Progress made on tax package, state lawmakers say

OLYMPIA — Showing progress in tax-hike negotiations that have vexed the state Legislature, the top Senate Democrat said Friday she's identified about $100 million in tax options that avoid a contentious increase in the state sales tax.

Senate Majority Leader Lisa Brown, D-Spokane, wouldn't discuss specifics of a tax package, saying she wants to present a comprehensive $200 million plan to the House and Gov. Chris Gregoire — possibly as soon as Monday.

If all three sides can agree, the Legislature could begin moving toward adjournment of a special session dedicated to solving the state's $2.8 billion budget deficit. The 30-day overtime period is about to enter its last full week, with a final day of April 13.

"We'll just keep working until we get there," Brown told The Associated Press. "I'm hopeful that we can say on Monday, 'Yup, we've got an agreement on revenue and here's the game plan for the rest of the session.' "

Majority Democrats in the House and Senate are trying to agree on a tax package worth about $800 million through June 2011. Leaders have general agreement on about $600 million worth of higher taxes, leaving some $200 million in dispute.

The Senate's tax proposal has included a two-tenths-of-a-cent temporary sales-tax increase, but House Democrats and Gregoire are opposed to a sales-tax hike.

Brown said that while a sales tax is still the preference of Senate Democrats, she's looking for other options because "I want to work with the House."

"Our job is to resolve the problem," she said. "I feel like my responsibility is to just keep looking for solutions."

House Majority Leader Lynn Kessler, D-Hoquiam, was hopeful Friday that House Democrats could work with the $100 million proposed by the Senate.

"I know Lisa feels like she has a hundred. I think we probably can come up with a hundred," Kessler said Friday. "Again, it's that last hundred that could be the hurdle."

If they reach a revenue agreement by Monday and subsequently finalize a budget by Wednesday, lawmakers could reach a target of working through the following weekend and adjourning before time runs out, Kessler said.

Gregoire, also a Democrat, has been very vocal of her increasing frustration with the amount of time the special session was taking, and had warned that if lawmakers couldn't find a solution, she could be forced to make across-the-board spending cuts of about 20 percent.

But on Thursday, Gregoire sounded a more optimistic note, indicating that lawmakers could be closer to a deal.

"You've caught me at a moment where I'm hopeful," she said, but wouldn't elaborate, saying, "I don't want to jinx it."

Associated Press reporter

Curt Woodward

contributed to this report.