Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - February 15, 2001
Contact:  Governor's Communications Office, 360-902-4136

Locke proposes millions to help cities make up for lost revenue

OLYMPIA - Gov. Gary Locke today said he has proposed more than $190 million in the next biennium to help cities and counties make up for revenue lost due to Initiative 695.

The governor made his remarks before the Association of Washington Cities' 2001 City Legislative Action Conference.

Locke said, "We all know cities are still feeling the aftershocks of Initiative 695 and that reacting to Initiative 695 is not the only challenge our cities face."

"I want you to know that the budget I propose increases local government backfill by nearly $60 million over the last biennium. That is, we included last year's supplemental budget for the next biennium and increased it to account for inflation and population growth," the governor explained.

Locke said he also was trying to help cities by developing new funding mechanisms so they can build new sewers, roads, bridges, water systems and other infrastructure to meet the needs of their growing populations.

On another key issue, the governor vowed the Legislature would not leave until a transportation strategy to "Get Washington Moving Again" was developed.

"That means we stay until we've agreed on how to make our existing system more efficient, on which projects to act now and on how to fund transportation," Locke said.

Locke told the group he had introduced a bipartisan package of energy proposals which also was moving through the Legislature.

The package would use incentives and other steps to promote more electrical generation by businesses and homeowners.

"We have targeted those incentives. The state could not possibly afford to give tens of millions of dollars in tax breaks to companies already making huge profits from this crisis," Locke said.

"The tax incentives must be focused on helping companies generate their own power to keep them out of the volatile spot market," he added.

"I know you are deeply concerned about BPA's recent announcement that it may raise rates by 90 percent or more during the next few years," Locke said. "I am also deeply concerned."

"I have urged the Bush administration in the strongest terms to help us temporarily stabilize a market that is wildly out of control," Locke said. "But the administration has made clear that it does not believe strong action is necessary. I can tell you, however, the administration's policy of inaction is simply not working."

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