OLYMPIA, Wash. (AP) — As state lawmakers work to finalize their proposals for the next two-year budget, Washington’s chief financial officer says they must resist the lure of “felony gimmicks” that address short-term fiscal needs but create long-term liabilities.
State Treasurer Jim McIntire says he’s particularly concerned that lawmakers will resort to borrowing against expected future revenues, or securitization, to help offset the state’s estimated $5 billion deficit for the 2011-2013 budget. He says a securitization strategy adopted in 2002 has since taken vital money away from education and health services.
McIntire’s concerns have been echoed by Gov. Chris Gregoire. She told reporters last week that if recent rumors of securitization are true, “somebody needs to tell me so I can say no.”
Leaders from the House and Senate have given no clear indication of when they will unveil their budget plans.
