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03/07/2010

Fitting the Budget Pieces Together

Late Friday, the House adopted a supplemental budget. Saturday, the Senate, which had previously adopted an operating budget, worked through all of the amendments to the tax plan passed out of the Ways and Means Committee Friday.

As expected, most things are moving along party lines, although Sen. Joe Zarelli managed to get consent for an amendment that if the proposed temporary 0.3 percentage point increase in the sales tax doesn't come off in three years, lawmakers lose their expense allowances. As Brad Shannon reports in the Olympian,

But it may end up as just a formality — if the Senate Democrats and House Democrats don't ultimately agree that a temporary three-tenths of 1 percent sales tax is part of the answer to closing a $2.8 billion shortfall.

The House firmly opposes it. Gov. Chris Gregoire doesn't much like it either.

I watched the debate. As Shannon writes, it got intense at times. They adjourned until noon Sunday, possibly lacking the votes to pass the package without all members present. Democratic Sen. Paull Shin had to leave early to attend a funeral.

The House, which is not meeting Sunday, is expected to adopt its revenue package on Monday. This is from Shannon's story:

HB 3176 includes about $758 million in new revenue and shifts another $100 million in revenues to general-fund accounts.

The new revenue is raised mainly through closing tax exemptions and increasing the business-occupations tax on lawyers, accountants and certain agents by 0.5 percent. HB 3176 also adds a sales tax on candy, gum, custom software, janitorial services and bottled water.

Reconciling the conflicting tax and spending plans be the work of the final days of the session, which is scheduled to end March 11. The Seattle Times editorial board weighs in with a proposed compromise, with about $512 million in new taxes including the Dot Foods fix.

I think it can bet resolved in a few days. We'll see.

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