SEATTLE – About $4 billion in new school construction and other projects throughout the state remain on hold six months after a water-related dispute stalled passage of the state’s two-year construction budget.

Lawmakers have been working on a compromise. But top Republican and Democratic leaders still appeared to be divided on the issue this week.

Republicans have insisted on getting legislation to fix the so-called Hirst court decision before passing the capital budget. That 2016 state Supreme Court ruling effectively restricted new household wells in rural areas if they affect water kept in streams for fish or other senior water rights.

Top Democratic leaders said Thursday that the capital budget is a priority and shouldn’t be linked to complex water issues.

Republicans say a fix to the Hirst ruling is as critical to the state’s economy as anything else lawmakers do.