Gregoire proposes $1.7 billion in cuts, temporary sales tax increase

Gregoire's proposal to address a projected $1.4 billion deficit was released Monday. It also includes reductions in university support and the elimination of medical programs for 55,000 low-income residents.

But Gregoire, entering her final year in office, is seeking more than $830 million in revenue to buy back some of these cuts, and she wants a voter-approved temporary half-cent tax increase that would bring in $494 million through 2013. That tax increase would expire in 2015.

The education cuts account for roughly one-quarter of Gregoire's reductions plan. She proposes shortening the school year by four days, saving $99 million, and reducing support for poor school districts by $150 million.

The state would reduce support for higher education by $160 million — a 17 percent reduction for the top universities. Past cuts have already driven up tuition to the point that it is expected to double during Gregoire's eight-year tenure in office.

Another $340 million would be saved by delaying a large payment to school districts until the next two-year budget cycle.

In additional to the sales tax increase, Gregoire's revenue recommendations to the Legislature would bring in an additional $341 million, including $59 million in administrative savings that could pass with a simple majority. However, $282 million of her recommendations would require two-thirds support from the Legislature or would have to go to a public vote.

Those recommendations include a business and occupation tax on oil companies and financial institutions with windfall profits. Gregoire also wants to repeal the sales tax exemption for residents who live in states without a sales tax, like Oregon.

Other major reduction proposals include: • Eliminating the Disability Lifeline program and the Basic Health Plan, saving about $130 million. Those programs provide medical services to 55,000 people.

• Allowing low- and moderate-risk offenders to be released 150 days early from their prison term and reducing supervision for offenders to one year except sex offenders who will be supervised for two years. Offenders are currently supervised for up to three years. The changes would save $41 million.

• Reducing state funding for subsidized child care by $50 million, ending aid for about 4,000 families who get subsidized care while parents work.