Sen. Zarelli statement on November state revenue forecast
"...we'd be in a much different position today if the Legislature and the governor had saved more of the surplus revenue instead of spending it in these past few years."

November 19, 2008

OLYMPIA… Sen. Joseph Zarelli, Republican leader on the Senate Ways and Means Committee and member of the Economic Revenue and Forecast Council, issued this statement following the council’s approval today of the November state revenue forecast:

“Understandably, the overriding question is how a deficit projected at more than 5 billion dollars will affect the development of the 2009-11 state operating budget. But today’s forecast means the incoming Legislature will have a second and more immediate concern, which is to make sure the current state budget doesn’t fall out of balance. One of the first things the Legislature should do when it convenes in mid-January is adopt a new supplemental budget which brings spending into line with the revenue available, to keep the treasury from running dry before the new operating budget takes effect in July. The sooner spending is reduced, the better.  “Governor Gregoire has again pledged to not raise taxes, and I hope the budgets she proposes next month are true to her vow. That would set a good example for the Legislature and send a message to taxpayers that they aren’t being expected to bail out the government by sending even more money to Olympia.

Sen. Zarelli asks a question during the November meeting of the Revenue Forecast Council.

"I’m encouraged that the governor is reaching out in our direction for ideas about how to reduce spending. Seeing that she has acted on some of our suggestions, like a hiring freeze, I am open to offering others. I don’t expect her or the majority party in the Legislature to solve this alone. 

“It’s been suggested that the national economy is to blame, when the root cause is a level of state spending that increased at more than double the rate of revenue growth. The shortfall was projected at 2.5 billion even before the 2008 legislative session ended. No one can say they didn’t know a huge deficit was coming, because the warning signs have been up for at least the past year, when revenues began to drop.

“The national economic situation has exacerbated the situation, certainly, but we’d be in a much different position today if the Legislature and the governor had saved more of the surplus revenue instead of spending it these past few years. It’s more important than ever that we return to the original ‘Priorities of Government” process, from 2003, and hold each of the state’s spending commitments up for reconsideration. Everything needs to be on the table.”

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