Legislative Information

State Briefing Papers

 April 26, 2000



Details of the higher education section of the budget compromise have not been released. Some legislators indicate that the WSU section of the budget will contain elements of the House, Senate, and gubernatorial budget proposals. There are unconfirmed reports that the fall enrollments will be set at House levels. There are also unconfirmed reports that the Pullman power plant boiler and the Spokane Health Sciences initiative have been funded. I will pass confirmed information on as soon as it is available. Here is the Associated Press report indicating that the budget deal has been finalized late Tuesday night.

- Larry



Breakthrough: Negotiators produce budget compromise


By DAVID AMMONS
The Associated Press
4/26/00 2:23 AM

OLYMPIA (AP) -- Budget negotiators have broken a 91-day impasse, agreeing on a package they expect to approve and send to Gov. Gary Locke on Thursday. The plan does not include property-tax cuts, despite efforts by both houses to pass a relief plan to head off more sweeping tax-cut initiatives this fall.

Rather, the deal includes plans for filling gaping holes left by voter approval of tax-revolt Initiative 695 last fall and inaugurates a new state aid program for local school districts.

Negotiators also announced agreement on a new transportation budget That includes hundreds of millions for highway projects, keeps roadside Rest areas open and bails out transit and ferries.

Budget leaders emerged Tuesday night after a day of marathon negotiations to announce the breakthrough. After a few final details are ironed out, the plan will be presented to the House and Senate Republican and Democratic caucuses.

If all goes according to plan, they expect final passage on Thursday. Senate budget Chairwoman Valoria Loveland, D-Pasco, and the co-chairs of the House budget panel, Tom Huff, R-Gig Harbor, and Helen Sommers, D-Seattle, were jubilant, if exhausted after days of sometimes tense negotiations. Each pronounced the final deal a success.

"We`re ready to vote!" cried Loveland. "We`re down to finishing here." Huff said the cut-and-paste deal has something for everyone -- and will leave all sides a little unhappy.

"It`s a tough process. Each caucus has its needs and desires and wants and it`s not always possible to please everybody," Huff told reporters. "We kept our cool."

He said Republicans have agreed to drop their demand for a ban on extending insurance benefits to state employees` gay and lesbian partners and to unmarried heterosexual partners. The Public Employee Benefits Board is studying a plan to provide such benefits, at the request of the Washington Federation of State Employees, AFL-CIO. "We would have preferred a proviso, but reality does set in and ultimately we have to get a budget out of here," Huff said. "These aren`t drop- dead issues. You move on."

He said the budget won`t include extra money for employee benefits and that if the board of Locke appointees were to decide unilaterally to cover domestic partners, the money would have to come from employees, not the taxpayers.

The new budget includes $57 million for education improvements and $145 million for school construction. Over five years, the program would total $1.5 billion in new aid. This project has been a major priority for the governor.

The hang-up was over the Senate`s refusal to earmark lottery proceeds for the school enhancements. The compromise is to dip into the general treasury at a level similar to the lottery income, but not tied to gambling per se.

The proposal includes about $135 million in aid to local governments to replenish some of the I-695 cuts. It also includes $20 million in cash for the ferry system, $80 million for transit and $15 million for Sound Transit.

The plan does not, however, include property-tax cuts. The Senate had wanted to give a $200 tax credit to all homeowners, but not to businesses.

The governor and the House wanted a smaller tax cut for all property owners, coupled with a bigger tax break for senior citizens. In the end, Huff and Loveland said, the standoff meant nothing will pass this year.

Locke, who convened a new special session on Monday before lawmakers had reached a deal, applauded the progress. But he added, "We must wrap this up quickly. Too much hangs in the balance."

Highway projects await a green light and the state mustn`t miss part of the construction season, the governor said. Transit systems and state and local programs need to know how much money they will have, the administration said.

 
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