Senate puts $950 million in reserve

OLYMPIA — Senate Democrats joined ranks with Gov. Christine Gregoire on Wednesday by rolling out a budget proposal that sets aside most of a projected $1.6 billion surplus in tax revenue for later use.

The Senate's supplemental budget calls for spending a little over $600 million of the tax surplus and setting aside about $950 million to take care of rising costs when the Legislature puts together its next two-year budget in 2007.

The governor's budget, by comparison, sets aside about $900 million and spends $500 million. Senate Democrats were helped by an updated revenue forecast on Wednesday morning that boosted the projected tax surplus by more than $100 million from what the governor had to work with.

Sen. Margarita Prentice, chairwoman of the Senate Ways and Means Committee, said the Senate deliberately tried to stay as close to the governor's proposal as possible. That made Gregoire happy. But Prentice noted "as we look at all the needs, it's impossible to make decisions that will please everyone."

That was true for Paola Maranan, executive director of the Children's Alliance, who wanted to see more money spent to bolster health care and to improve conditions for children in foster care. The budget "doesn't meet the needs we know we have for kids," she said.

On the other side, Republicans argued that both Gregoire's budget and the Senate proposal spend too much money.

Sen. Joe Zarelli, R-Ridgefield, the ranking Republican on the Ways and Means Committee, contends that the Legislature should set aside around $1.4 billion to deal with future costs. As it stands, he said, Senate Democrats "are spending more than the governor."

The state works on a two-year budget cycle. Last year the Legislature passed a $26 billion operating budget for 2005-07. The supplemental budget is supposed to cover unforeseen costs, such as health-care caseload increases, but it also creates an opportunity to spend money on other things.

The Senate's proposal includes about $450 million in new spending in such areas as health care, public schools, higher education and the state pension system. An additional $150 million would cover cost increases, including growth in public-school enrollment and health-care caseloads.

Victor Moore, Gregoire's budget director, said the two budgets "are more alike than they are different." The main differences are in how the money is spent.

Senate Democrats say they set aside more money to take care of the state pension system, and allocate more money than the governor in several areas.

For example, the Senate's budget would spend an additional $35 million for higher education, about $16 million more than the governor's budget, and includes 125 new enrollment slots at community colleges and 180 slots at four-year universities.

The budget includes $10 million to help rebuild and restore minor-league baseball parks across the state and $2.7 million to remove the $5 parking fee currently charged to people visiting state parks. Both those items weren't included in the governor's budget.

The Senate is expected to pass its budget on Friday. House Democrats will release their budget next week.

House Majority Leader Lynn Kessler, D-Hoquiam, said she expects the House budget also will set aside around $900 million for later use. "There are a lot of things that are similar," she said about the Senate budget and the upcoming House proposal.

Andrew Garber: 360-943-9882 or agarber@seattletimes.com