Senate narrowly approves $22.5 billion state budget

Associated Press

OLYMPIA — The state Senate narrowly approved a new $22.5 billion state budget on Saturday, plugging a $1.5 billion hole left by the terrorist attacks, recession and soaring costs.

Like their colleagues in the House, senators envision an unsavory blend of service cuts, use of reserves and federal dollars, and cashing in on part of the state’s tobacco settlement. The only saving grace, they said, is that the massive budget rewrite avoids tax increases or truly severe cuts.

The new budget passed 26-23 over the strong objections of minority Republicans, who sought deeper spending cuts and excoriated the decision to dip into future revenue from the state’s $4.5 billion tobacco settlement.

"Incredible, incredible stupidity," thundered Sen. Don Benton, R-Vancouver. "It must be a setup to raise taxes, big time, next year."

Even the majority Democrats called it one of the ugliest budgets in years, a response to a cascade of bad news in recent months, coupled with the decision not to increase taxes in an election year.

Senate Majority Leader Sid Snyder, D-Long Beach, joked that he needed an airline barf bag after voting for the measure. Sen. Rosa Franklin, D-Tacoma, president pro tempore, said the budget was "like a big dose of castor oil" to fix what ails the state’s finances.

Every Democrat except Tim Sheldon of Potlatch voted for the budget. Two Republicans put it over the top: Alex Deccio of Yakima and Shirley Winsley of Fircrest. Deccio won restoration of $72 million in nursing home funds, and Winsley got $10 million for aid to cities most affected by loss of car-tab money.

The House has agreed to the Senate’s suggestion for a 9-cent increase in the gasoline tax, up a penny from the original House plan, said Senate Transportation Committee chairwoman Mary Margaret Haugen, D-Camano Island.

But the two houses are far apart on:

Whether the voters should get the last word. The Senate will approve an $8 billion proposal on Monday that doesn’t provide for a public vote. The House is still demanding a referendum and doesn’t have enough votes to pass the taxes in Olympia, said House Majority Floor Leader Brian Hatfield, D-Raymond.

How the money should be spent. The Senate spends more on major state highways. The House spends more on nonhighway programs like mass transit and on local roads.

?A regional bill to authorize local officials to ask their voters to raise taxes to pay for megaprojects. Haugen said the House hates the Senate’s version of the bill and is talking about not doing a regional plan. The Senate considers it essential, she said.

One likely solution would be for the House to get its way on the statewide financing package, including more for mass transit, and for the Senate to prevail with a highway-oriented regional package, aides said.