Push on to spare health benefits

PATRICK CONDON, THE OLYMPIAN

Originally published Thursday, March 21, 2002

OLYMPIA -- State employee groups and their allies in the Legislature are pressuring Gov. Gary Locke to preserve $8 million in health benefits in the just-passed budget.

Although the budget contains no cost-of-living raises for state employees in 2002, Democrats in the House of Representatives included $6 million to stem rising health insurance costs as a last-minute concession.

That $6 million would be matched by $2 million from the federal government.

But the House declined to pass a proposed sales tax increase on hard liquor, which left a $40 million shortfall in the budget.

$40 million hole

That means Locke will have to use vetoes to cut $40 million out of the budget, and his budget director indicated last week that the health insurance money could be one thing to go.

"Not receiving cost-of- living increases is bad enough, but employees should be held harmless of this health care cost increase," reads a letter sent to Locke on Wednesday from Sen. Karen Fraser, Rep. Sandra Romero and Rep. Sam Hunt, the three Democrats who represent South Sound's 22nd Legislative District. "Please give state employees the financial support they deserve."

Romero and Hunt nearly held up the entire budget process last week when they demanded some kind of nod to state employees in the face of no salary increases.

Romero and Hunt proposed shifting the $6 million out of a pot of money that was to be used for a program to retain state employees.

"We worked darn hard to get that little bit of money in there," Hunt said.

The governor is considering a number of options for trimming the $40 million, and nothing is off the table right now, Locke spokesman Pearse Edwards said.

Locke has until April 6 to make his decision.

Lawmakers often personally lobby Locke as he prepares to wield his veto pen, but only on issues they consider very important, Romero said.

"You want it to carry some weight," Romero said, adding that she was ready to vote for the liquor tax increase. "It would have solved a lot of problems," she said.

Unions lobbying

State employees union officials have encouraged their members to write and call Locke's office to press their case as well.

Union leaders already met with budget chief Marty Brown, and they are ready to meet with Locke.

"It's a very meager budget for state employees, and this is a meager amount of money in comparison to everything else," said Bev Hermanson, a lobbyist for the Washington Federation of State Employees.

So far, Hermanson said, Locke administration officials "haven't given us reason to be hopeful, but they haven't given us reason to despair yet, either."

It's not yet clear how much the $6 million would hold down health care costs for the average employee. Under the budget language, the state's Public Employee Benefits Board would control the pot of money and would have to decide how to use it.

"We hope they'd use it in a targeted fashion that would help the largest number of employees as possible," said Lynn McKinnon, lobbyist for the Washington Public Employees Association.

Other cuts possible

If Locke decides to retain the money for health insurance, that means $6 million will have to come from another source, probably one with an equally vocal constituency. Also potentially on the chopping block is a 25-cent-an-hour pay increase for home care workers, state aid to cities and counties, and operating funds for the State Library.

"I wouldn't want to be in the governor's shoes," Romero said.

Still, she wouldn't suggest what to cut instead of the health benefits, Romero said. It was a scramble to find the $6 million in the first place, she said.

"We thought we were OK," Romero said. "This latest thing is a shock, and we certainly don't feel like we should have to go back in and look for another solution."

On the Web:

- Washington State Legislature

- Gov. Gary Locke

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