To modify the state expenditure limit. While current law limits the growth in state general fund spending to the average rate of state population increase and inflation during the prior three years, this bill changes that standard to ninety percent of the growth rate in Washington personal income. The bill also eliminates the requirement for a two-thirds majority to raise taxes (established by Initiative 601 in 1993) and changes it to a simple majority, and adds an emergency clause that prevents voters from appealing the bill via referendum.   Official Text and Analysis.

To make a technical change that corrects language in the bill.

To change the limit to 90% of Personal Income Growth in Eastern Washington. (MOOR 006).

To remove the emergency clause. (MOOR 005).

To modify the state expenditure limit and eliminate the need for a 2/3 majority to raise taxes.

By the House Appropriations Committee, to strike provisions of the bill relating to the calculation of the expenditure limit and the expenditure limit committee. It revises the existing supermajority legislative vote requirement for bills that raise state revenue. Between the effective date of this act and June 30, 2007, a 2/3 vote of both houses is not required for legislative actions that raise revenue if the state expenditures do not exceed the state expenditure limit. Instead, a majority vote is required for those actions.

To require a 3/5 vote of both houses of the Legislature before taxes may be increased. It takes effect if HJR 4209, which would amend the state Constitution to require a 3/5 vote for tax increases, is submitted to and ratified by the voters.

To remove the emergency clause and immediate effective date.

To strike the emergency clause and the immediate effective date. It adds a referendum clause requiring the act to be submitted to the voters in November.

To removes the underlying amendments and provisions regarding the supermajority vote and the underlying bill's provisions regarding the supermajority vote and calculation of the expenditure limit. It revises calculation of the limit as follows: The "base year" for calculating the expenditure limit is set as fiscal year 2005; the fiscal growth factor calculation is based on the rolling average of IPD inflation and population growth for the three years prior to the year for which the limit is adopted, e.g., 02, 03, and 04 for the FY 05 limit. It revises the "two-way street" limit adjustment calculation by permitting upward adjustment to the limit only where the cost of a program is shifted to the general fund; the legislature requires the deposit in the general fund of an ongoing revenue source that would otherwise be deposited in the account that previously supported the program, in an amount equal to the cost of the program; and the redirection of the revenue source takes place on the same date as the program shift. Shifts of moneys alone do not result in upward adjustment of the limit. For purposes of adjusting the limit, defines program shift as the shift of any portion of a program's cost, including program growth. It eliminates the transfer from the Emergency Reserve Fund to the Multimodal Transportation Account. It retains the underlying bill's changes to the Expenditure Limit Committee membership by adding the ranking minority members of House Appropriations and Senate Ways & Means to the Committee.

To establish that between the effective date of this act and June 30, 2007, a 2/3 vote of both houses is not required for legislative actions that raise revenue if the state expenditures do not exceed the state expenditure limit. Other changes effective July 1, 2007: The amendment bases expenditure limit growth on ten year average of state personal income growth. It continues rebasing of expenditure limit when actual expenditures are below the limit. When revenue exceeds limit transfers money from general fund to emergency reserve fund in proportion to the general fund share of limited funds. It removes requirement to transfer interest earning of the emergency reserve fund to the multimodal transportation account.

To concur in House amendments.

To modify the state expenditure limit and eliminate the need for a 2/3 majority to raise taxes.