Says budget leaves state short

OLYMPIA - Sen. Mark Schoesler, R-Ritzville, voted against the 2008 state supplemental operating budget saying it's inadequate.

"This budget spends about $1.7 billion more than the state has in available revenue," he said.

Schoesler said projected budget spending is close to $33.7 billion while the projected revenues are only $32 billion. The budget leads the state to a $2.4 billion deficit in 2009 and a $5.1 billion revenue shortfall by 2011, he said.

"Here we're facing some huge deficits and yet the Legislature just passed a budget that spends like we're awash in money," Schoesler said. "We should have taken steps now to minimize spending and maximize savings so we can better cushion the upcoming revenue shortfall. A supplemental budget should make necessary changes to caseloads and other midcourse corrections to the two-year budget. It should not fund new programs or spending ventures, especially when we're facing such an enormous deficit."

He said state revenue increased 6 percent and spending increased 16.1 percent since the last budget cycle. State revenue is acceptable but the budget is problematic due to too much spending, the senator added.

The ending reserve fund balance of the budget is approximately $836 million, Schoesler said. The balance includes the $466 million set aside in the rainy-day fund. To access the rainy-day fund it requires a constitutional amendment during an emergency.

"The true ending fund reserve is $390 million," he said. "That's about 1 percent of this budget. The way things are looking, that will be gone in the blink of an eye when the Legislature meets next year."

The operating budget passed the state Senate Thursday afternoon with a vote of 31-18. It awaits approval from the governor.