Senate budget proposal bulks up reserves

OLYMPIA — Senate Democrats on Wednesday offered a new two-year state budget plan, and House Speaker Frank Chopp said the House likely would agree to a "rainy day" reserve account badly wanted by the governor and Senate.

The Senate already has passed a proposed constitutional amendment to force the state to set aside 1 percent of its income every year, accumulating to 10 percent or more, perhaps $1.5 billion. It's an old Republican idea, and Gov. Christine Gregoire and Senate Majority Leader Lisa Brown, D-Spokane, are championing it this year.

In rolling out their new $33.3 billion, two-year budget proposal Wednesday, Senate Democrats said they want to save $766 million, including $159 million in a new hard-to-tap "rainy day" account to use when the economy tanks.

The House's version of the budget also contains savings. But House Democrats have thus far followed the leader of their appropriations panel, Helen Sommers, D-Seattle, in blocking a mandated "rainy day" fund.

Senate budget Chairwoman Margarita Prentice, D-Renton, and the governor both indicated Wednesday they will insist on it.

Asked about that, Chopp said he generally agreed with Sommers' view but predicted the House would accede to the strong request from Gregoire and the Senate.

"We want to work with the Senate in a good way, so we're going to move that forward and I'm sure it will pass," he said.

The measure likely will pass very late in the session, he said.

The Senate budget plan generally tracks with plans from the governor and the House, but proposes the highest level of savings suggested so far this session.

Minority Republicans in both chambers saw some improvement over the House plan but said Democratic legislators and the governor still want to spend too heavily and save too little.

After the plan passes the full Senate, tentatively planned for Saturday, the House and Senate will have just three weeks to negotiate a compromise deal before the scheduled end of the legislative session.