Gregoire unveils her stimulus plan for the state

Gov. Chris Gregoire today detailed her plan to help recharge the state's economy through more than $800 million in construction projects, increased unemployment benefits and help for homeowners facing foreclosure.

The plan proposed to the Legislature includes $427 million in construction projects and $390 in transportation work — all of which Gregoire says is ready to break ground in the next few months.

The bulk of the transportation spending pay for improvements to the Interstate 405-Highway 520 interchange in Bellevue. Millions more would go to repaving projects throughout the state.

Other construction projects include new buildings and renovations at the state's colleges and universities, environmental cleanup and work at state prisons. About $10 million would pay to install alternative-energy equipment in government-owned facilities.

Gregoire says the package would help create 20,000 jobs over the two years, when coupled with spending on existing projects.

Both Gregoire's plan and a stimulus package proposed by Senate Democrats on Tuesday tout the importance of creating environmentally friendly jobs. Both plans also would tap into the state's $4 billion unemployment insurance trust fund to offer relief to laid-off workers.

Gregoire alluded to her $1.2 billion "Washington Jobs Now" package during her inaugural speech at the Capitol on Wednesday, but she provided details today at an economic forecast conference in Seattle.

In addition to the construction projects, her plan would give homeowners in fear of losing their homes to foreclosure more time to work on financial options. It also would withdraw $400 million from the state unemployment insurance fund to pay for increased unemployment benefits, worker retraining and a tax break for companies.

Construction projects typically are financed by selling bonds that are paid off over time.

On Tuesday, Senate Democrats announced their economic package, which they said could possibly create nearly 25,000 new jobs. The Senate proposal focused on creating jobs, building energy-efficient homes, slashing work-study hours for out-of-state college students and providing business tax breaks.

The stimulus proposal offered by the House is not expected to be released until next month. The Democrats control the governor's mansion and both the state House and Senate.

Senate Republicans have said the Democrats aren't focusing enough on preserving small businesses during the economic crisis.

Jennifer Sullivan: 206-464-8294 or jensullivan@seattletimes.com