Locke plan boosts spending
Conservatives say plan too generous; others feel slighted

Richard Roesler
Staff writer

OLYMPIA -- Declaring Washington's state budget crisis over, Gov. Gary Locke on Thursday proposed a supplemental budget that adds hundreds of thousands of dollars to Spokane-area schools, millions of dollars to local universities, and tens of millions of dollars in tax breaks for rural economic development.

The 2004 budget proposal would also reduce fees for low-income children who rely on Medicaid health coverage. It would pay for 5,200 more slots at state colleges, start construction on a new prison in Franklin County, and help struggling rural health clinics.

"We're addressing the issues that matter most to the people of Washington," said Locke. "We're focusing on the basics."

His budget would boost state spending by about $200 million, plus $168 million in construction bonds and $74 million worth of rural tax breaks for manufacturers and research.

The proposal will soon go to the Legislature, which controls the state's purse strings. Lawmakers typically use a governor's proposal as a blueprint for the budget they'll approve early next year.

The governor, who last winter drew political fire for proposing an all-cuts, no-new-taxes budget, said he feels vindicated.

"The tough decisions are paying off," he said.

Still, shortly after his proposal was unveiled Thursday, critics on both the left and the right called it flawed.

Gubernatorial candidate Ron Sims said the budget shortchanges public schools and higher education. The state will need 33,500 more slots in its colleges by 2010, Sims said.

"We will be facing the state's highest-ever graduation class in 2007," said Sims, "and our state is not now prepared to educate them."

State Superintendent of Public Instruction Terry Bergeson said she's disappointed that the budget doesn't include money for cost-of-living raises for teachers.

Locke last year proposed a two-year "suspension" in the raises, saying the state couldn't afford them.

Conservatives, on the other hand, called Locke's proposal too generous. They said the proposal relies on tapping the state's savings for more than $300 million.

"If we go back to budgeting as usual, we're guaranteed deficits and pressure for tax increases," said Jason Mercier, a budget research analyst with the Evergreen Freedom Foundation.

Senate budget chairman Joe Zarelli, R-Vancouver, said Locke's spending would only worsen an expected $1.5 billion budget shortfall next year.

"There is virtually no effort to control costs in his budget proposal," said Zarelli.

Locke's response: the state would still have nearly $172 million in savings, and the state's economy is improving.

Here are some of the highlights of Locke's proposal:

•$30 million to expand college enrollments. Without more money, the state's largest universities say they can't keep increasing the size of each year's freshman class.

"Do we tell kids to stop and wait for a few years before they apply for college?" Locke said.

•$93 million for new classrooms, labs and other construction at colleges, technical schools and universities.

•$7 million to double the Promise Scholarship program for low- and middle-income high schoolers with good grades.

•$7 million for the Learning Assistance Program to help struggling public-school students meet new state standards.

•Tripling, to 210, the number of retired physicians for whom the state will pay malpractice insurance premiums. This allows them to work as volunteers.

•Boosting Medicaid reimbursements 29 percent for childbirth care.

•$23 million to cancel or reduce Medicaid premiums for low-income children. Health-care advocates wanted Locke to abolish the premiums, which start in January.

"Unfortunately, we don't think he's gone far enough," said Spokane's Linda Stone, with the Children's Alliance.

•$24 million for a new contract for state-paid home health aides. They would get a 50-cents-an-hour raise, workers compensation benefits and some health coverage.

•$19 million for new water storage, irrigation improvements and wastewater reclamation.

•$46 million for a new 768-bed prison in Franklin County.

•$7 million for community health services by public hospital districts.

•$4 million for civil legal services for the poor. The money, which comes from an increase in Superior Court filing fees, would help people with evictions, foreclosures and other legal problems.