New taxes shot down in House budget

OLYMPIA — When state representatives arrive today, most will, for the first time, see details of a $31.4 billion budget on which they’ll be voting tonight.

Democrats may discover glimmers of good news in an otherwise gloomy plan that pares $4 billion from schools, colleges, human services, public safety and medical care for the poor.

Republicans will unearth alternatives for spending and cutting in this blueprint for running state government the rest of this budget year, which ends June 30, and the next one that ends June 30, 2011.

They can take heart in knowing Democrats put no new taxes – only fees – in the budget and won’t be placing any tax measures on the ballot. Proposals for a sales tax hike and an income tax on the wealthy were both scuttled Thursday.

Tonight’s vote will be close. Though House Democrats hold 62 seats, a large enough majority to approve it without Republican votes, there are disheartened members who may not support its passage.

“There will be 52 votes for the budget,” said Rep. Hans Dunshee, D-Snohomish, who said he’ll be among them.

“It’s going to be tough to get the votes. Everybody got whacked,” he said. “It’s the reality of the situation. It’s what we need to do to get out of here.”

The state faces a projected shortfall of $9.3 billion through mid-2011. This budget relies on federal stimulus dollars, reserves and transfers from the capital budget and other accounts to fill half the hole.

It makes up the rest with nearly $4 billion in cuts from state agencies, public schools and higher education.

Democratic leaders in the House and Senate released details Thursday on some of the big decisions.

The budget slices nearly $800 million from elementary and secondary schools — $600 million of which would have gone to Initiative 728-funded programs.

This cut could cost 2,500 teachers their jobs statewide. Teachers who aren’t laid off won’t get pay raises, which saves the state another $353 million.

It does fully fund smaller class sizes in kindergarten through fourth grades, which is unexpected.

“We are saving some of our teacher jobs, which is a good thing,” said Sen. Rosemary McAuliffe, D-Bothell, chairwoman of the Senate education committee.

School districts will, on average, receive 2.6 percent less in the next two-year budget than they do in the current one, according to information from budget writers.

Higher education will lose 3,000 state-funded enrollment slots and be expected to raise tuition by 7 percent at community and technical colleges and 14 percent at four-year universities.

Up to 40,000 people will be unable to enroll in the Basic Health Plan as the state cuts $255 million out of this subsidized medical coverage program for the poor.

In another surprise, the budget preserves the General Assistance Unemployable program that provides monthly stipends and medical care for those unable to get work because of a disabling condition.

Gov. Chris Gregoire wanted it eliminated and senators wanted to slice it in half. The budget trims it by $60 million, enabling most recipients to continue receiving help.

Rep. John McCoy, D-Tulalip, was unsure how he’d vote until learning Thursday that programs he valued, the GAU and the smaller classes in lower grades, survived.

“I’m going to vote for it. Those were two areas I was really concerned about,” he said.

Rep. Mary Helen Roberts, D-Lynnwood, is another supporter.

“If you go through it, it’s very easy to find areas of disappointment. I have faith in the people who worked on this that they did the best they can,” said.

Rep. Mike Sells, D-Everett, and Sen. Paull Shin, D-Edmonds, each said they are struggling with their decision.

Sells is disturbed by the cuts in public schools. He’s pushing amendments to shift money out of studies and equipment into schools.

“It’s not huge amounts but I think there is an important message that in these times we’re going to be putting every penny we’ve got into classrooms,” he said.

Republicans didn’t need a briefing Thursday to know they won’t be supportive.

“I’ve seen enough of it from the bills we’ve been voting on,” said Rep. Dan Kristiansen, R-Snohomish.

His chief criticism is Democrats “lack of internal fortitude” to fund basic needs of the populace rather than the wish lists of political supporters. Some health care programs are expanding eligibility to increase enrollment, which adds costs and forces reductions elsewhere, he said.

“The failure we make down here in the Legislature is we were not able to give up enough wants,” he said.

While there are no new taxes, millions of dollars from fees are counted on in the Democrats’ budget balancing equation.

For example, vehicle owners will be billed $5 on their registration renewal form to augment funding for state parks. Owners will be able to opt out of paying, though the state Parks and Recreation Commission hopes they won’t.

The budget assumes taking in $26 million, enough to prevent closures of any state parks.

Some lawmakers hoped voters might provide a stream of additional sales tax revenue later this year. Not now.

House Democratic leaders Thursday put the brakes on a referendum for a three-tenths of a penny increase for three years. The money was earmarked for health care and human services programs facing cuts in the budget.

An income tax idea died, too, Thursday.

Senate Majority Leader Lisa Brown, D-Spokane, has been talking up the idea of a tax on those earning at least $250,000 a year. Thursday she said legislation to create the tax will not be considered this session.

If the budget passes the House tonight, it will go to the Senate Ways and Means Committee for a hearing Saturday. A vote in the Senate would come Sunday, the last scheduled day of the session.

The complete budget proposal is available here.

Jerry Cornfield: 360-5352-8623, jcornfield@heraldnet.com

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