Lowry Suggests Tipping Spending Cap Voter-Imposed Spending Lid Could Be Trouble For State

Washington’s voterimposed spending limit could spell trouble - with school, college and prison demands escalating faster than Initiative 601 allows, Gov. Mike Lowry said Monday.

The outgoing Democrat made no specific proposal, but strongly suggested that the Legislature consider amending the initiative to funnel more money into the crunch areas.

“Something has got to give,” he said in briefing papers prepared for newspaper editors and business groups.

Gov.-elect Gary Locke, a fellow Democrat, also has called for changes in the spending cap.

But House Speaker Clyde Ballard, R-East Wenatchee, threw cold water on the idea. There is no chance that the Republican-controlled House of Representatives and Senate would approve a change in the initiative, which holds state spending growth to inflation plus population growth.

That is currently running about 4 percent a year.

Lowry, who met with editorial boards and business leaders in Seattle, said state spending and payrolls have leveled off and that the economy is booming, thanks in part to tax incentives for new business development. But he said the economy and state budget face a squeeze play from I-601.

“Today’s budget needs aren’t that simple,” he said in the briefing papers. “I-601 doesn’t account for the fact that some parts of our state’s population are growing faster than others or that policy changes such as tougher prison sentences create additional demand. …

“In short, it is simply not possible to maintain the current level of services for a growing population of college-aged students, the elderly, and kids from low-income families, and make adjustments for inflation (in salaries and other costs) under the limitations of I-601.”

If the initiative is not amended, higher education is “extremely vulnerable” since it doesn’t enjoy the constitutional protection that the public schools do, said Lowry press secretary Jordan Dey.

Lowry may propose legislation before leaving office in January, “but the important part is to start the discussion, to have people understand what the choices are, the potential of a tremendous impact on our educational system,” Dey said.

During his campaign to succeed Lowry, Locke made no secret of his goal of lifting the 601 limit to reflect actual K-12 and higher education enrollment. In a post-election news conference, however, he seemed to back away from that as an immediate goal, given GOP control of both houses of the Legislature. He is on vacation and could not be reached for comment Monday.

In an interview Monday night, Ballard said exemptions for education, higher education and prisons would render the initiative meaningless.