State Senate approves plan for deficit

  • By Jerry Cornfield Herald Writer
  • Tuesday, April 19, 2011 12:01am
  • Local News

OLYMPIA — State senators Monday overwhelmingly approved their bipartisan blueprint for erasing a multibillion-dollar deficit in the next state budget.

The proposal crafted by Democratic and Republican senators calls for cutting pay of teachers and state workers and spending less on many education, health care and human service programs to fill the $5.3 billion budget hole.

“This is a really big deal,” said Sen. Jim Hargrove, D-Hoquiam, of the bipartisan effort which passed 34-13. “The Senate has come together to do something historic.”

Two senators from Snohomish County — Republican Val Stevens of Arlington and Democrat Maralyn Chase of Edmonds, voted against the budget.

Stevens said the cuts didn’t go deep enough, noting the state is expected to take in $4 billion more in tax revenues in the next two-year budget than the current one.

“That’s the reason,” she said. “The citizens of the state cannot afford all the spending.”

Sen. Paull Shin, D-Edmonds, said he didn’t like the budget but voted for it “because we have no other choice” at this point.

Shin introduced a bill last week to raise the sales tax by a penny for two years to generate $2 billion for education and social services. That bill has yet to receive a hearing and is unlikely to emerge from the Legislature this year.

With Monday’s vote, the Senate and House have now each passed a proposal for the 2011-13 biennium that begins July 1.

There are differences to iron out and a deal is unlikely to be reached by the scheduled end of session Sunday. As a result, Gov. Chris Gregoire is preparing to announce later this week when to call lawmakers back to finish work.

Overall, the Senate plan spends $32.1 billion between July 1, 2011, and June 30, 2013 and leaves $738 million in reserves.

Senators get rid of the red ink with $4.8 billion in spending reductions and $455 million in transfers into the general fund from the capital budget and other accounts.

Unlike the House, the Senate does not book any revenue from a proposal to privatize the state liquor distribution system. The House assumed collection of $300 million from this idea which has yet to be approved by either chamber.

Senators save slightly more than $1 billion by suspending investments in the costly voter-approved initiatives for teacher pay hikes and smaller class sizes in all grades.

Their proposal includes a 3 percent pay cut for teachers, state workers and college employees. It slashes spending on higher education while counting on double digit increases in tuition to help universities and community colleges make up some of the lost revenue.

The Senate sustains the Basic Health Plan and Disability Lifeline program though with thousands fewer enrollees in both. Its plan also axes funds to state parks while creating a new $30 annual pass and $10 daily entrance fee to fund operations of the parks.

While senators add $6 million to improve safety of corrections officers, they endorse releasing hundreds of inmates up to 60 days early to curb costs in the Department of Corrections.

One of the more intriguing moments in Monday’s Senate debate came when Sen. Rodney Tom, D- Medina, sought an amendment redirecting dollars for training health care workers under Initiative 1029 into education to protect new teachers from the pay cuts.

Had he succeeded it might have blown up the budget deal because several Democratic senators opposed the move and were said to be primed to reject the budget if the amendment passed.

It didn’t, ensuring the goodwill wasn’t lost for now.

Senate Minority Leader Mike Hewitt, R-Walla Walla, said he was skeptical it could happen. But the final product, he said, met the GOP goals of not spending beyond the means of the state and making lasting reforms in many programs.

“It’s marvelous to work together,” he said.

Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com.

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