Olympia, WA - 12/19/01 - Earlier today Governor Locke submitted his proposed 2002 supplemental budget to address the state's looming deficit. While good ideas are evident, the
Governor did not adequately address major budget drivers, and his
appropriation of dedicated funds ensures that this budget will simply act as
a stop gap, forcing the real budget decisions to be made in the next
biennium.

Some promising aspects of the Governor's budget sound like recommendations
from EFF's Stewardship Series: streamlining state government by eliminating
programs that are incompatible with government's core mission, and
efficiency and accountability standards.

Still, while positive steps are being taken, this budget raises serious
concerns. Governor Locke is relying on additional revenues that will be
collected through liberalized gaming laws, a liquor tax surcharge, and
dedicated funds shifted to the general fund.

Does the state really want to rely on gambling to solve budget needs? By
depending on gambling for revenue, the state may find itself condoning
activities that ultimately take a heavy toll on government services and the
culture at large.

As for the surcharge on liquor sales, when this has been attempted in the
past tax revenue has actually decreased. Consider Initiative 773 (increasing
taxes on tobacco), which is projected to reduce state revenue by $9 million.

In addition, by raiding more than $250 million from dedicated funds to
balance this budget, the state is all but assured of a huge deficit bow wave
carried into the next biennium when these one-time revenue sources are used
up. These strategies provide only temporary relief, but do nothing to
address the long term financial solvency of Washington's budget practices.

While Locke's budget eliminates 440 full-time employees (FTE), over 8,400
FTEs have been added to the state's payroll since the Governor took office.
It is not entirely clear if the FTEs eliminated are current positions or
unfilled positions previously authorized.

Locke takes steps to reduce state health care costs by proposing a slight
reduction in the insulation between state workers and the cost of their
health care. Allowing consumers to be more aware of the expense of health
care will lead to cost savings in the long run. Still, much more needs to be
done to reign in the state's out-of-control health care costs.

Locke's budget includes some good suggestions, but amounts to little more
than buying time. If state officials want to seriously address the budget
crisis and avoid future deficits, they need to address core issues. They
should start by reviewing agency mission statements and performance
measures. This would allow them to prioritize and limit the budget to core
governing principles.
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To view EFF's Stewardship Series please visit our web page at www.effwa.org
.

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