Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - May 20, 1997
Contact: Governor's Communications Office, 360-902-4136
Having vetoed major sections of the initial operating budget approved by the Legislature last month, Locke today praised lawmakers for sending him a revised plan that provides additional support for public schools, health care, job training and other key priorities.
The new financial plan for the two-year period beginning July 1 also holds growth in state spending to the lowest rate in 25 years, rolls back $94 million in business and occupation taxes, and gives voters an opportunity in November to cut property taxes by $194.6 million over the next two years.
"I'm pleased that legislative leaders agreed to work with us to increase support for public education and other programs designed to help working families," Locke said. "This is a much better budget for the people of this state because of the bipartisan cooperation we saw during the 1997 Legislative Session."
Still, Locke said there is still some "unfinished business" with regard to several pieces of the state's financial plan - in such areas as transportation funding, water policy and health care - and promised to revisit these issues in the next legislative session.
1997-99 Operating Budget
The $19.1 billion General Fund-State (GF-S) operating budget signed into law by the Governor addresses many of the concerns Locke expressed with the initial budget sent to him last month. After intense negotiations with the Governor, the Legislature agreed to add $29 million in funding for public schools and higher education (including $5 million for worker retraining), $29.8 million to boost enrollment in the state's Basic Health Plan, and $12 million for additional Child Protective Services workers.
Before signing the final operating budget into law, Locke again exercised his veto authority to strike several provisions he said he could not support. Through his veto actions, the Governor eliminated:
- A budget proviso that would have prohibited the state from accepting $16 million in federal Goals 2000 funding available to support education reform and raise academic standards.
- A proposed co-payment plan that could have significantly increased the cost of child care for low-income families. Instead, the Governor directed the state Department of Social and Health Services (DSHS) to develop a co-payment plan that will "make child care affordable and support the principles of the WorkFirst welfare-reform plan that makes work pay."
- A change in distributing student financial aid, which could have the effect of reducing the amount of aid to students not living with their parents.
- A change in the distribution of state funds for bilingual education that the Governor said has not been adequately evaluated. He did approve a proviso that directs the Superintendent of Public Instruction to study the issue and make a recommendation on possible changes next year.
- Budget provisions related to several water rights bills, parts of which he also vetoed saying they were "inconsistent" with a balanced state water policy. He did, however, sign a number of water bills into law, which he said would help set the stage for further progress over the next year.
In all, today's veto actions had the effect of increasing net GF-S expenditures by $4.6 million, while also allowing the state to use the $16 million in Goals 2000 funding available from the federal government. Even so, the final operating budget will hold state spending $151.1 million below the biennial spending limit established by Initiative 601, and restricts growth in GF-S expenditures to an average of 3.8 percent per year - the lowest in 25 years.
While committed to controlling state costs, Locke expressed concern about a 70 percent reduction in the budget for the Columbia River Gorge Commission. To help the Commission meet its statutory obligations over the next year, Locke said he will provide $75,000 from his emergency fund but said he will seek additional funding for the commission next year.
"These additional funds do not solve the budget crisis for the Columbia River Gorge Commission," said Locke, noting that the 70 percent reduction amounts to a loss of $410,000 in the 1997-99 Biennium. "I implore the Gorge Commission, County Governments, and Gorge residents to work together during the interim to develop a budget proposal for the Commission which can be mutually supported before the Legislature in the 1998 Legislative Session."
Transportation Budget
One major disappointment, Locke said, was the Legislature's failure to "raise the revenues necessary to meet the growing demands on our state's transportation system." Despite bipartisan support, a bill that would have raised an estimated $367.8 million in the 1997-99 Biennium - and $1.3 billion over the next six years - to fund statewide transportation projects was never brought to a vote.
Locke said the $3 billion transportation budget he signed into law today will allow the state to maintain existing highways, but will do little to help ease congestion or meet future transportation demands.
"An effective transportation system is absolutely critical to our state's economy," Locke said. "If we want to do something about traffic congestion and keep our economy moving forward, we need to make a real commitment to invest in our transportation system - and the sooner the better."
Locke vetoed the Legislature's plan to transfer $50 million from the state's general fund to the Transportation Fund in the second year of the biennium, saying it would do little to meet the state's transportation needs while shortchanging other state priorities. He said that the proposed transfer would have had the effect of reducing allowable spending under Initiative 601 by $100 million in the 1999-01 Biennium, when demands on the general fund are expected to be even stronger than they are today.
"The negative impact on general fund programs resulting from the proposed fund transfer would have far outweighed the minimal impact it would have had on transportation funding," Locke said. "That seems like a misguided policy given the struggle we've just gone through to provide adequate funding for public education and programs like the Basic Health Plan."
Locke said he would introduce legislation early next year to make up half of the $100 million he had to cut from the transportation budget in order to block the proposed $50 million transfer. Locke said he has received assurances from Transportation Secretary Sid Morrison that no construction projects will be delayed by the additional $50 million in vetoed appropriations.
With minor revisions, he also signed into law a provision in the transportation budget calling for a performance audit of the state Department of Transportation, and pledged to work with state agencies to make the best use of available transportation funding.
"We're going to do the best we can with what we have, but the need for additional revenues will not go away," Locke said. "Securing adequate funding for our state's transportation needs will be a priority for me during the next legislative session."
Capital Budget
On April 26, the Governor approved a $1.87 billion capital budget to support new statewide construction projects in the 1997-99 Biennium. Of that amount, $824.1 million is dedicated to fund projects for K-12 schools and higher education, including $126.7 million to begin an aggressive branch-campus construction program over the next ten years.
While pleased with that budget, Locke negotiated with lawmakers to approve a second capital budget that provides $10 million for several projects not included in the first.
- Housing Assistance: The supplemental capital budget provides $4.7 million in additional funding to support housing assistance, weatherization, and affordable housing programs administered by the Department of Community, Trade, and Economic Development. This brings total funding available for this program to $54.7 million in the 1997-99 Biennium.
- Heritage Park: A total of $4.6 million is provided to complete shoreline improvements for the Heritage Park project - a corridor that will link the Capitol Campus with Capital Lake and the southern reaches of Puget Sound.
- Community Services Facilities: Non-profit organizations will receive $700,000 to acquire, develop, and rehabilitate buildings for use in providing community-based family services in local communities across the state. This increases the amount for these grants to $2.7 million for the 1997-99 Biennium.
FOR IMMEDIATE RELEASE - May 20, 1997
Contact: Governor's Communications Office, 360-902-4136
Governor signs state budgets for 1997-99 into law
OLYMPIA - Gov. Gary Locke today signed into law the remaining pieces of the state's two-year financial plan, finalizing this year's work on the operating, transportation and capital construction budgets for the 1997-99 Biennium.Having vetoed major sections of the initial operating budget approved by the Legislature last month, Locke today praised lawmakers for sending him a revised plan that provides additional support for public schools, health care, job training and other key priorities.
The new financial plan for the two-year period beginning July 1 also holds growth in state spending to the lowest rate in 25 years, rolls back $94 million in business and occupation taxes, and gives voters an opportunity in November to cut property taxes by $194.6 million over the next two years.
"I'm pleased that legislative leaders agreed to work with us to increase support for public education and other programs designed to help working families," Locke said. "This is a much better budget for the people of this state because of the bipartisan cooperation we saw during the 1997 Legislative Session."
Still, Locke said there is still some "unfinished business" with regard to several pieces of the state's financial plan - in such areas as transportation funding, water policy and health care - and promised to revisit these issues in the next legislative session.
1997-99 Operating Budget
The $19.1 billion General Fund-State (GF-S) operating budget signed into law by the Governor addresses many of the concerns Locke expressed with the initial budget sent to him last month. After intense negotiations with the Governor, the Legislature agreed to add $29 million in funding for public schools and higher education (including $5 million for worker retraining), $29.8 million to boost enrollment in the state's Basic Health Plan, and $12 million for additional Child Protective Services workers.
Before signing the final operating budget into law, Locke again exercised his veto authority to strike several provisions he said he could not support. Through his veto actions, the Governor eliminated:
- A budget proviso that would have prohibited the state from accepting $16 million in federal Goals 2000 funding available to support education reform and raise academic standards.
- A proposed co-payment plan that could have significantly increased the cost of child care for low-income families. Instead, the Governor directed the state Department of Social and Health Services (DSHS) to develop a co-payment plan that will "make child care affordable and support the principles of the WorkFirst welfare-reform plan that makes work pay."
- A change in distributing student financial aid, which could have the effect of reducing the amount of aid to students not living with their parents.
- A change in the distribution of state funds for bilingual education that the Governor said has not been adequately evaluated. He did approve a proviso that directs the Superintendent of Public Instruction to study the issue and make a recommendation on possible changes next year.
- Budget provisions related to several water rights bills, parts of which he also vetoed saying they were "inconsistent" with a balanced state water policy. He did, however, sign a number of water bills into law, which he said would help set the stage for further progress over the next year.
In all, today's veto actions had the effect of increasing net GF-S expenditures by $4.6 million, while also allowing the state to use the $16 million in Goals 2000 funding available from the federal government. Even so, the final operating budget will hold state spending $151.1 million below the biennial spending limit established by Initiative 601, and restricts growth in GF-S expenditures to an average of 3.8 percent per year - the lowest in 25 years.
While committed to controlling state costs, Locke expressed concern about a 70 percent reduction in the budget for the Columbia River Gorge Commission. To help the Commission meet its statutory obligations over the next year, Locke said he will provide $75,000 from his emergency fund but said he will seek additional funding for the commission next year.
"These additional funds do not solve the budget crisis for the Columbia River Gorge Commission," said Locke, noting that the 70 percent reduction amounts to a loss of $410,000 in the 1997-99 Biennium. "I implore the Gorge Commission, County Governments, and Gorge residents to work together during the interim to develop a budget proposal for the Commission which can be mutually supported before the Legislature in the 1998 Legislative Session."
Transportation Budget
One major disappointment, Locke said, was the Legislature's failure to "raise the revenues necessary to meet the growing demands on our state's transportation system." Despite bipartisan support, a bill that would have raised an estimated $367.8 million in the 1997-99 Biennium - and $1.3 billion over the next six years - to fund statewide transportation projects was never brought to a vote.
Locke said the $3 billion transportation budget he signed into law today will allow the state to maintain existing highways, but will do little to help ease congestion or meet future transportation demands.
"An effective transportation system is absolutely critical to our state's economy," Locke said. "If we want to do something about traffic congestion and keep our economy moving forward, we need to make a real commitment to invest in our transportation system - and the sooner the better."
Locke vetoed the Legislature's plan to transfer $50 million from the state's general fund to the Transportation Fund in the second year of the biennium, saying it would do little to meet the state's transportation needs while shortchanging other state priorities. He said that the proposed transfer would have had the effect of reducing allowable spending under Initiative 601 by $100 million in the 1999-01 Biennium, when demands on the general fund are expected to be even stronger than they are today.
"The negative impact on general fund programs resulting from the proposed fund transfer would have far outweighed the minimal impact it would have had on transportation funding," Locke said. "That seems like a misguided policy given the struggle we've just gone through to provide adequate funding for public education and programs like the Basic Health Plan."
Locke said he would introduce legislation early next year to make up half of the $100 million he had to cut from the transportation budget in order to block the proposed $50 million transfer. Locke said he has received assurances from Transportation Secretary Sid Morrison that no construction projects will be delayed by the additional $50 million in vetoed appropriations.
With minor revisions, he also signed into law a provision in the transportation budget calling for a performance audit of the state Department of Transportation, and pledged to work with state agencies to make the best use of available transportation funding.
"We're going to do the best we can with what we have, but the need for additional revenues will not go away," Locke said. "Securing adequate funding for our state's transportation needs will be a priority for me during the next legislative session."
Capital Budget
On April 26, the Governor approved a $1.87 billion capital budget to support new statewide construction projects in the 1997-99 Biennium. Of that amount, $824.1 million is dedicated to fund projects for K-12 schools and higher education, including $126.7 million to begin an aggressive branch-campus construction program over the next ten years.
While pleased with that budget, Locke negotiated with lawmakers to approve a second capital budget that provides $10 million for several projects not included in the first.
- Housing Assistance: The supplemental capital budget provides $4.7 million in additional funding to support housing assistance, weatherization, and affordable housing programs administered by the Department of Community, Trade, and Economic Development. This brings total funding available for this program to $54.7 million in the 1997-99 Biennium.
- Heritage Park: A total of $4.6 million is provided to complete shoreline improvements for the Heritage Park project - a corridor that will link the Capitol Campus with Capital Lake and the southern reaches of Puget Sound.
- Community Services Facilities: Non-profit organizations will receive $700,000 to acquire, develop, and rehabilitate buildings for use in providing community-based family services in local communities across the state. This increases the amount for these grants to $2.7 million for the 1997-99 Biennium.
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