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Zarelli revenue-saving proposal a 'gift to future
legislators' March 2, 2009
OLYMPIA…
The Senate
Ways and Means Committee late today endorsed legislation
that captures one of the important lessons of state government’s
budget situation, approving Sen. Joseph Zarelli’s proposed
constitutional amendment to automatically deposit “exceptional
revenue” into the state’s rainy-day fund.
To Zarelli, R-Ridgefield,
Senate Joint Resolution 8209 is the latest in a line of
lessons-learned fiscal legislation that created the Economic and Revenue
Forecast Council following the state’s 1981-83 budget crisis and most
recently produced the state rainy-day fund in 2007.
“This won’t help us come up with a budget for the next biennium. But it
would be a gift to future legislators, just like the forecast council
and, more recently, the rainy-day fund have proven to be,” said Zarelli,
who last week answered Olympia’s $8 billion question with a
strategy for erasing the massive state budget gap without tax
increases.
“There is no down side to this measure,” Zarelli said. “It represents
one less decision for the Legislature to make and one more protection
for the taxpayers, who need and deserve every protection they can get.”
Today is the cutoff for Senate fiscal committees to act on Senate bills.
Because Zarelli’s measure would amend the state constitution, it would
go on the November general election ballot if legislators approve it
during this session.
“I believe the people would recognize the merit of this just as they did
in creating the rainy-day fund in 2007. I appreciate the committee’s
endorsement and hope the Senate and House of Representatives will follow
suit,” Zarelli said.
Sen. Lisa Brown, Senate Democrat leader, is at the top of the list of
SJR 8209’s co-sponsors. She worked with Zarelli to put the rainy-day
fund amendment before voters, who approved it overwhelmingly.
Under SJR 8209 revenue collected in excess of 133 percent of the state’s
10-year revenue growth average would be defined as “exceptional” and go
into the state’s rainy-day fund. Had the change represented by his
proposal been made prior to 2005, Zarelli estimates the gap lawmakers
must close in adopting an operating budget for 2009-11 would be nearly
$5 billion smaller.
The state’s budget gap has reached $8.3 billion, based on a $1.3 billion
deficit in the current biennium, which ends June 30; a $6.5 billion
shortfall next biennium if lawmakers do not address the current biennium
deficit, continue government operations at today’s levels and allow
costly new policy changes to go forward; and on leaving $500 million as
an ending balance.
“I expect our state’s economy will rebound – although that will take
longer if families and job creators are saddled with higher taxes – and
maybe somewhere down the road we’ll experience another period of
exceptional revenue growth like the state had in 2005-07,” Zarelli said.
“If so, let’s treat that revenue like the one-time money it is and put
some aside.
“There was nothing to compel the Legislature to set aside any of the
extraordinary amount of revenue two or three years ago, and no safe
place to put it,” Zarelli added. “Now that we have a rainy-day fund and
have seen how quickly the huge revenue surplus disappeared, we need to
adjust our budgeting practices accordingly.” Zarelli’s budget-transparency measure, Senate Bill 5073, remains alive beyond today’s cutoff, being necessary to implement the budget. It would fold into the state’s general fund what are known as “near general fund” accounts, allowing lawmakers and taxpayers to better see and understand how much the Legislature is spending, and on what. —30—
For more information contact
Eric Campbell |