State budget battle: Round 2 opens

By Ralph Thomas
Seattle Times Olympia bureau

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OLYMPIA — Compared to last year, this year's budget talks should be a cinch for legislative leaders. But don't count on it.

House Democrats and Senate Republicans yesterday unveiled competing proposals for making midcourse changes to the state's current $23 billion budget. Though they are only about $160 million apart — a small number by Olympia standards — the two sides have some broad philosophical disagreements to work out.

The Democrat-controlled House wants to spend far more than the Republican-led Senate to boost college enrollments and to restore cuts made last year to health-care programs.

Republican leaders, pointing to a projected $1 billion shortfall in the next two-year budget, want to keep about $400 million in reserves, double what the House plan leaves.

Last year, when the state faced a nearly $2.7 billion deficit, the Democrat-led House and Republican-controlled Senate started out with more than $1 billion in differences in their budgets. It took more than two months to reach a deal.

No one expects another struggle like that. But you wouldn't have known it from the tone of the rhetoric yesterday.

The House budget includes an extra $42 million for higher education, most of it to help add nearly 5,000 enrollment slots. The Senate budget includes only $2.5 million, enough for 227 enrollment slots.

"It appears that the Senate has turned its back on the new economy," said House Appropriations Chairwoman Helen Sommers, D-Seattle.

But Senate Ways and Means Chairman Joe Zarelli, R-Vancouver, who included $100,000 to study higher-education enrollment needs, accused Democrats of throwing money at the problem.

Another point of contention was a Senate proposal to save about $7 million by limiting how long people can stay on the state's General Assistance program.
 
"This will be catastrophic," said Tony Lee, lobbyist for the Fremont Public Association in Seattle.

Republicans criticized House Democrats for a budget they say would lead to a bigger shortfall in the next biennium.

"It's shortsighted to say, 'Let's spend the money today' when you know we've got tough times ahead," said Senate Majority Leader Bill Finkbeiner, R-Kirkland.

One long-running feud appears over. Both plans include about $25 million for a contract between the state and 26,000 home-health-care workers. The workers have fought more than two years for pay raises and new health benefits.

Lawmakers on both sides are retreating from last year's decision to start charging premiums for families with children on Medicaid. Those premiums could range from $15 to $25 per child.

House Democrats are proposing to eliminate premiums for the poorest families. The Senate Republican budget would lower the premiums by $10 per child.

Ralph Thomas: 360-943-9882 or rthomas@seattletimes.com

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