From the Director: Local Government Fiscal Health - Legislature Concerned
Local governments are being heard here in Olympia.

Whether as a result of the State of the Cities report, lobbying by local officials, or responding to AWC’s lobbyists, key legislators are recognizing that many of their cities are in poor financial health, and they’re starting to respond.

This past week, the House Finance Committee heard testimony from city and county officials regarding their fiscal difficulties. Next week, the Senate Ways and Means Committee will have a work session on "the financial health of local government". These exploratory hearings are an opportunity for the city and county associations to have local officials describe the "real world" of local government distress. Many legislators, on both sides of the aisle, have approached AWC staff to express concern about their cities’ financial problems. More so than in past years there has been a genuine recognition that their local governments are in trouble and that they want
to help.

State Fiscal Problems Worsen

As has been reported previously, the state’s fiscal house is still not in order. After 4 years of revenue shortfalls, the forecast for next year is for another $1.8 billion dollar "hole" in the state budget. To make matters worse, the State Supreme Court has just handed down a unanimous decision invalidating the state estate tax. That decision will add $431 million to the shortfall - $152 million in refunds and $279 million in reduced revenues. The $431 million loss would more than offset any upward revenue forecast anticipated in March, and increases the likelihood of a revenue package to balance the budget.

Regardless of the state’s fiscal difficulties, it remains critical that local officials remind their legislators of their city’s financial problems. Unless we continually remind legislators about our situation, the Legislature will hide behind their problems and avoid addressing those of local governments.

In Closing

We are making progress convincing many legislators that we must have a partnership to enhance the quality of life in our state. They’re starting to recognize that "healthy communities can encourage a healthy economy". They’re sensitive to the requests of their local officials and need to be further encouraged to promote economic development. The City Legislative Action Conference (Feb.16-17) is a critical opportunity to visit with your legislators to tell them about the needs of your city. I would encourage all those who’ve not registered to reconsider, and sign up to deliver their messages to their legislators and to hear first hand from the Governor, legislative leaders, and others.

 
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