folks up there!

[churchillbuff]

Among the spending pressures contributing to the deficit: $502 million in cost of living increases for state employees (including K-12 teachers; I-732), $428 million increase in state employee pension expenses, $371 million increase in state employee health insurance expenses,"""

TRANSLATION: TAXPAYERS PAY MORE, SO STATE WORKERS CAN GET MORE GOODIES

[bushisdamanin04]

Yes, Sam Reed certified Rossi the winner today by 42 votes. Dummycraps have promised a recount in parts of King County only, which they have to pay for. If the limited recount changes the outcome, then there is a mandatory state-wide hand recount at taxpayer's expense.

Even numerous Democrats are uring Gregoire to concede, but she will not do so.

[Mr. K]

HEY- I GOT AN IDEA!!! HOW ABOUT CUTTING SPENDING???

[bushisdamanin04]

Yep, the left-wingers of Seattle overwhelmingly voted down the espresso tax. Too funny.

[lilylangtree]

"projected $1.8 billion budget "deficit."

WWWHHHHAAAAATTTT!!!! In 2003 the state had $21 billion in revenues and $22 billion in expenditures. Did the state stop spending? OOOOOhhhhh nnnooo! In fact our esteemed (sarc) legislature passed a $23 billion budget with Locke overseeing. Then Locke had the nerve to publicly state numerous times (with his demoncRAT and pubby stateman following) that he and the legislature passed a good budget. A budget was passed without raising taxes. Well, Gary old boy, where in the h*ll did the $2 billion go--just a fiscal immaculate conception with a large drain, a**hole!

[michaelbfree]

note to EX-GOV Locke - eat Sh*t and die!!!

[JosefK]

I think you should also see: http://www.governor.wa.gov/speeches/speech-view.asp?SpeechSeq=637


Below's the most important part:

---

As we build our budget proposal, we are continuing to use the Priorities of Government process. This process examines everything we do as a state government. Then we prioritize the services that citizens want and need the most.

We took our budget process to the public last summer, holding public meetings in Spokane and Seattle. We looked closely at everything again this fall. And then I received a report from the Priorities of Government team, which we have provided to you today.

The Priorities of Government report isn’t the budget. But it helps us make budget decisions by informing us what the most important services are, and the consequences of not providing these services.

We will be telling you about our decisions in a couple of weeks. What we do know now is that our $1.6 billion problem threatens our ability to provide critical state services and puts our future at risk. This problem must be addressed.

More cuts are an option. We can take actions to increase revenue. Or we can take some combination of these steps. The state could borrow money, like some states have done.
It’s a bad idea – borrowing doesn’t solve the problem. What do you do next year and the following years to pay for services.

If we try to solve the $1.6 billion shortfall through cuts alone, it would be difficult to restore the provisions of initiatives 732 -- teacher salaries -- and 728 -- class-size reductions. Funding to help struggling students from low-income families could be lost.
Programs for gifted students could be lost.

In our state colleges and universities, access to a college education would be limited. And the costs of a college education for those who did get accepted would go up.

It's likely that up to 40,000 low-income adults would lose health care coverage under the Basic Health Plan. The safety net for people without health insurance could disappear.

And it might mean no more low cost dental care for low income adults.

Just to give you some perspective, the entire 4-year university system has a budget of $1.6 billion! And completely eliminating the entire Department of Corrections would only save $1.4 billion! These are clearly not possibilities, but they give you a sense of the enormity of the problem the state is facing.

These are some incredibly hard choices to make. We will be considering the many options over the following weeks as we make our final decisions.

My main reason in sharing these thoughts with you today is to alert the people of the state to a problem that must be solved for the long term. The fact is we face a structural deficit in how to pay for the current level of services even with a growing and recovering economy. Because costs of certain basic federally required programs are growing faster than inflation and revenues.

The expectations that all of us have of state government to provide basic, necessary and much demanded services are significantly greater than we can afford. And they will continue to increase. Even with an improving economy we will continue to face deficits.

---

Well, note the last sentence. We're going to have to list things to cut... or swallow a mega-tax-hike...

I also think you all should see the prophetic "Arguements For and Against Initiative 728" ( http://www.secstate.wa.gov/elections/2000/i728_arguements.aspx ) and "Arguements For and Against Initiative 732" ( http://www.secstate.wa.gov/elections/2000/i732_arguements.aspx )

Thanks to my hero Marsha for doing that 2K3 press release hyperlinking to 'em!

Josef

[JosefK]

I concur...