Proponents of tax increases say Washington’s budget has already been cut by $10.5 billion since 2008. But as Mike Baker from the Associated Press noted, “That number is only true if you stretch the interpretation of what a budget cut is.” He goes on to say, “Many of the hundreds of cuts Gregoire and other Democrats have tallied are simply automatic spending increases that didn’t end up happening.”
The truth is state spending is UP from the previous two-year budget cycle and is projected to continue to rise. See the chart below.
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The reason we have this budget deficit is that unlike families and employers in these tough times, state government has not yet adjusted to the realities of the economy. Instead of properly aligning state spending with existing tax collections, the Legislature has continued to spend beyond its means.
Here’s the other reality: Revenues for the 2011-13 budget cycle are projected to be up by $2.15 billion over the previous biennium!
HISTORY OF STATE SPENDING
In the chart below, you can clearly see there is a constant trend line of spending increases since the 1980s. However, large increases in 2005 and 2007 – coupled with additional federal “bail out” dollars – created a false sense of “normal” budgeting levels. The reality is that the 2011-13 budget as enacted in May 2011 was close to the long-term trend with spending over the last 30 years.
Even when adjusted for inflation, state spending for 2011-13 more than doubled since the 1981-83 budget, and is on par with spending before the recent recession.
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WHERE DOES THE MONEY GO?
Is less being spent on K-12 schools? Take a look for yourself.
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Another area that concerns me is the rising cost of debt service (see the chart above). That’s the cost of borrowing money for capital construction projects. In the 2011-13 operating budget, debt service from capital budget projects will cost taxpayers nearly $2 billion. That’s just a little more than the $1.7 billion that was cut from K-12 education when the budget was passed in May. Imagine how many more teachers could be funded if there wasn’t such a large amount of debt. Part of those dollars was borrowed to purchase new lands for parks and recreation use. Yet, the state cannot afford to take care of the parks that currently exist. So it’s now charging a $10 day fee or a $30 annual Discover Pass fee for people to access parks.
MORE MUST BE DONE TO REFORM STATE GOVERNMENT BEFORE ASKING VOTERS FOR A TAX INCREASE
In making her case for tax increases, the governor points out that all areas of state government are operating on reduced budgets. Is that true?
See the chart below and you will discover the Department of Ecology’s budget has continued to rise, taking only a slight dip during the 2009-11 biennium.
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I believe more must be done to reform and reshape state government. When our school districts are facing cuts while environmental programs are finding their budgets increasing, something is wrong with this picture. When we are increasing our debt limit to pay for more public lands we can’t afford at the expense of more important programs, something is wrong and we have not done enough to set the correct priorities in the budget. Our spending priorities must be on education, public safety and protecting the state’s most vulnerable population. They should not be held hostage in an attempt for the government to take more of your tax money.
We need to unleash the power of the private sector and get Washington working again. My fellow House Republicans and I have such a plan: Read about it here. I believe a healthy economy will enhance the prosperity of working people and generate more revenue for state and local governments. This is a vastly better approach than trying to raise taxes on people, many of whom do not have jobs, when they can least afford it.
