Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - March 6, 1997
Contact:  Governor's Communications Office, 360-902-4136

Gov. calls on Legislature to make tax cuts as part of comprehensive budget strategy

OLYMPIA - Gov. Gary Locke today vetoed Engrossed Senate Bill 7902 saying the legislation was not part of a comprehensive budget plan. He encouraged the Legislature to create a long-term financial plan before further cutting taxes and to be up front with the people of the state about the trade-offs when taxes are cut.


"I support rolling back the Business & Occupation tax and have submitted a business tax cut that I can pay for while still giving meaningful tax relief to homeowners and improving education funding," Gov. Locke said. "But I won't pay for all $700 million-plus in tax cuts being proposed by the Legislature."


Earlier this week, Locke proposed a rollback of the B&O tax to pre-1993 levels when the tax was raised to solve a severe financial crisis. The Governor's plan would save businesses $94.3 million beginning in 1998.


Gov. Locke's proposed budget also gives $216.9 million in tax cuts to homeowners across the state. The cut would be a tax credit that would amount to $111 in 1998. The credit would grow to $153 by the year 2003.


"I don't believe we should do the state's business through referendum," Locke said as he signed a technical adjustment to a property tax referendum sent to him by the Legislature. "The people sent us here to find consensus on the tough decisions. However, if we can't find agreement on property tax cuts, I call on the Legislature to put my property tax cut on the ballot too."

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