| Tuesday, February 9, 2010 |
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OLYMPIA – Vowing to support schools and families, Washington's state Senate proposed on Monday a two-year $26 billion state budget propped up with some help from smokers, drinkers, college students and the rich.
The plan's Democratic authors called it a sustainable budget with very modest, pragmatic tax increases. Among them: 60 cents more per pack of cigarettes, $1 more per liter of liquor, a 5 percent to 7 percent tuition increase and a partial return to Washington's estate tax, tossed out by the Supreme Court two months ago. The new cigarette, liquor and estate taxes would raise $353 million more over the next two years.
"I believe that the revenue we brought in was the kind that the public will accept and that will be directed in areas that we believe the public wants," said Sen. Margarita Prentice, D-Renton. She heads the Senate's budget committee.
Republicans denounced the proposed budget, nearly 12 percent larger than the last one, as irresponsible. They said it relies on $1 billion in one-time budget gymnastics such as spending most of the state's savings and delaying $312 million in pension payments.
Democrats said their budget boosts college enrollments, provides cost-of-living increases for state workers and teachers, restores nearly $200 million in federal cuts to government services including mental health care and sets aside money for drought relief and firefighting.
It also increases Medicaid reimbursement rates for hospitals, particularly those in Spokane, although not as much as Gov. Christine Gregoire has proposed.
"It's a good budget for tough times," said Senate Majority Leader Lisa Brown, D-Spokane.
"There are (more) things I'd like to do," Prentice said, "but then, in my district, if you talk about taxes, people applaud. That's not the case in a lot of the state."
The last budget proposal will come from the state House of Representatives, probably early next week. Lawmakers and the governor hope to agree on a final version by the end of April.
The current two-year general-fund budget – which funds state programs through late June – totals $23.2 billion. The Senate's new budget proposal is for $26 billion; a similar proposal from Gregoire would spend $25.8 billion.
Most of the increase, budget writers say, is due to increased caseloads: more students, more prisoners and especially more poor and disabled people qualifying for ever-more-expensive medical care.
Senate Democrats also want to:
-- Boost public workers' compensation by $472 million.
-- Increase teachers' pay by $150 million.
-- Spend $138 million to shrink school class sizes.
-- Put $176 million into the state's colleges to create more spaces and boost financial aid.
Overall, the Senate budget would boost school spending for kindergarten through 12th grade by 9.1 percent.
"I'll never apologize for wanting to live in the best state in the country," said Prentice, "with the strongest schools, cleanest energy, healthiest economy and the best access to health care."
The state teachers union, however, said the budget doesn't go far enough. Under the Senate plan, many school employees would pay more for their health coverage. And they would not get back the cost-of-living increases the state suspended for two years during the recession.
"This budget is a disappointment," said Dave Scott, Washington Education Association vice president.
Also disappointed were some advocates for the poor. The Senate budget would tighten eligibility requirements for elderly and disabled people needing state-paid personal care at home, they said. And the Senate is calling for a $3 "co-pay" for prescriptions issued to Medicaid patients. That would save $8 million over two years.
"We felt this was a small-enough co-pay that people could afford to pay it," said Prentice. "The last thing I want is for the system to go broke."
Unlike the governor's budget, the Senate version would not reinstate state-subsidized health coverage for 16,700 children of impoverished illegal immigrant farmworkers. The state spiked the coverage in 2002.
Jason Mercier, a budget analyst with the conservative Evergreen Freedom Foundation, said the long-term fix for the state's recurring budget shortfalls is simple: Get rid of some of the discretionary government programs set up during the economic boom of the late 1990s.
"They keep punting to future lawmakers," he said.