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Tuesday, March 5, 2002
Senate budget cuts 1,500 jobs Democrats' plan leans on job cuts, higher health care premiums THE OLYMPIAN
OLYMPIA -- About $654 million in state programs and a net 1,500 state jobs would be cut under the Senate Democrats' proposal to plug a $1.6 billion gap in the state budget.
Senate Democrats will release details of their proposed budget today.
The proposal includes $88 million more in cuts than Gov. Gary Locke's proposed budget and more than three times the job cuts, but it would preserve most State Library functions.
State employees, including college teachers, would receive 1.5 percent pay increases instead of the 2.6 percent scheduled raise.
Health premiums
Their share of health premiums would rise to 20 percent and their co-payments for doctor's-office visits would rise from $10 to $15.
Just two years ago, workers were paying as little as 6 percent of health care costs.
State Sen. Lisa Brown, D-Spokane, author of the budget proposal, acknowledged that for lower-paid state employees, the rising health costs would largely wipe out the 1.5 percent salary increase.
Brown said legislative budget experts knew that rising health insurance costs would eventually lead to higher shares for state workers, but that the state's budget situation escalated the problem.
Many spending cuts would be across the board, and education programs would lose about $100 million.
Union reaction
Reaction from state employee unions was swift.
"We at least need an increase that will keep up with the cost of living," said Diana Parkison, a Health Care Authority employee and activist with the Washington Federation of State Employees Local 443. "Puget Sound Energy doesn't look at my bill each month and say, 'You're a state employee and we know you're not getting a pay raise, so we're not going to stick you with a rate increase.' "
"What this is going to do is harm the front-line employees," said Lynn McKinnon, head of government relations for the Washington Public Employees Association. "It sends a clear message that they're not as valuable."
State workers noted that the Senate budget plan maintains 3.6 percent cost-of-living raises for teachers required by Initiative 732. Teachers union officials argue that the elimination of three paid teacher preparation days effectively drops that to 2 percent.
Among other provisions of the Senate Democrats' proposal:
-About $247 million in Emergency Reserve money would be tapped, leaving about $306 million in total reserves.
-New revenue of $83 million would come from a Big Game multi-state lottery, hiring of new Department of Revenue tax-compliance auditors, and closure of about three tax exemptions. Closed exemptions would include a $4 million break on sales taxes enjoyed by out-of-state direct-mail producers.
-Additional revenue of $525 million to $535 million would be derived from selling the state's future tobacco-settlement dollars through a bonding house. The money would be used for health-care costs and other state needs. Of that $105 million would be dedicated to health care costs. The state had expected $310 million from the settlement during 2001-03 alone.
-Subsidies for criminal justice programs for cities and all but the poorest, rural counties would be cut, while some subsidies would be retained for health districts that lost funding when Initiative 695 passed.
-Sentences for drug offenses would be reduced and financial supervision of low-risk, non-violent offenders released from prison would be eliminated.
-Mileage reimbursements for state employees would be reduced and some state parks would be closed temporarily.
-Eligibility would be tightened for personal-care services by nursing home residents.
State workers and other interest groups stung by the possible loss of jobs may propose a voter initiative to tax the investment income of the state's wealthiest citizens.
The idea has been under consideration for some time, said Greg Devereux, executive director of the Washington Federation of State Employees. It became more urgent in light of the Senate plan, he said.
Devereux said an informal coalition of groups including the federation has already commissioned a poll of Washington voters on the proposed "wealth tax." A recent poll in California showed strong support for a similar proposal there, Devereux said.
While details have not been worked out, Devereux said the initiative would likely levy a 1 percent tax on all stock and bond earnings for individuals who earn more than $100,000 a year. The federation has estimated it would raise $1.8 billion in the 2003-05 biennium, he said.
Budget writers in the state Senate will make their supplemental budget proposal public at 9 a.m. today. Copies will be available from the Senate Ways and Means Committee or go to www. leg.wa.gov/senate/scs/wm.
A public hearing is planned at 3:30 p.m. today before the committee, which could approve it Wednesday afternoon. A Senate floor vote could come Friday or Saturday.
Human services advocates are expected to offer reactions to the plan today at 1 p.m. in a House hearing room.
Total spending
- $22.46 billion total spending, about $315 million less than what lawmakers approved last June for the 2001-2003 budget cycle.
- The resulting 6.7 percent increase over 1999-2001 spending is the smallest two-year increase since 1972, Senate Ways and Means Committee staff reported.
On the Web: - Washington State Legislature
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