Wash. Constitutional Amendment Would Set Aside Savings During Economic Boom
A proposed constitutional amendment would require Washington to save excess tax revenue gained during an economic boom.
The Washington Legislature has placed a question on November's ballot that would require the state to save more money when the economy is booming, the Seattle Times reports.
The constitutional amendment would require that, if tax collections for one year increased by more than one-third than they had during the previous 10 years on average, the state must set aside some of that extra revenue. Three-fourths of those saving must be funneled into the state's rainy-day fund, the Times reports.
State Sen. Joe Zarelli told the newspaper if this rule had been in place during the economic growth the preceded the recession, the state would be much more capable of handling its current budget shortfalls.
According to the Times, a recent poll showed that 43 percent of Washingtonians favor the measure, 19 percent were opposed and 38 percent were undecided.
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