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Supermajority Law Debate: History Favors A Balanced Approach

Posted by Andy Nicholas at Sep 06, 2012 12:00 PM |

There was a time – not so long ago – when bipartisan majorities of legislators worked together in the face of tough times.

They responded to recessions with a recipe of policies that worked – a balanced mix of targeted cuts in spending and some tax increases. That reasonable approach lessened the severity of past downturns by maintaining crucial investments in health care, education, child care, and job training while the economy recovered.

But since the state’s first “supermajority” law was enacted in 1993 – meaning that taxes couldn’t be raised unless two-thirds of legislators approved – Washington state has been forced to endure an over-reliance on the cuts side of the equation. The result:  damaging cuts to public services that cost jobs and make economic recovery take longer.

Some put forward an odd, history-defying  argument (see here and here) that policymakers would have relied on a cuts-only approach to the most recent recession even without the supermajority law. Those who say that seem to suggest  the law isn’t necessary because raising taxes is already extremely difficult.

But the record shows otherwise. Before the supermajority law legislators were able to unite behind raising additional revenues when the only alternative meant unacceptably deep cuts to core public health, education, and safety services. For example:

  • Facing a severe recession in the early 1980s, policymakers (including Republican Governor John Spellman), enacted spending cuts and tax increases to preserve essential health and education investments. The package included a one-cent sales tax increase as well as more than $230 million in budget cuts.
  • During the recession of the early 1990s, Washington state faced a $2.1 billion shortfall between the amount needed to maintain key public investments and available tax revenues needed to pay for those investments. Again, legislators responded with a balanced approach consisting mainly of spending cuts, drawing upon reserves and funds other accounts, and some Businesses and Occupation (B&O) tax increases.

That’s a sharp contrast from the last time around, when the supermajority law in essence took important tools out of the hands of legislators and left them fumbling for a solution that only made things worse.

The bottom line is that without the overly-restrictive supermajority law, history clearly shows that Washington state has been able to come together during recessions and negotiate reasonable solutions to economic problems.

For more information on the toll the supermajority law has taken on Washington’s economy check out our latest policy brief, "Supermajority Law’s Damaging Legacy: I-1185 Would Renew a Policy That Has Eliminated Jobs and Thwarted Economic Recovery in Washington State."

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HIGHLIGHTS

Policy Agenda

We have released Framework for Prosperity, a comprehensive policy agenda for the 2013-2015 biennium. We make specific recommendations for targeted investments that would bring our state closer to providing prosperity for all Washingtonians. We also provide revenue options to help pay for those investments. Click on the image below to download a PDF of the agenda.

 

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Catch the Budget Beat

During the 2013 legislative session we will host regular Budget Beat calls and and podcaBudget Beatsts to bring you updates and breaking news from Olympia, timely policy analysis, and share resources and upcoming community events.

Check out the archive of Budget Beat calls and podcasts. 

Join the Budget Beat calls every other Friday at noon!  

Budget Matters 2012

Our first annual policy conference was a great success! More than 300 people came together to hear from policy makers, national and state policy experts, and community leaders from around the state. Our special lunch speaker was Van Jones.

Van jones at Budget Matters 

Here are some of the PowerPoint presentations from the break-out panels.

-The Affordable Care Act: Maximizing the Opportunities

-Building a Prosperity Economy in Washington State

-Building a 21st Century Revenue System

-Effective Messaging Strategies

For pictures and more information, check out our event page.