OLYMPIA — The Democratic-controlled Washington House on Monday approved a new supplemental state budget that boosts overall spending by nearly $300 million, while leaving $750 million in reserve to help deal with expected deficits next year.
Minority Republicans warned that Democrats are wildly overspending, setting the state up for big tax hikes. Democrats conceded that the state is feeling the effects of a national economic downturn, but nothing to get too worried about.
The House budget vote, a nearly straight partyline 62-33, followed hours of debate, framing arguments that are likely to carry forward onto the campaign trail after lawmakers adjourn next month.
The measure now goes to the Senate, which planned to roll out its own plan today, with roughly the same spending and reserves as the House. Gov. Chris Gregoire and some senators have recommended boosting the $750 million reserve figure.
The House plan would increase the current two-year $33 billion budget by a net of about $297 million and leave $750 million in savings to cope with future economic woes. A big chunk of the reserve would be in a hard-to-tap “rainy day” fund created by voters last November.
Lawmakers are fine-tuning the second year of the state budget.
The House proposal is the Legislature’s first concrete reaction to the recent state Revenue Forecast Council announcement that state revenue is expected to drop by $423 million and to a new calculation that added nearly $100 million in expenses for teacher salaries and caseload changes.
The House would spend extra for teacher pay, Medicaid, foster care, family planning, housing, lawsuits against the state, flood relief, long-term care, green-collar jobs and other environmental and climate change programs, as well as public safety.
Gregoire sent up her own $234 million budget in December, with a $1.2 billion reserve, and leaders in both chambers had agreed to a goal of saving at least $1 billion. But after the grim new forecast, House leaders peeled the reserves back to $750 million, a number that Democrats say is the minimum they expect to pass.
But Republicans said Gregoire and her legislative colleagues are spending far too heavily, driving up the budget by 33 percent in the past four years, raising spending twice as fast as the growth in tax revenue.
Alluding to biblical plagues, Rep. Bill Hinkle, R-Cle Elum, said the Democrats are setting up the state for seven years of fiscal pestilence.
“We’ve got to wake up, people!” thundered Rep. Mike Armstrong, R-Wenatchee. One more bad revenue forecast and the state will tumble into deficits, he said.
A new projection from the nonpartisan Senate budget staff shows a deficit of $2.4 billion in the upcoming two-year fiscal period and $5 billion for 2011-13, said Rep. Doug Ericksen, R-Ferndale, deputy minority leader.
“Washington isn’t underperforming as a state; the majority party is overspending,” taking record surpluses and turning them into what could be record deficits, he said.
Rep. Glenn Anderson, R-Fall City, said the Legislature should be cutting the budget, given the “radically different circumstances” of the national economy and state revenue falloff. Big tax hikes and deep spending cuts would be harsh medicine, he said.
But the Democrats staunchly defended previous budget decisions and their latest plans.
“We defend the things that are important,” said Rep. Hans Dunshee, D-Snohomish, budget vice chairman, mentioning 10,000 new college enrollment slots, 30,000 more children covered with health insurance and an investment of $1.7 billion in new K-12 spending.
House Majority Leader Lynn Kessler, D-Hoquiam, accused Republicans of painting “a pretty bleak picture,” without acknowledging the continuing strength of the state economy. Unemployment is at all-time lows, exports are booming and national media are giving the state high marks for its business climate, she said.
“We understand that there are difficult times ahead. We do understand that,” Kessler said. “That’s why we draw the line at what we need in reserves.”
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