Senate OKs budget with no general tax increase

BRAD SHANNON, THE OLYMPIAN

Originally published Sunday, March 10, 2002

OLYMPIA -- Senate Democrats, aided by two Republicans, narrowly passed a $22.5 billion budget plan Saturday that includes the controversial sell-off of future tobacco-settlement payments for up-front cash.

Gov. Gary Locke said he was encouraged by the passage of a "solid budget" that avoids a general tax increase. He expressed hope the House and Senate can agree to a single budget by Thursday, the scheduled final day of the 60-day session.

Supporters of the budget said it will cause pain but avoid a politically difficult increase in general taxes.

"A lot of people are going to suffer. ... A lot already are," said Sen. Lisa Brown, the Spokane Democrat who wrote the spending plan for 2001-03 that is being drastically revised in response to heavy revenue losses since the Sept. 11 attacks.

In floor speeches on the budget and on the tobacco-cash issue, Brown said repeatedly that her budget cuts money from every agency and every program paid for with state dollars.

"I've said no to so many of my friends, I don't know that I've got any left, frankly," she said.

The budget would freeze pay for state workers, nearly 25,000 of them in Thurston County, while giving 3.6 percent pay increases to K-12 education employees. It also would cut more than $650 million to previously authorized programs, which could result in 1,500 fewer state jobs across Washington.

It also would increase tuition at colleges and universities, cut spending for K-12 education programs and reduce health care and prevention programs for the poor.

Republicans warned the state was making a bad move with its decision to sell off a quarter of its future tobacco revenue stream, exchanging it for $525 million in ready cash. Sen. Dino Rossi, R-Sammamish, predicted that lawmakers will be back in July after the next revenue forecast shows another downturn.

"In fact, we've taken our revenue stream to the pawn shop and said, 'Can you give us some dough?' " said Sen. Dan McDonald, R-Bellevue.

"In my household, when we spend $1.4 billion more than we take in, that's a problem," said Sen. Don Benton, R-Vancouver, one of many Republicans who said the state needs to lower its costs in tough times, the same as any family or business would. He called the budget a "setup" for a tax increase in 2003.

"Do I like the budget? No," replied Senate Majority Leader Sid Snyder, D-Long Beach, who said he was sickened by the choices.

The 26-23 vote to approve the budget came after Democrats turned back GOP efforts to cut $303 million in travel, equipment and general supply costs from agency budgets -- beyond the $165 million in cuts the Democrats already foresee in agency and higher education overhead. Republicans needed 30 votes to make their amendments stick, but repeatedly fell a few votes short.

Republicans Alex Deccio of Yakima and Shirley Winsley of Fircrest joined the Democrats to approve the budget. Deccio hedged his support on a $72 million allocation for nursing home care that Locke had proposed to cut.

One amendment passed, adding $10 million in aid to cities that were hit hardest by Initiative 695's repeal of the car excise tax. That was sponsored by Winsley.

Democratic Sen. Tim Sheldon of Potlatch and Republican Sen. Dan Swecker of Rochester both voted against the budget, as well as against using the tobacco money.

Sen. Karen Fraser, D-Thurston County, voted for the budget and use of the tobacco money. Despite her vote, Fraser said state employees will not receive adequate pay and worthy government services will be reduced, including health care for the poor.

"It's a sad time in our state in terms of financing for state government and local government," Fraser said.

The budget now goes to the House, where lawmakers have offered a similar spending plan that also would bond a quarter of the state's future tobacco-settlement dollars.

There are major differences between Senate and House budget positions on K-12 education, higher education tuition rates, state employee pay and the degree of cuts to human services programs. State employees would see their health insurance premiums go up by less in the Senate plan. But while the Senate freezes state worker pay, the House increases it by 2 percent.

"We're negotiating," Brown said.

"Things are moving along. There's a lot of negotiating going on today," said House Speaker Frank Chopp, D-Seattle.

Lawmakers are hoping to finish their work Thursday. The only bills they must pass by law are those for the operating and construction budgets, both of which have cleared the Senate and are awaiting action in the House.

Lawmakers also are under pressure to adopt a transportation funding proposal to fix clogged highways and spur an economic recovery. The Senate could approve its $8.2 billion plan including a 9-cent increase in the gas tax as soon as Monday, sending it to the House, said Senate Democratic Caucus Leader Harriet Spanel, D-Bellingham.

Spanel predicted there will be "plenty" of Senate votes to approve the transportation-tax package without the referendum clause that House Democrats and Republicans both say is essential.

The House remains committed to sending the package to the voters. Chopp said there are not enough votes to pass the taxes without a referendum, which could come as soon as May or June.

On the Web:

- Washington State Legislature

- Washington State Treasurer

- Gov. Gary Locke

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