Sen. Zarelli statement on state’s September revenue forecast

September 17, 2009

OLYMPIA…Sen. Joseph Zarelli, Senate Republican leader on the state Economic and Revenue Forecast Council, was unable to attend this morning’s council meeting but issued this statement regarding the September quarterly revenue forecast his colleagues adopted at the Capitol: 

“Whether or not the state economy is recovering, the level of revenue the state is now collecting should be viewed as the new norm, not as a temporary drop from the norm. The baseline has been reset. We as legislators should reset our thinking accordingly.  

“Washington families and employers are being forced to economize, to look at every opportunity for reducing costs. Yet earlier this year the legislative majority passed up opportunities to adopt several significant money-saving reforms in areas like social and health services which account for a majority of state spending. Fortunately those reforms are still available. 

“Regardless of how the national health-care discussion turns out we can lower the cost of the state’s Basic Health Plan while upholding its original intent. While the debate about K-12 education funding takes place in courtrooms and task force meetings, the Legislature can adopt a better, less-expensive approach to bilingual education. And we can, at last, make use of the 2002 law that allows an expansion of competitive bidding to lower the cost of certain state programs.  

“Prior to today’s forecast the operating budget was out of balance by about 525 million dollars, not counting the voter-approved rainy-day fund, after factoring in the June caseload forecast, budget vetoes and other revenue assumptions that fell through. Now it’s at about 765 million dollars, which is a huge gap for the governor to try addressing on her own. We shouldn’t count on more bailout money from the federal government, and I don’t sense the voters of Washington are in favor of the majority party’s proposals to raise taxes, so the Legislature simply has to step up.  

“The time to begin considering reforms to save money is in two weeks, when legislators come to the Capitol to prepare for the 2010 session. Next March, when it’s time to adopt a supplemental budget, will be too late.” 

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For more information contact Eric Campbell
at (360) 786-7503 or campbell.eric@leg.wa.gov