House slowed by pension surplus news

PATRICK CONDON, THE OLYMPIAN

Originally published April 15

OLYMPIA -- The Legislature's complicated financial picture grew even denser last week when House budget writers learned that a state pension fund surplus earmarked as a possible source of funds had shrunk in half.

The Senate budget for 2001-03 approved a few weeks ago had used $250 million from what it believed was a $1 billion pension fund surplus to pay for state employee salary increases and other costs. But the state's actuary told the House Appropriations Committee that stock market declines had shrunk the surplus to $500 million.

The news prompted the Democratic and Republican co-chairmen of Appropriations to publicly question the wisdom of raiding the depleted fund. The news further delayed the release of the long-awaited House budget, which now may come out as late as the end of this week.

With the regular session set to adjourn just two days later on Sunday, it now appears the Legislature will have to go into overtime with a special session.

Other highlights from the Capitol last week:

-The Senate approved locating a sex-offender halfway house on McNeil Island, despite strong protests from Pierce County lawmakers.

Gov. Gary Locke had proposed the 36-bed, $5 million facility in order to comply with federal court rulings that compel the state to provide a less restrictive setting for sex offenders who have completed treatment at the state's Special Commitment Center, which is also on McNeil Island.

Residents of the halfway house will be able to leave freely to attend jobs or school. The bill included language that will give the state more power to keep sex offenders in prison longer if they are deemed to be a continuing threat.

The House still must approve the bill.

-A bill designed to address longtime complaints about the state's water rights was approved by the House. The bill aims to streamline the process critics say has led to ridiculously long delays in granting water permits.

Supporters of the bill called it crucial for the economy of Eastern Washington, where agriculture and development have been slowed by lack of access to water.

Critics of the bill argue it doesn't address concerns over water conservation and fish protection. Even supporters admit it is only a first step in dealing with the state's pressing water problems.

The bill is set for a hearing Monday in the Senate Environment Committee, headed by Chairwoman Karen Fraser, D-Thurston County.

-Even as lawmakers muddled through their penultimate week, workers who belong to the Washington Federation of State Employees voted in favor of a strike to protest what they say is an insufficient pay and benefits package from the Legislature.

With the approval of more than 79 percent of union members who voted, union leaders immediately called a four-day cooling-off period, during which time Attorney General Christine Gregoire has pledged to mediate the concerns of the state workers with legislative leaders who are struggling to draft a 2001-03 budget.

The cooling-off period is set to end at 12:01 a.m. Wednesday -- which is perhaps the same day the House budget is to be released.

Union leaders have said that if the House budget doesn't meet their concerns about pay and benefits, they will immediately launch rolling strikes and other job actions until they get what they want.

The Olympian Copyright 2001

back to main Legislature 2001 index