EDMONTON: In response to the Alberta government's Second Quarter Fiscal Update, the Canadian Taxpayers Federation (CTF) repeated its call for a spending control law like that in Washington state.

CTF-Alberta director John Carpay credited Alberta's fiscal success to legislation requiring balanced budgets and debt repayment. "The government must build on this legacy of success, by passing spending control legislation, to provide budgeting stability and to enable scheduled tax cuts in 2002 to proceed."

Since July 1, 1995, Washington state has imposed a state expenditure limit on its General Fund. This law indexes the growth in government spending to a "fiscal growth factor" based on inflation and population growth. The fiscal growth factor is applied to the previous state expenditure limit, and used to set a new state expenditure limit for the upcoming budget. The fiscal growth factor also applies to fees and licences, unless the Legislature specifically votes for a larger increase. The law was proposed to voters as a citizens' initiative in 1993, and the majority voted in favour of it.

The state expenditure limit may be exceeded upon declaration of an emergency by a law approved by a two-thirds vote of each house of the Legislature and signed by the governor. The law must set forth the nature of the emergency, which is limited to natural disasters that require immediate government action to alleviate human suffering and provide humanitarian assistance. Any additional taxes imposed to deal with the emergency stay in place only until thirty days after the next general election, unless an extension is approved at that general election.

Washington's law also requires voter approval for any tax increases or new taxes. This applies to expanding the base for any taxes, or increasing the rate of any taxes, including sales and use taxes, property taxes, business and occupation taxes, and fuel taxes. In contrast, the Alberta Taxpayer Protection Act only requires a referendum to be held on the issue of introducing a sales tax; other new taxes or tax increases do not require voter approval.