The Chair and ranking member of the State Senate Ways and Means Committee were interviewed by TVW’s Austin Jenkins last Thursday on what the options are for lawmakers to address the estimated $1 billion plus budget deficit. Among the questions Jenkins asked Sen. Ed Murray (D) and Sen. Joe Zarelli (R) were their thoughts on our proposal to provide the Governor with discretionary budget cutting authority:
The topic of whether a tax referendum would be put on the ballot also was discussed along with how that would be received by voters in light of state revenues still projected to increase by $2.1 billion:
Jenkins also asked Murray and Zarelli if it was time to re-open the state’s union contracts:
The question of the state’s tax structure also was discussed:
On that topic, regardless of how you slice up a state’s taxes, there is no such thing as a recession proof tax structure. For budget peace of mind when the economy recovers, states need to use a “three-legged stool” of sound budgeting:
- Meaningful spending limit to avoid overextending in the good times;
- Protected 10% reserve account (so you don’t have to resort to tax increases or deep spending cuts in the bad times); and
- Limiting base expenditures to core functions within the revenue forecast when in the good times
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[Reprinted from the Washington Policy Center blog; photo credit: anujraj]
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