Budget battle looms

Senate, House proposals at odds over health care, teachers' raises

By Brad Shannon | The Olympian • Published February 29, 2008

Senate Democrats approved a $325 million supplemental operating budget Thursday, but didn't heed calls to spend even more with an extra 1 percent pay raise for K-12 teachers and community college staff members.

The state's Republicans, as they have all year, called the spending excessive, warning that a $2.4 billion deficit is rearing its head for next year's budget.

Senate Ways and Means Chairwoman Margarita Prentice, D-Renton, said the Democrats are setting aside $750 million, almost twice the average set-aside since the 1980s. She said the budget responds to December's flood damage and to problems in the mortgage market that have dampened economic growth.

"Our proposed budget is both frugal, keeping $750 million in savings, and it is responsive to urgent needs created by these developments … " she said.

The Senate also approved a capital budget on a unanimous vote.

Passage of the operating budget on a 31-17 vote — with only Democratic Sen. Tim Sheldon of Potlatch crossing party lines to vote against it — sets up negotiations between the House and Senate. Both set aside at least $750 million, but they have different priorities. Gov. Chris Gregoire also is expected to weigh in; she favors a bigger reserve.

House plan

The House wants to give teachers a 1 percent pay raise and start subsidizing health care coverage for some small- business employees, while slowing down the expansion of all-day kindergarten for children in poorer districts. The Senate did not fund the pay raise and health care coverage but has insisted on all-day kindergarten funding and money to fund a tax-rebate program for the working poor.

There also is a huge potential dispute between the House and Senate about how to fund low- income housing. A House proposal calls for spending $90 million on the issue; a Senate proposal calls for spending $50 million.

Sen. Karen Fraser, D-Thurston County, won amendments in committee that had added $75,000 for a study of how to take a local YWCA's program statewide, giving toiletries and other basics to people who also use local food banks in Olympia. Fraser also secured $125,000 to establish a nonviolence education program for southwest Washington on the campus of a local high school.

Prentice said she has "warned everybody" in her caucus that items in the budget are not secure and could be cut as they negotiate — especially given that Gregoire wants more in reserves than the $750 million.

Failed additions

Republicans tried to attach several amendments to change the Senate priorities but failed. These included measures that would have ended the two-month delay in pay raises until Sept. 1 for state employees who don't belong to a union, a study of tax burdens on businesses and a study showing costs of state services that might go to undocumented residents.

Senators traded barbs over who was responsible for eliminating teacher pay raises in 2003 — Republican Dino Rossi in the Senate or Democratic then-Gov. Gary Locke.

Democratic Sen. Rodney Tom of Medina tried to attach an amendment adding $35.8 million in spending to give teachers an extra 1 percent pay raise — a step toward putting back the raises suspended in 2003-04.

"It's trying to make up for some of the Rossi cuts in 2003," he said.

"I am concerned about the Locke cuts to teachers, but I think we need to turn this down," Sen. Jim Honeyford, R-Sunnyside replied .

State government reporter Adam Wilson contributed to this report.