Schools win big in budget; GOP calls spending excessive

BY BRAD SHANNON | THE OLYMPIAN • Published March 12, 2008

• Comments (0)

House and Senate budget negotiators released details of their compromise supplemental budget today, agreeing to keep $836 million in reserves but give K-12 school employees an extra half-percent cost of living increase.

The $306 million supplemental plan also keeps the state on track with its 10-year expansion of free, all-day kindergarten. It boosts pay slightly for nursing home workers, and adds other new money for the care of elderly.

“I think this really is a reasonable balance,’’ House Appropriations chairwoman Helen Sommers, D-Seattle, said of the reserves.

The budget was the last offered by Sommers, who says she is stepping down after this session after a 36-year run at the Capitol.

Republicans immediately ripped the spending plan as excessive.

“There is only one thing I need to look at. Did we reduce spending? No,” said Sen. Joseph Zarelli of Ridgefield, the ranking Republican on the Senate Ways and Means Committee. “Are we dealing with the separation between spending level and revenue? No. That’s been my issue.”

Zarelli said the state will spend $33.7 billion in the two-year budget cycle that ends June 2009, but is taking in just $32 billion in that period. He has predicted shortfalls and either cuts or tax increases next year.

Rep. Gary Alexander, the ranking House Republican from Thurston County, also criticized the foray into new spending that was not emergency-related.

The Senate and House are expected to start their final votes on the agreed-to plan as soon as Thursday morning, the final day of the 60-day session. Adjournment is expected before nightfall.

The new spending includes $7 million in tax breaks for aerospace companies, newspapers’ Internet ad sales and other economic incentives. It also provides $4 per pupil for library resources in public schools.

It also has money to resolve issues related to a lawsuit over state foster care, including funds for more frequent social worker visits and keeping siblings in the same home.

The state teachers’ union immediately hailed the decision on pay increases, releasing a statement from Washington Education Association president Mary Lindquist. She said it helps make up for the suspension of pay raises during 2003-05 and will help improve salaries so public schools can “attract and keep the best educators.’’

The original House budget released last month had reserves in the $750 million range, and the Senate proposed to hold more than $753 million. Higher amounts were achieved by shifting funds, including making use of $57 million from state convention center accounts.

“We really wanted to boost that reserve. There are a lot of funds just sitting in a lot of different accounts. We took those and got them lined up for a possible downturn,” Appropriations vice chairman Hans Dunshee said. “We’re over $100 million more than we were in the bank than last year. We recognize that there may be a slight economic cooling, so that was our goal.’’

Gov. Chris Gregoire had told lawmakers she wanted closer to $900 million, some leaders said. But Senate Ways and Means chairwoman Margarita Prentice, D-Renton, said the governor “didn’t twist our arms. … It’s a lot more civilized than you are indicating.’’