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Weve got it pretty good
right now.
Our states unemployment rate is relatively low, economic forecasts have been positive and many business sectors are strong. There is no doubt our state has benefited from a strong national economy.
Living in the Puget Sound area, we are aware a rainy day will eventually be in the forecast. Thats why we buy umbrellas and plan accordingly.
Applying this analogy to our state economy, we also know we will eventually be impacted by a national economic downturn. Even optimists would say: its not a matter of if, but when.
And our state does not have the cover it needs to weather these conditions.
Its always best to prepare for bad times during good times. This is no different than your family putting money away in a savings account just in case. And when putting your money aside, it probably means you have to change your spending habits.
So should our state government.
Preparing for the future starts with state spending or our state operating budget. I had the honor of writing this budget in 2003 as chair of the Senate Ways and Means Committee. During this budget cycle, our state faced a $2.8 billion deficit.
I was able to reach across party lines to pass a budget that did not raise taxes or cut services for our most vulnerable citizens. I helped lead a priorities of government process when many people said it could not be done.
But we did it.
Unfortunately, this approach has been abandoned. Since Governor Gregoire has controlled the budget process, state spending has increased by almost 33 percent or $8.2 billion. Our budget has now ballooned to $33.4 billion.
This is irresponsible and unsustainable.
You might also be wondering about state revenue. Therein lies another problem.
Our state spending is drastically outpacing revenue. In fact, in our current budget our spending rate is almost twice as much as our revenue rate.
The governors own budget office projects a $1 billion deficit in a few short years assuming a strong economy.
So where will this eventually lead us? Down the wrong path. And the incumbent has proven she is not afraid to raise our taxes or maybe even add a new one.
We dont need a weatherman to tell us which way the political winds are blowing in Olympia. Governor Gregoire told a newspaper in April that she supports a state income tax, but that the public hasnt sufficiently been educated on its merits.
The only thing we need to learn is this the incumbent needs more of our tax dollars.
Governor Gregoires language is reminiscent of her 2004 campaign pledge to not raise taxes. Shortly after being certified governor, she changed her mind and said I never really said no taxes.
She did not keep her promise.
So the first step in protecting our state from a national economic downturn is controlling state spending plain and simple.
If we dont control state spending, it could also mean higher business and occupation (B&O) taxes on our employers in the future. And when we take money out of the pockets of small businesses and entrepreneurs, it means smaller private investments, fewer jobs and limited economic growth in our state.
This will all add up to even less state revenue, which amplifies the voices calling for more tax increases.
If this sounds like a merry-go-round or sorts, well it is. And our state needs to jump off now before its too late.
The second step in protecting our state from a national economic downturn is easing the regulatory burdens and expenses on our small businesses.
Small businesses are the backbone of our states economy. They provide a majority of our jobs and the B&O taxes they pay help fund our public schools, health care system and public safety. Without small businesses, we wouldnt have many of the services of state government.
Yet state government doesnt always seem to understand and appreciate the challenges small businesses face. While state government often has good intentions, it is sometimes oblivious to how its rules and regulations affect small businesses.
For example, a proposed state Department of Labor and Industries (L&I) emergency heat stress rule was implemented last summer for businesses with employees who work outdoors. The rule requires employers to have heat stress training, a written heat stress policy and provide workers with shade, cooling areas and one quart of water per employee, per hour.
Now we all understand the importance of worker safety and health, but shouldnt state government have more confidence in the wisdom of our workforce? I do.
Surely we dont need state government telling people how to stay cool on a hot day. And certainly we dont need small businesses spending time and money to develop new training and policies.
Even liberal commentator Ken Schram described this rule as Training for Common Sense.
Unfortunately, this example is all too common in state government. It often over-reaches and creates a financial and compliance burden for small businesses.
What messages are we sending to employers outside the state that might want to relocate here? And what are we saying to the man or woman who has a dream to open his or her own business someday?
State government needs to look for ways to eliminate red tape not add to it. And its time for our state to spend your taxes dollars wisely so we are prepared for the next rainy day.
(Editors Note: During the election campaign, I didnt feel it was appropriate for me, as a candidate for Mayor of Port Orchard, to continue writing this column, and we have invited a series of guest columnists to express their views in this space. However, with the election being over Nov. 6, my column will return next issue. no matter what the election result. Thank you all for your patience and understanding. LFC)
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