Lowry Budget Plan Panned By Demos, Gop Gubernatorial Candidates Of Both Parties Tear Into Governor’s Proposal

Gov. Mike Lowry proposed Monday a $93 million supplemental budget some say will sink without a trace in the 1996 Legislature.

High-ranking Democrats called the budget an overreaction to anticipated cuts from the federal government.

House GOP leaders dismissed Lowry’s proposal as “completely unacceptable.”

“It’ll probably just die a quiet death,” said House Majority Leader Dale Foreman, R-Wenatchee.

Lowry would cut taxes by less than half the level recommended by his own party; give state employees a raise; increase the state payroll by 824 workers over the biennium, and restore programs cut by the Legislature just a few months ago.

His spending plan also provides no money for a breakup of the state’s Department of Social and Health Services, a popular idea with many state lawmakers. Instead, he pitches more money at the beleaguered agency.

“He’s still in liberal la-la land,” said Foreman, a candidate for governor in 1996. “This is not a serious budget proposal. It is so far removed from political reality it makes you wonder where he’s coming from. He has to know it is not going to fly.”

The $17.7 billion budget, with its more than $504 million reserve, would be a tough sell in any election year, when lawmakers want to shower voters with tax cuts.

With a nearly $700 million surplus burning a hole in their pockets, lawmakers of both parties figure they can afford to be more generous than the governor.

Both houses have proposed cutting taxes by more than $350 million in the coming biennium by reducing the business and occupation tax on services and adopting a property tax cut.

Those proposals would leave about $300 million in reserve.

Lowry insists more than $500 million in reserves is needed to protect the state from anticipated federal budget cutbacks, which he believes will slice $3 billion from the state budget over the next seven years.

Sen. Nita Rinehart, D-Seattle, chairman of the Senate Ways and Means Committee and another gubernatorial hopeful, said Lowry is “overreacting” to the proposed cuts.

It may be possible to provide some services differently or more cheaply, Rinehart said. “He seems to be assuming some automatic back-filling of state dollars into cuts by the federal government. We don’t make that assumption.”

House Speaker Clyde Ballard, R-Wenatchee, bristled at Lowry’s claim that the $352 million tax cut is irresponsible. “I’ll tell you what’s irresponsible: taking an excess of the taxpayers’ dollars away from them and then finding excuses not to give it back to them.”

Despite the catcalls, Lowry says he’ll fight hard for his budget, with its $93 million in new spending, including 2,300 new enrollment slots at higher education institutions and $24.8 million in services for children.

Lowry wants to hire 132 more social workers and 22 more drug and alcohol counselors at the Department of Social and Health Services to ease growing caseloads.

The governor also would spend $26 million on a .6 percent pay increase for state workers to offset a new requirement that some employees pay a monthly premium for their health benefits for the first time.

“I don’t know how we can afford it,” said Sen. Sid Snyder of Long Beach, head of the Senate Democratic Caucus.

Lowry’s budget also includes an expansion of the sales tax exemption for manufacturers to cover equipment repair and equipment purchased for research and development. He argued the tax cut would create high-wage jobs.

Lowry also would spend $18.6 million on a property tax break for homeowners who make less than $50,000 a year and pay more than 5 percent of their income in property taxes.

Under Lowry’s plan, payment of taxes beyond 5 percent of taxpayer’s income could be deferred until their home is sold.

Lawmakers are pushing more extravagant proposals, including cutting the state share of the property tax in half and capping rates.

The governor said those approaches cost too much and primarily benefit businesses, while granting little relief for homeowners.

Also on Monday, Lowry proposed a $110.7 million capital budget with good news for Spokane.

The proposal includes $1.2 million for design of an addition to the Cheney Cowles Museum to house its collection of Native American artifacts.

, DataTimes