Our state faces an unprecedented budget crisis and economic elements are impacting Southwest Washington families, farmers and small businesses. As we weather this storm together, I’d like to share what I believe we can do to get our state finances in order and grow our economy.
An important starting point is an understanding that our state budget and economy are closely related. If state lawmakers cannot control spending, they cannot control taxes. And if taxes run out of control, the financial burdens will fall on families and employers. This leads to less consumer spending, higher unemployment and more budget and economic problems.
This is why I support taking tax increases off the table for the state’s 2009-11 budget. Our budget crisis offers an opportunity to commit to a more prioritized state government that focuses on education, transportation, public safety and the protection of our most vulnerable citizens. Taxpayers deserve the assurance that their contributions are being used wisely by state government.
A no-new-taxes approach includes not allowing any existing tax incentives to expire or be terminated. Many of these incentives are vital parts of business plans across our state and have helped pave the way for job creation and business growth.
It is also time for state lawmakers to finally act on the concerns of the business community. In good economic times, these concerns were unfortunately pushed aside. Today, it’s vital they are addressed. If we don’t, our economic problems will only get worse.
Local business leaders don’t want a bailout – they just want government to untangle many of its costly and time-consuming rules and regulations. Problems with our state’s one-of-a-kind business and occupation tax, new stormwater run-off rules, Growth Management Act and unemployment insurance and workers’ compensation systems are but a few of these.
Not only are these systems difficult for our existing employers, they send the wrong message to outside businesses that might be interested in relocating to our state.
A lot has been made of so-called stimulus plans. Gov. Chris Gregoire’s “Washington Jobs Now” plan would accelerate construction and transportation projects in our state capital budget. While I support these shovel-ready infrastructure improvements, they aren’t going to do enough for the worker who just lost his or her job at HP.
We must be sure that any funding that comes to our region is in the form of a true stimulus plan – not just a spending plan. Despite earlier federal bailouts and rescues, home prices have plummeted and banks are asking for more money. We must get it right this time. If we are going to use taxpayer dollars, we need to provide something of lasting value and, most importantly, allow families and employers to keep more of what they earn.
A true stimulus package is about empowering employers. For example, local business leaders have told me they want to utilize tax increment financing options to drive economic development. I agree with them. The focus must be on creating family-wage jobs that are sustainable and lead to future economic growth.
The road ahead won’t be easy, but we will reach our destination. We must brace for the worst and do everything in our power to prevent it. I am optimistic. Adversity has always brought the best out in our communities, and our state will emerge stronger from its budget and economic decisions this year.
I encourage you to stay tuned, be involved and contact me at herrera.jaime@leg.wa.gov if you have any ideas or questions.
