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Washington State deficit growing at a rate of $2,188 per
minute, $131,250 per hour, $3,150,000 per day.* STATE BUDGET HEADLINES March 1, 2002 ---------------------------------- Deficit growing at a rate of $2,188 per minute, $131,250 per hour, $3,150,000 per day.* Governor Locke's response: he sends emails to state workers and issues non-binding directives asking them to cut their spending. Legislature's response: lawmakers talk about tax increases and wait for the governor to do something. * Calculated by dividing the $2.27 billion dollar deficit into 730 days of the biennium. ---------------------------------- At current rate of spending, state will run out of money on April 19, 2003.* The state is currently budgeted to spend $1.82 billion more than its revenue forecast. Recent forecasts project an additional cost of $450 million for new caseloads, which means a total deficit of $2.27 billion this biennium. * Based on EFF estimate. Our estimate is based on official forecasts. ---------------------------------- If spending continues at current rate, state projected to start next biennium with $443 million deficit. 2001-03 2003-05 Projected Revenue $20,962 million $22,790 million Projected Expenditures $23,233 million* -----> $23,233 million** Shortage [$2,271 million] [$443 million] * This is the approved 2001-03 operating budget plus Forecast Council's 11/14/02 and 02/20/02 forecasted caseload increases. ** Assumes spending level stays the same as 2001-03 biennium. ---------------------------------- Governor's inaction makes necessary cuts far deeper.* Each day, as the state continues to spend at current levels, the amount of money left from which Governor Locke can cut to make up for the $2.27 billion shortage becomes smaller. If the governor acts today . . . March 1, 2002 - 14.7% cut required If he waits . . . May 1, 2002 - 16.9% cut required July 1, 2002 - 19.7% cut required * Percentages based on EFF estimates. Our estimates are based on official forecasts. ---------------------------------- State law requires governor to order immediate across-the-board cuts when there is a projected or actual cash deficit. State Treasurer Mike Murphy announced on February 19, 2002, that our state's General Fund is currently $812 million in the red. He projected that if no action is taken the cash deficit will reach more than $2 billion by November, and grow even higher by April of 2003. You can read the law for yourself. It's short and quite clear: <http://www.effwa.org/deficit.pdf> or RCW 43.88.110(8), RCW 43.88.050, RCW 43.88.260, RCW 43.88.270. ---------------------------------- Our state is expected to suffer a recession-related economic downturn until 2004-05, meaning problems must be solved now. There is no fairy godmother in sight! Additional information: http://effwa@effwa.org/budget.pdf Contact: Marsha Richards, Communications Director |
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