State Treasurer’s duties under I-601

by Jason Mercier
Evergreen Freedom Foundation

3/5/06

OLYMPIA, WA —The transcript of Snohomish County Superior Court Judge James Allendoerfer's oral ruling reducing the state's 2005-07 I-601 spending limit by $250 million was released by the Court yesterday. In response to the judge's ruling, the Evergreen Freedom Foundation sent a letter to the State Treasurer today reading in-part:

On March 17, 2006, Snohomish County Superior Court Judge James Allendoerfer ruled the state's 2005-07 budget violates the I-601 spending limit and ordered the spending limit adopted by the Expenditure Limit Committee on November 21, 2005, lowered by $250 million to $25,882,800,000. A copy of the transcript of the judge's oral ruling can be found here: http://www.effwa.org/pdfs/601ruling.pdf

Assuming this ruling is upheld on appeal, what actions do you intend to take to comply with [I-601]?

"State law prohibits the Treasurer from issuing checks in excess of the spending limit and requires quarterly deposits into the protected emergency reserve account if revenues exceed the limit," said Jason Mercier, senior budget analyst for the Evergreen Freedom Foundation. "Although the state is appealing the ruling, the Treasurer should have a plan to retroactively comply with his duties under I-601."

RCW 43.135.025(1-2)
(1) The state shall not expend from the general fund during any fiscal year state moneys in excess of the state expenditure limit established under this chapter.

(2) Except pursuant to a declaration of emergency under RCW 43.135.035 or pursuant to an appropriation under RCW 43.135.045(4)(b), the state treasurer shall not issue or redeem any check, warrant, or voucher that will result in a state general fund expenditure for any fiscal year in excess of the state expenditure limit established under this chapter. A violation of this subsection constitutes a violation of RCW 43.88.290 and shall subject the state treasurer to the penalties provided in RCW 43.88.300.

RCW 43.135.045(1)
(1) . . . During each fiscal year, the state treasurer shall deposit in the emergency reserve fund all general fund -- state revenues in excess of the state expenditure limit for that fiscal year. Deposits shall be made at the end of each fiscal quarter based on projections of state revenues and the state expenditure limit . . .

Additional Information
EFF Letter to State Treasurer
Transcript of Judge's Oral Ruling
Judge Throws Out Illegal Tax Hikes