Much to the surprise of many state budget writers, it turns out there’s nothing in our state constitution that prohibits deficit spending.
Senate Ways and Means Chairwoman Margarita Prentice, D-Renton, said she didn’t know the state has no balanced-budget requirement.
Even so, she said: “If this is how we’ve always operated, by gosh, this is how we’re going to operate…“
Yup, that’s exactly the sort of creative, outside-the-box thinking we need during a crisis like this. (Kinda explains a lot about Olympia, doesn’t it?)
I’m not suggesting that we definitely should borrow money to help balance the state budget, but considering the anti-stimulus effects of state cutbacks during a major recession, the idea shouldn’t be dismissed out of hand simply because we’ve never done it before. And since Sen. Prentice (D-MoneyTree) sees no problem with her constituents paying 391-percent interest to payday lenders, you’d think a billion dollars or so at 5.5% interest might strike her as a relative bargain if it helps us weather this current economic storm without dramatically slashing K-12 education.
I’m just sayin’…
This debt issue is covered under Article VIII, Section 1 of the Washington State Constitution. In general, the state cannot issue bonds with a maturity greater than 30 years into the future. And the state cannot incur debt that would require payments (of principal and interest) during a given year of greater than nine percent of the average state general fund revenues for the last three years. Beyond that, there are quite a number of exceptions from these general rules contained in Article VIII, Section 1.
However, there is absolutely nothing that would require the state of Washington to balance its budget.
Thanks, Richard.
Cutting schools and education, as opposed to deferring payment on debt is good policy?
Richard Pope–
Then why did Gregoire (former AG) and all her minions repeatedly say they could NOT borrow to balance the Budget?
Interesting that the former AG who KNEW or SHOULD HAVE KNOWN this was somehow ignorant of the law….but Gregoire miraculously became informed after 39 years in Government that she can DEFICIT BORROW.
Seems like you are hanging out on the wrong team Richard….they are LIARS & FRAUDS!
Instead of going into debt we should raise dog license fees. Let’s say, oh, to $50,000 per dog. Any dog that doesn’t pay up gets euthanized! I’ll pull the switch on that fucking Balogh dog myself! And a whole lot of other dogs, too!! That’ll solve the election fraud problem in our state, too.
Spending within your means is good policy.
People in trouble now personally have often spent beyond their means.
Why should government be any different?
This new Borrow to Balance the Budget revelation is not a mere coincidence. Public Records requests will likely show it has been known for sometime…just wouldn’t want the voters to know about it before the election, right?
How can Gregoire, with 39 years in State Government including years as the AG pretend she did not know this DEFICIT BORROWING angle??
@4 Nah, just sloppy legal research. Richard can explain that to you, using crackpiper as an example.
Rog–
I’m all for taxing dogs…and rabbits too.
Especially the ones who shit on other people’s yards!
Rog–
You must be grinning as you posted #7.
You KNOW Gregoire & her huge, high-paid staff knew about this all along.
Mr Cynical – if you had to go into debt to pay for an emergency operation would you? Or would you choose not to because, you know, you had to “live within your means”?
Daniel K–
For the Democrats, an emergency means they bled the State Treasury dry, cannot control their voracious spending habits (33% over 4 years of Gregoire) and act like we are all gonna die if the State Government does not get a massive transfusion of more Tax Revenue or Massive Borrowing in the face of a Recession.
How about this Daniel K–
Lets start the Budget Process by looking at Gregoire’s own Governor’s Budget. It more than DOUBLED from what Gary Locke spent. Last time I looked she had something like 41 employees on her staff with SALARIES over $100k…Locke had 7.
Add on another 40% for Paid Benefits and Paid Time-off!!!!!!!!!!!
How come you KLOWNS immediately jump to Tax Increases and Borrowing….rather than evaluating WHAT Programs we are paying for, what services are delivered and are they cost effective???
Obama, like you KLOWNS, looks at government programs as the end-all.
CUT SPENDING!
Vote No on Borrowing and Tax Increases.
The only way to reign in State Government is to take away the money. WE THE PEOPLE are serving the Government…should be the other way around.
Oh and Daniel K–you are advocating passing this debt on to our children & grandchildren…right?
What is your plan to pay it back.
Time to Right-size the State Capital…now!
You didn’t answer, Mr Cynical:
If you had to go into debt to pay for an emergency operation on yourself or a loved one, would you? Or would you choose not to because, you know, you had to “live within your means”?
Also, remove ALL State Government Programs of AFFLUENCE.
For example, the Northwest Maritime Center…it is a building for rich folks with big sale boats to hang out, funded in large part by State & Federal Dollars.
It does absolutely NOTHING for feeding or housing the poor.
ANY & ALL Government funded spending MUST immediately be directly related to funding Housing and Feeding the poor among us.
Eliminate ALL programs of affluence like Open Space acquisitions, fancy parks etc.
Get back to the basics..
Food & Housing first.
Daniel K–
I did answer it…just not the way you wanted me to because your underlying assumption that our current government shortfall is the same as an emergency surgery is TOTALLY FLAWED!!
The Budget Crisis was created thru a series of DECISIONS made the past 4 years by our DEMOCRAT Legislature and DEMOCRAT Governor.
The good news Daniel K is that it is not an emergency because it can be corrected by decisions as well.
You KLOWNS always come up with some fancy, flawed analogy like this Overspending just happened….no one is responsible. Or increasing teachers salaries & benefits and the Education Bureaucracy is “For the Children”.
Is it??
It is also for the Bureaucrats & State Workers.
That’s how we got into this mess……….
Gregoire CHOSE to expand the role, size & cost of State Government in the face of a recession!
No – you didn’t answer.
Yes I did..
YOU are trying to equate Government OVERSPENDING with a necessary surgery.
I don’t agree they are even similiar.
I explained my answer in detail.
Of course I would go into debt for emergency surgery for a loved one.
Government spending is NOT that kind of decision?
Let me ask you a question Daniel K—-
Would you continue to spend money on video games, downloading i-tunes, going out to fine restaurants by charging it on your credit card even if you knew you had lost your job and only had enough money for basics (food, shelter & health)??
Would you use your credit card for extravagances you could not afford??
Answer please——-
I played your game.
If you had to go into debt to pay for an emergency operation on yourself or a loved one, would you? Or would you choose not to because, you know, you had to “live within your means”?
———
This question should go to Gregoire or lawmakers, where it will no doubt receive serious and timely consideration . . .
Gregoire was elected because of her leadership and judgment on the economy when it was known a big and only getting bigger deficit was looming. She ran a “cut spending, no tax hike” campaign. Floating debt to balance the budget wasn’t part of the discussion then, so I can’t imagine why it is now – after voters have bought off on this bargain by returning Gregoire to office.
It sure wasn’t being discussed in HA.
Gregoire’s return is barely a month old and her leadership is already being questioned.
The question is cogent. Sometimes you make the tough decision to take on a debt because the cutback would be worse.
Some of the things they plan to cut simply should not be cut. Might as well cut off a limb otherwise.
Daniel K–
You didn’t answer my question.
My question is cogent because Budgets are about PRIORITIES and cutting out all the fat.
I could not disagree more strongly. Any borrowed money not only has to be paid back in full at a later date (and we have enough of a hard time with revenue for a balanced budget in good years), it has to be paid back with interest. I think this is a very bad precedent to set. We must maintain a balanced budget for the future success of this state.