Budget accord reached

PATRICK CONDON, THE OLYMPIAN

Originally published Wednesday, March 13, 2002

OLYMPIA -- House and Senate negotiators struck a deal on the state budget late Tuesday night that they said will include a small pay raise for state employees, more than $600 million in cuts to state government, $450 million from the state's tobacco settlement and targeted tax increases that will be unveiled this morning.

"We have a budget," said Rep. Helen Sommers, the House Democratic budget chief, as she emerged shortly before 10 p.m. from a closed-door meeting with her Senate counterpart, Democrat Lisa Brown, who for weeks had been struggling to cover the state's $1.6 billion budget shortfall.

On-time finish

Both houses of the Legislature must approve the deal before sending it to Gov. Gary Locke. The budget chairwomen expressed hope that the deal will clear the way for the Legislature to finish on time, at the end of the day Thursday.

Sommers and Brown refused to reveal many details of the deal, saying specific information will be released today.

Sen. Erik Poulsen, one of the negotiators, said they'd close about $30 million in tax exemptions, and raise $40 million from the unidentified tax increase. The state also will raise $30 million by entering the multistate "Big Game" lottery.

House Democrats had proposed a 2 percent salary increase for state workers, while the Senate passed a budget with no increase for state workers this year. Brown said the deal "splits the difference."

"All we're being told is it's very creative and it's very different," Greg Devereux, director of the Washington Federation of State Employees, said of the pay plan.

The budget will assume the state receives about $150 million in Medicaid reimbursement from the federal government, Sommers said. The state has not actually received that money, and critics have argued it's irresponsible to use it in a budget.

On the Web:

- Washington State Legislature

- Washington State Treasurer

- Gov. Gary Locke

Sound Off at TheOlympian.com: How do we weather Washington state's budget crisis?

The Olympian Copyright 2002

back to Legislature 2002 index