Published: Tuesday, February 23, 2010
House, Senate to release state budget, tax increase plans today
OLYMPIA — Washington state residents will likely get a better idea today what new and higher taxes could be coming their way later this year.
Senate Democrats this morning are scheduled to release their budget proposal showing which government programs they want to slim down and taxes they want to bulk up in order to punch out the $2.8 billion deficit in the state budget.
House Democrats are expected to issue their plan a couple of hours later with public hearings scheduled this afternoon and evening on the two spending blueprints. On Wednesday and Thursday votes are expected to be taken in the budget committees of each chamber.
Few lawmakers knew details late Monday, so the release of the proposals should at least sharpen their focus heading toward the scheduled end of session 17 days from now.
“These give all of us a starting point, and now everyone can draw a bead on the budget,” said Sen. Steve Hobbs, D-Lake Stevens, who serves on the Senate Ways and Means Committee.
Answers to two big questions should become clearer today: How much new revenue do majority Democrats want to raise and will they do so with a temporary sales tax increase or by tapping a slew of sources as suggested by the governor.
Gov. Chris Gregoire last week proposed generating $605 million by tripling the hazardous substance fee, boosting the cigarette tax by $1, charging sales tax on candy and gum and adding new levies of a penny per ounce of bottled water and a nickel per can of soda pop.
She also calls for raising about $154 million by closing loopholes and revising tax laws in response to a lawsuit that cost the state tens of millions of dollars it counted upon for the current budget.
Many House and Senate Democrats endorse zipping up loopholes and increasing the hazardous substance fee. There is division on increasing the sales tax versus capturing money from several sources of funds.
“It is predetermined. I think they go to the sales tax,” said state Sen. Tim Sheldon, D-Potlatch, a moderate who votes more often with Republicans than his party on budget matters.
Rep. Norma Smith, R-Clinton, was discouraged with the presumed direction of both plans.
“Rather than see serious efforts made to reduce government as everyone is calling upon us to do, we’re getting ready to see budgets tomorrow that include new taxing and new fee bills” to expand it, she said.
In the meantime, a noncontroversial spending plan emerged Monday for transportation that had bipartisan support and contained $500,000 to begin unraveling the traffic mess in and out of Frontier Village in Lake Stevens.
“I’m pleased,” said Hobbs, who asked for a lot more, $5 million, and expected a lot less. “It’s a key area that needs to be worked on, and it’s something the community wanted.”
That money would enable the Department of Transportation to start the process of planning improvements to the intersection of Highway 9 and Highway 204 in front of the shopping center.
Today, the House will issue its roads plan. If it contains a similar sum, it’s a good bet the work will get funded. If not, it will be an item of conversation in the next couple weeks.
Overall, the Senate’s $8.6 billion transportation budget is about a billion dollars larger than what the Legislature approved last year. Nearly all of that increase comes from a revision of how money for the largest projects is allotted and the addition of federal funds for higher speed rail.
The plan has some notable differences with the proposal put forth by Gregoire in December.
For example, the governor covers a $38 million hole in the Washington State Ferries fuel budget by adding a fuel surcharge on ferry tickets. The Senate plan plugs the gap with money from road maintenance and preservation reserves, delaying the surcharge fee until at least July 2011.
The Senate plan provides $3.6 million for training and hiring Washington State Patrol troopers where Gregoire did not.
“We decided this is not the time to cut back on troopers,” said state Sen. Mary Margaret Haugen, D-Camano Island, chairwoman of the Senate Transportation Committee and the lead writer of the proposed budget.
The committee conducted a hearing on the bill Monday and could be ready to approve it as early as today.
Reporter Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com
See it yourself
The Legislative Evaluation and Accountability Program posts the latest versions of all budget proposals online at http://leap.leg.wa.gov.
Senate Democrats this morning are scheduled to release their budget proposal showing which government programs they want to slim down and taxes they want to bulk up in order to punch out the $2.8 billion deficit in the state budget.
House Democrats are expected to issue their plan a couple of hours later with public hearings scheduled this afternoon and evening on the two spending blueprints. On Wednesday and Thursday votes are expected to be taken in the budget committees of each chamber.
Few lawmakers knew details late Monday, so the release of the proposals should at least sharpen their focus heading toward the scheduled end of session 17 days from now.
“These give all of us a starting point, and now everyone can draw a bead on the budget,” said Sen. Steve Hobbs, D-Lake Stevens, who serves on the Senate Ways and Means Committee.
Answers to two big questions should become clearer today: How much new revenue do majority Democrats want to raise and will they do so with a temporary sales tax increase or by tapping a slew of sources as suggested by the governor.
Gov. Chris Gregoire last week proposed generating $605 million by tripling the hazardous substance fee, boosting the cigarette tax by $1, charging sales tax on candy and gum and adding new levies of a penny per ounce of bottled water and a nickel per can of soda pop.
She also calls for raising about $154 million by closing loopholes and revising tax laws in response to a lawsuit that cost the state tens of millions of dollars it counted upon for the current budget.
Many House and Senate Democrats endorse zipping up loopholes and increasing the hazardous substance fee. There is division on increasing the sales tax versus capturing money from several sources of funds.
“It is predetermined. I think they go to the sales tax,” said state Sen. Tim Sheldon, D-Potlatch, a moderate who votes more often with Republicans than his party on budget matters.
Rep. Norma Smith, R-Clinton, was discouraged with the presumed direction of both plans.
“Rather than see serious efforts made to reduce government as everyone is calling upon us to do, we’re getting ready to see budgets tomorrow that include new taxing and new fee bills” to expand it, she said.
In the meantime, a noncontroversial spending plan emerged Monday for transportation that had bipartisan support and contained $500,000 to begin unraveling the traffic mess in and out of Frontier Village in Lake Stevens.
“I’m pleased,” said Hobbs, who asked for a lot more, $5 million, and expected a lot less. “It’s a key area that needs to be worked on, and it’s something the community wanted.”
That money would enable the Department of Transportation to start the process of planning improvements to the intersection of Highway 9 and Highway 204 in front of the shopping center.
Today, the House will issue its roads plan. If it contains a similar sum, it’s a good bet the work will get funded. If not, it will be an item of conversation in the next couple weeks.
Overall, the Senate’s $8.6 billion transportation budget is about a billion dollars larger than what the Legislature approved last year. Nearly all of that increase comes from a revision of how money for the largest projects is allotted and the addition of federal funds for higher speed rail.
The plan has some notable differences with the proposal put forth by Gregoire in December.
For example, the governor covers a $38 million hole in the Washington State Ferries fuel budget by adding a fuel surcharge on ferry tickets. The Senate plan plugs the gap with money from road maintenance and preservation reserves, delaying the surcharge fee until at least July 2011.
The Senate plan provides $3.6 million for training and hiring Washington State Patrol troopers where Gregoire did not.
“We decided this is not the time to cut back on troopers,” said state Sen. Mary Margaret Haugen, D-Camano Island, chairwoman of the Senate Transportation Committee and the lead writer of the proposed budget.
The committee conducted a hearing on the bill Monday and could be ready to approve it as early as today.
Reporter Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com
See it yourself
The Legislative Evaluation and Accountability Program posts the latest versions of all budget proposals online at http://leap.leg.wa.gov.
Story tags »
• Roads • Transportation • Taxes • Governor • LegislatureRelated
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