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Washington Wins National Award for Priorities/Price of Government |
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Written On: November 23, 2004 |
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AWB Urges New Governor and Legislature to Implement POG II in 2005
OLYMPIA—The nationally recognized Council of State Government (CSG) awarded Washington state one of its “Innovations Awards” for developing and implementing the "Priorities/Price of Government" (POG) budget system in 2003. CSG annually recognizes eight state programs for finding innovative solutions to public policy challenges.
“CSG's recognition provides welcome confirmation that Washington is on the right track,” Dick Davis, president of the Washington Research Council (WRC), said. Davis has served on the guidance team for the POG since its inception.
“The real challenge will be to keep the POG momentum going,” Association of Washington Business’s President Don Brunell said. Brunell, the vice chair of the national Council of State Chambers (COSC), introduced the POG to his colleagues at a national meeting last winter. The concept caught hold, and one of the other large states now implementing it is Michigan.
In 2002, Gov. Gary Locke, with bipartisan legislative support, used the priorities of government model to address a $2.7 billion budget shortfall without raising taxes. While other states struggled during the economic downturn, chasing new revenues, and slashing budgets, Washington managed to maintain critical programs by setting priorities and budgeting within existing revenues.
“In fact on July 1, 2003, Washington was one of few states to pass a balanced budget. Thirty-seven other states including Oregon and California were arguing over spending cuts and taxes which is the traditional way lawmakers and governors approached economic downturns and declining revenues,” Brunell said. “I believe it even cost former California Governor Gray Davis his job.”
“We simply said STOP! What revenues do we have, and where do we want to spend our money—and it worked.”
This year, through the Office of Financial Management, the state has refined and expanded the priorities of government process. With estimates of the shortfall for 2005-2007 reaching $1.6 billion, the new governor and Legislature will have to remain focused on the fiscal discipline.
Both Dino Rossi and Christine Gregoire said during the gubernatorial campaign they wanted to continue the POG as governor. Rossi was instrumental in pushing the POG-based budget through the Legislature in 2003 when he was Washington State Senate Ways and Means Committee chair. Gregoire indicated she wants to expand the number of participants in the POG if she is governor.
WRC, the Washington Roundtable and the Association of Washington Business (AWB) formed the Washington Alliance for a Competitive Economy (WashACE) six years ago. All three organizations strongly support the POG.
“One of our continued goals is to match revenues with need,” Brunell said. “It is important that the Legislature implement the next steps of the POG in 2005 as difficult as it may be.”
Brunell indicated that Peter Hutchinson, a Minnesota consultant and architect of the POG, said the initial steps in prioritizing available revenues with programs needing funding were difficult, but POG II, which WashACE is pushing to continue in 2005, will be much more challenging.
“Many of the one-time cuts were taken and funding of some items—such as teacher pay and classroom size reductions—were deferred in 2003,” Brunell added. “Now the Legislature will have to address them in 2005 when it develops its next two-year state operating budget.”
“Toss into the mix the issue of funding enrollment growth at our state’s community colleges and four-year universities, and we could be looking at a $2 billion revenue shortfall when the Legislature comes to town in January,” Brunell added. “So, prioritization of spending programs is essential.”
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