In light of the 9 Dec. 2009 (today) Gregoire proposed budget, I have made this PowerPoint. I find it ironic that today the Washington Policy Center warned that the state's bond rating was in trouble at http://bit.ly/6r5qkx just a short while after I-1033 was deemed a threat to it. Can't be a one-way street folks, I voted NO on that initiative and I hope we in Washington State can balance our budget better in the future.
Let's remember that Moody's noted that:
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What would change the rating - UP
*Sustained trend of structural budget balance, plus restoration and maintenance of strong reserve levels.
*Economic expansion and improved industry diversification.
*Reduction of debt ratios to levels closer to Moody's 50-state medians.
What could change the rating - DOWN
*Deeper and longer recession that restrains consumer confidence, leading to prolonged revenue weakness and employment erosion.
*Protracted structural budget imbalance.
*Increased reliance on one-time budget solutions.
*Cash flow narrowing, leading to strained liquidity.
*Failure to adopt plan to cover expenditures once federal fiscal stimulus monies are no longer available.
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Clearly raising taxes, "protracted structural budget imbalance" and "Increased reliance on one-time budget solutions" is not the way forward unlike what Gov'r Gregoire pushed today on Dec. 9th, 2009. Instead, "sustained trend of structural budget balance, plus restoration and maintenance of strong reserve levels" as well as "reduction of debt ratios to levels closer to Moody's 50-state medians" (read spending cuts) is best.
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Speaking Of Credit Ratings Power Point Show
1. Speaking of Credit Ratings… One small businessman’s rebuttal to the 2010 Gregoire Supplemental Budget
2. Didn’t we just discuss a short while ago… On October 8th, Washington State Treasurer Jim McIntyre warned of the consequences of passing I-1033 (which thankfully did not). The Treasurer warned, “The credit rating agencies have expressed "general concern" about the initiative … Which I read is that this could affect the credit rating.”
4. The credit agency Moody’s also did say… What would change the rating – UP Sustained trend of structural budget balance, plus restoration and maintenance of strong reserve levels. Economic expansion and improved industry diversification. Reduction of debt ratios to levels closer to Moody's 50-state medians.
5. Moody’s also warned Washington State… What could change the rating – DOWN Deeper and longer recession that restrains consumer confidence, leading to prolonged revenue weakness and employment erosion. Protracted structural budget imbalance. Increased reliance on one-time budget solutions. Cash flow narrowing, leading to strained liquidity. Failure to adopt plan to cover expenditures once federal fiscal stimulus monies are no longer available
6. Yet, Governor Gregoire desires to… Keep on the roller-coaster budget Raise taxes, which will cut consumer confidence and be unstable due to almost certain attempt to overturn tax increases at voting booth Submit a budget that is in deficit come 2011
7. Also Chris McGinn of the State Treasurer’s Office Warned During the I-1033 Debate That… “The ratings are based on an analysis of a wide range of indicators. Typically, no single data point or issue is enough to cause a rating change, but each is part of the cumulative effect.”
8. Perhaps there’s a more intelligent solution No more voter approval of Tim Eyman initiatives, generally speaking No more “roller-coaster” budgeting No to higher taxes in a recession without directly sought voter approval No to obstructionism on reform such as competitive bidding, 72-hour budget timeout & six-year budget forecasts Yes to Priorities of Government Yes to balanced biennium budgets & decent reserves Yes to taxes as a last resort, not the only one Yes to stability, not chaos!
