Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - February 26, 1997
Contact:  Governor's Communications Office, 360-902-4136

Locke announces new incentive plan to improve state efficiency and fund school construction

OLYMPIA - Gov. Gary Locke, in a joint appearance with Sen. James West (R-Spokane) and Rep. Tom Huff (R-Gig Harbor), outlined a plan to reward state agencies for saving taxpayers' money while also directing a portion of those savings to pay for school construction. The governor's proposed new "Savings Incentive Plan" is designed to motivate state agencies to save money through cost-cutting and efficiency measures.

"This Savings Incentive Plan will change the old government mentality of 'spend it or lose it' to a new attitude of 'save it and invest it,'" said Locke, who plans to release his budget plan early next month. "It will make state government become more efficient and provide better services at a lower cost so that we will be able to address the growing demands for state services within the spending limits established by Initiative 601."

Modeled after a similar initiative Locke implemented as King County Executive, the new incentive plan drew support from West, who chairs the Senate Ways & Means Committee, and Huff, chair of the House Appropriations Committee.

"This is an innovation to create incentives for state agencies and their employees that will save tax dollars and improve service," West said. "It furthers our goal of making government more accountable and more effective."

"I think it is important that there be incentives for savings and efficiencies," Huff said. "I look forward to working with the governor and Sen. West on an effective way to achieve that."

The business community is also in favor of the plan. "The concept of incentives for government agencies to save money is an approach we are delighted to see," said Don Brunell, president of the Association of Washington Business. "We look forward to seeing the details and working with the governor and legislature to implement it."

As part of the state efficiency plan, cabinet level agencies will be allowed to invest half of these funds in new initiatives to improve service and provide opportunity for additional savings. The rest will be used to fund local school construction projects across the state.

Locke noted that in the past, state agencies have had little incentive to conserve unspent funds at the end of each fiscal year, knowing that any savings would be taken away and returned to the state's General Fund.

The Savings Incentive Plan is expected to save $85.5 million in General Fund-State (GF-S) dollars in the 1997-99 biennium, growing to $99.2 million in the 2001-03 budget period.

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