Save at least $1 billion

With word that Friday's revenue forecast could bring the state bad economic news, elected officials in Olympia are starting to back off their commitment to save at least $1 billion when adopting an INCREASE in spending with the 2008 supplemental budget:

"Gregoire indicated she's willing to back off her request for a $1.2 billion [reserve], and possibly even below the $1 billion mark, depending on how bad the new forecast is. That was the first time she has said $1 billion isn't an absolute bare minimum reserve she would accept." (Olympian, February 12, 2008)

If anything, a downturn in the revenue forecast illustrates the need for the state to save MORE than $1 billion, not LESS. Here are the comments previously made about the need to save $1 billion:

• "For too long, state government has spent in the good times, and then made painful cuts when our economy has slowed. We are getting off that roller coaster." - Governor Gregoire (Seattle Times, January 16, 2008)

• "Saving money now is vital to ensure that we have money in the future. This is a historically high total of $1.2 billion in savings; it will take us a long way to ensuring the security of Washington's economy." - Governor Gregoire (Seattle PI, December 18, 2007)

• "I agree with the governor. We have to continue living within our means. There will be pressure from all our members, who have their own issues," said Senate Ways and Means Committee Chairwoman Margarita Prentice, D-Renton, who declined to say how close to Gregoire's $1.2 billion in reserves the Legislature would hit. "We're going to hang on to a lot of it." (Olympian, December 19, 2007)

• "We were already planning to leave a big ending fund balance of over $1 billion but we know that there are some places we'd like to do more this year -- the storm victims and potentially in education -- so we are looking for ways to balance that out by cutting in other areas." - Senate Majority Leader Lisa Brown (Seattle PI, January 28, 2008)

• “[Victor] Moore said Gregoire's goal of keeping $1 billion unspent to protect against a bigger downturn in the future could mean programs getting cut instead of spending down the surplus.” (Seattle PI, January 28, 2008)

• "[Democratic] party leaders say they want to set aside at least $1 billion of a tax surplus in the state budget to act as a buffer against a looming recession.” (Seattle Times, January 13, 2008)

• “Gov. Christine Gregoire wants to set aside $1.2 billion in case the state goes into recession . . . Gregoire has positioned herself as the defender of the surplus, saying she's being pressured by interest groups and legislative leaders to spend more.” (Seattle Times, January 13, 2008)

• “House Speaker Frank Chopp, D-Seattle, and Senate Majority Leader Lisa Brown, D-Spokane, told the forum that lawmakers concur with the governor and predicted the Legislature will save at least $1 billion to balance future budgets when the state economy inevitably slows down.” (Tacoma News Tribune, January 9, 2008)

We'll soon know if our elected leaders are really committed to fiscal discipline when news is bad or if their "restraint" only applies when good revenue forecasts make saving money easy.