H-3617              _______________________________________________

                                                   HOUSE BILL NO. 2839

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Silver, Ballard, Beck, Hankins, Chandler, Smith, Tate, Ferguson, Bowman, Wood, Forner, Moyer, Youngsman, Brumsickle, Fuhrman, Horn, Padden, McLean, May and Wolfe

Read first time 1/24/90 and referred to Committee on Appropriations.

AN ACT Relating to greater fiscal responsibility in the budgeting process; adding a new section to chapter 43.88 RCW; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 43.88 RCW to read as follows:

          (1) The total appropriation for the biennial operating budget, as passed by both the senate and the house of representatives, shall not exceed the February forecast by the Washington state economic and revenue forecast council.  The biennial operating budget may not be seven percent above the council's biennial estimate for the rate of inflation, as measured by the implicit price deflator.

          (2) A supplemental operating budget appropriation, as passed by both the senate and the house of representatives, shall not exceed the council's February forecast, when combined with the biennial operating budget appropriation.  The combined supplemental and biennial operating budgets' appropriations may not be greater than seven and one-half percent above the council's biennial estimate for the rate of inflation, as measured by the implicit price deflator.

          (3) Levy equalization funds will be excluded from the calculation which establishes a maximum lid for expenditures per biennium.  The purpose of the budgetary lid is to provide greater fiscal responsibility and integrity to the budgetary process; and to establish an expenditure lid which would act similar to the state statutory debt capacity.

          (4) To pass a biennial operating budget greater than seven percent above the estimate of inflation will require a sixty percent vote of approval by both the senate and the house of representatives.

          (5) If a supplemental operating budget, when added to the biennial operating budget, is greater than seven and one-half percent above the estimate of inflation, a sixty percent vote of approval by both the senate and house of representatives is required.

NEW SECTION. Sec. 2.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.