OLYMPIA — House Democrats rolled out the latest version of a general operating budget this morning, along with several changes to state programs, but conceded they didn't know whether this exact plan will break the ongoing stalemate.
“We actually don't know if we have the votes for all this,” Rep. Ross Hunter, D-Medina, chairman of the House Ways and Means Committee, said.
House Majority Leader Pat Sullivan, D-Covington, called it an effort to “get the ball rolling” and address concerns from Republicans that have been discussed in negotiations, rather than the final package of budget and supporting laws that will pass.
“It's mostly an effort to keep the process moving,” Sullivan said. The clock is ticking. The last day of the special session is Tuesday, and in between are Good Friday, the beginning of Passover, and Easter.
Hunter said he assumes there are enough Democratic votes to pass the budget in the House, but some of the other changes that the budget relies on — changes to the state's early retirement plans, reduced class sizes that are on the books from a statewide initiative but often cancelled to cut costs, new rules for balancing the budget over two and four years — will need Republican votes to pass. Although Democrats and Republicans from both chambers have been in negotiations for three weeks, there's no indication the GOP will sign on.
In a report on Northwest News Service, Joe Zarelli, the top Republican on budget matters in the Senate, referred to reforms the Democrats were proposing as “dust.” Senate Republicans, and Democrats who joined with them during the regular session to pass a very different budget, scheduled a press conference for 12:30 p.m. For a report on that press conference, click here.
House Democrats also said they would introduced a pared down version of the Capital Budget, which they refer to as the Jobs Plan, that is nearly $1 billion. It's that plan that has major state construction project, some of them funded by state bond sales and others by special accounts. On the list of projects from various accounts is some $37 million to complete the Biomedical and Health Sciences building at Washington State University's Riverpoint campus in Spokane.
Rep. Hans Dunshee, D-Snohomish, chairman of the Capital Budget Committee, said it was time to take advantage of low interest rates in the bond market to build the projects. All the projects listed would employ more than 22,000 people, most in the hard-hit construction sector.
But the Capital Budget is tied in part to the General Operating budget, which revenue projections and scheduled expenses say has a hole of more than $1 billion. Legislators struggled through the regular 60-day session and are 23 days into their 30-day special session, trying to fill that hole.
In past budget plans, Democrats have suggested an accounting shift that delays a payment to the state's school districts by a few days, moving it into the next biennium so it doesn't show up on the state's books. Republicans have criticized that as a gimmick, and the latest budget drops that.
It also does not have a Republican proposal to skip a payment to the state's pension plans, which Democrats have derided as a gimmick and did not include in previous budgets. Democrats are proposing one shift to the state pension system, eliminating for new employees an option for early retirement that was approved in 2007, allowing retilrement with a full pension at 62 for those with 30 years of service; Republicans also wanted another early retirement option passed by the Legislature in 2000; Democrats don't have that, nor are they calling for the closure of some other plans. That cuts estimates for long-term savings about in half, to $1 billion over some 20 years, but doesn't really help or hurt the General Fund's bottom line this biennium.
Instead of the delayed school payment or the skipped pension payment, House Democrats embrace a proposal by Gov. Chris Gregoire to modernize the system the state uses to pay cities and counties the money collected for sales tax. That shifts about $238 million into a working reserve, and boosts the budget's bottom line.
The budget has no tax increases, and no reductions to tax credits or exemptions offered to busineses. It makes no changes to public schools or state universities and colleges, and drops a proposed 5 percent increase in Temporary Assistance to Need Families payments.
The package of reforms that will have a hearing this afternoon in the House Ways and Means Committee includes a new law that would require a two-year balanced budget and propose a way to create a four-year balanced budget. But that could fall short of a proposal by Senate Republicans and some conservative Democrats for a four-year balanced budget amendment.