Agreement reached on deficit cutting package

OLYMPIA — Democratic and Republican lawmakers said Wednesday that they have reached an agreement on a package that patches more than half of an estimated $550 million deficit in this year’s state budget.

The agreement trims several state programs, including the state’s health care program f

or the poor and aid for the disabled, as well as transfer funds from other programs. In total, the plan cuts the deficit by about $370 million, with $242 million in cuts and $125 million in transfers.

“Many of the decisions found in this budget agreement are extremely painful ones. They aren’t necessarily the decisions we’d embrace if we had a wider set of options before us, but that’s a luxury we don’t have,” said Sen. Ed Murray, D-Seattle, chairman of the Senate’s Ways and Means committee. “Our obligation is to bring the current budget into balance, and we intend to meet our obligation.”

A vote is expected Friday on the package. Lawmakers still have to close about $180 million to finally balance the books on this year’s budget.

Lawmakers have spent more than a month of the 105-day legislative session trying to come up with this agreement, and once this package is approved, Gov. Chris Gregoire and legislators will have to tackle an estimated $5 billion deficit in the next two-year budget, which is roughly $37 billion.

The Senate GOP’s budget negotiator, Sen. Joe Zarelli, R-Ridgefield, said the agreement moves the Legislature closer to “reforming three large, visible state-only entitlements, which is important because reforms need to have a prominent role in the development of the next biennial budget.”

The agreements include maintaining cash grants to the Disability Lifeline program, but reducing them by 50 percent and moving to eliminating the cash grant in the next two-year budget; limiting enrollment of children to the state’s Children’s Health Program to families at 200 percent of the federal poverty level; and limiting eligibility to the Basic Health Plan to those who qualify for Medicaid, essentially filtering out illegal immigrants who may be on the plan.

The agreement came from negotiations between Democrats and Republicans in the House and Senate.

House Republican leaders, though, said their members, who are the minority, would not vote in favor of this package, pointing to education funding, in which $25 million were taken from class size reduction initiatives. They said they would have preferred eliminating the cash grants for Disability Lifeline, which provides cash and medical care to unemployable disabled adults who aren’t covered by federal social security benefits.

Rep. Ross Hunter, D-Medina, said that the $25 million were cut from class sizes because there could more dips in revenue projections.

“I don’t have another set of cuts we can take instead,” Hunter said.

Rep. Gary Alexander, R-Olympia, said that one of the reasons he didn’t like the package deal was because it didn’t close enough of the deficit.

“We’re going to have to address that,” he said. “We’ve left a lot of issues on the table.”

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

(City of Everett)
Everett’s possible new stadium has a possible price tag

City staff said a stadium could be built for $82 million, lower than previous estimates. Bonds and private investment would pay for most of it.

Jennifer Humelo, right, hugs Art Cass outside of Full Life Care Snohomish County on Wednesday, May 28, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
‘I’ll lose everything’: Snohomish County’s only adult day health center to close

Full Life Care in Everett, which supports adults with disabilities, will shut its doors July 19 due to state funding challenges.

The age of bridge 503 that spans Swamp Creek can be seen in its timber supports and metal pipes on Wednesday, May 15, 2024, in Lynnwood, Washington. The bridge is set to be replaced by the county in 2025. (Ryan Berry / The Herald)
Snohomish County report: 10 bridges set for repairs, replacement

An annual report the county released May 22 details the condition of local bridges and future maintenance they may require.

The Edmonds City Council gathers to discuss annexing into South County Fire on Tuesday, Dec. 3, 2024 in Edmonds, Washington. (Olivia Vanni / The Herald)
Community group presents vision for Edmonds’ fiscal future

Members from Keep Edmonds Vibrant suggested the council focus on revenue generation and a levy lid lift to address its budget crisis.

Cars drive along Cathcart Way next to the site of the proposed Eastview Village development that borders Little Cedars Elementary on Wednesday, May 7, 2025 in unincorporated Snohomish, Washington. (Olivia Vanni / The Herald)
Former engineer: Snohomish County rushed plans for Eastview development

David Irwin cited red flags from the developers. After he resigned, the county approved the development that’s now stalled with an appeal

People listen as the Marysville School Board votes to close an elementary and a middle school in the 2025-26 school year while reconfiguring the district’s elementary schools to a K-6 model on Wednesday, Jan. 22, 2025 in Marysville, Washington. (Olivia Vanni / The Herald)
Marysville schools audit shows some improvement

Even though the district still faces serious financial problems, the findings are a positive change over last year, auditors said.

Outside of the Madrona School on Monday, Aug. 26, 2024 in Edmonds, Washington. (Olivia Vanni / The Herald)
Sewer district notifies Edmonds schools of intent to sue

The letter of intent alleges the school district has failed to address long-standing “water pollution issues” at Madrona K-8 School.

Raul Benitez Santana in the courtroom Wednesday. (Will Geschke / The Herald)
Jury convicts driver in death of Washington State Patrol trooper

The jury took four hours Wednesday to find Raul Benitez Santana guilty of vehicular homicide and vehicular assault.

Lake Stevens honors council member who died in office

Marcus Tageant, 52, served on the Lake Stevens City Council for more than a decade. He died on May 26.

Community members gather for the dedication of the Oso Landslide Memorial following the ten-year remembrance of the slide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
The Daily Herald garners 6 awards from regional journalism competition

The awards recognize the best in journalism from media outlets across Alaska, Idaho, Montana, Oregon and Washington.

Edmonds Mayor Mike Rosen goes through an informational slideshow about the current budget situation in Edmonds during a roundtable event at the Edmonds Waterfront Center on Monday, April 7, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds mayor recommends $19M levy lid lift for November

The city’s biennial budget assumed a $6 million levy lid lift. The final levy amount is up to the City Council.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.