Washington Business Fall 2019 | Washington Business | Page 40

business backgrounder | taxation A Stitch in Time Six ideas for reforming the spending structure to keep budget growth from unraveling the state’s coin purse. Clay Hill Despite having record revenue and a growing state economy, the Legislature approved $2.9 billion over four years in new and higher taxes this year. Missing from the debate about which taxes to raise and how high to raise them was any serious discussion about how to save money. With that in mind, AWB’s Clay Hill offers insights on how lawmakers can reform the spending side of the state’s balance sheet. At A Glance New spending initiatives have sent the state’s budget on a 44 percent growth spurt in the last decade. Bills to create new programs or enhance existing programs outnumbered bills to abolish ineffective programs 1,000 to one. Those that propose consolidation or efficiency often don’t receive a public hearing. Citizens deserve smart spending. Practices like reporting cost drivers for each agency, studying the effectiveness of current spending, learning from the best practices of other states, identifying the likely impacts of lower spending levels, establishing expiration dates on new spending programs, and providing bottom-up cost-benefit analysis reports with each biennial budget request are six ways the state can ensure the proper stewardship of taxpayer money. 40 association of washington business State spending is on autopilot and gaining altitude fast. The state budget has grown at 44 percent, adjusted for inflation, since the Great Recession. Despite having an economy growing faster than — DHM Research, AWB Tax Survey, April 2019 almost all other states, and record revenue, leadership from the majority party in Olympia decided last session that revenue was inadequate to fund priorities. As a result, much of the debate among lawmakers in Olympia ends up being about whether and how much to raise taxes. What’s not discussed nearly as often as it should be is whether the programs and services that currently receive tax funding are effective. This latter conversation is more aligned with the views of Washington voters. In a recent poll, 33 percent said state government is doing too much, while only 14 percent said services should be expanded. “In a recent poll, 33 percent said state government is doing too much, while only 14 percent said services should be expanded.”