7-3-2003
I-601 set the stage for living within our means
By Don C. Brunell, President
Association of Washington Business

Love it or hate it, credit Initiative 601 for changing the way the Governor and lawmakers approach budgeting in Olympia these days. The ballot measure, approved by voters nearly a decade ago, tied state spending to inflation and growth in personal income.

I-601 set off a flurry of other ballot measures that sent elected officials a strong but mixed message. On one hand, taxpayers said they didn’t like high car license tabs and property taxes; on the other hand, they voted to raise salaries for teachers and home health care workers, reduce classroom size, and allow police and firefighters to essentially set their own pension levels.

Voters not only limited state spending, they also told politicians they wanted them to change the way they spent taxpayer money. Voters were clearly frustrated by the old approach to budgeting in which existing programs were sacrosanct and lawmakers raised taxes and fees to fund new ones. Government programs were never cut, the ranks of state workers swelled, and everything from soup to nuts was regulated for a fee.

Simply put, voters wanted bureaucrats and elected officials to run government the same way taxpayers ran their own households. There’s only so much money, so they have to make hard choices every day.

That frustration led Gov. Locke to launch the Priorities of Government (POG) process late last year. It was the first such comprehensive process undertaken by any governor in the nation. That bold action alone sends a strong message to Boeing and every other employer looking to open a business or construct a plant.

POG process resulted in a “live within our means” budget that Republicans quickly embraced. This year, POG principles led the Governor and lawmakers to agree on a $23 billion general fund budget that featured a $300 million reserve and no new taxes.

While the POG process of analyzing needs and setting priorities may seem complicated, it simply embodies the same principles you and I use with our own finances. We realize we can’t afford everything we want, so we make hard choices.

To be effective, POG cannot be a “one-time wonder” used only to get us through hard times. It must become part of the bureaucratic culture throughout government if we are to continue to restore taxpayer confidence in government and the political process.

But unlike I-601, POG is not locked into law, and legislators could be tempted to discard it when spending decisions become more difficult. If lawmakers abandon POG, voters will resort to something legislators dislike even more — micromanaging government by initiative.