Oregon daily emerald. (Eugene, Or.) 1920-2012, January 14, 1991, Page 19, Image 19

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    REGIONAL
Washinaton state faces $15 billion headache
OLYMPIA (AP) - Washing
ton's mild recession, coupled
with lawmakers’ determination
not to raise taxes while special
interests make expensive de
mands. will give lawmakers a
$15 billion headache this ses
sion.
The possibility of war in the
Persian Gulf is an added threat
as legislators convene Monday
for their 105-day session.
State Economist ('hang Mook
Sohn has predicted a war could
knock a $400 million hole in
projected revenues. That would
mean massive cuts in the two
year budget lawmakers must
write.
Conversely, if a peaceful set
tlement is negotiated over
Iraq’s invasion of Kuwait, the
state's March revenue forecast
could rise by $100 million.
Gov. Booth Gardner has pro
posed a $15.4 billion, two-year
spending plan. That's nearly
$000 million out of balance
However. Gardner has recom
mended cutbacks in agency
spending and increased fees
that would erase the red ink.
In any event, don't expect
any substantive action on the
budget until late March or early
April.
Before that time, hearings
will be held for state agency
heads and interest groups to
justify their money requests.
But the real work on the budget
won't begin before March 1H.
when Sohn releases the rev
enue forecast.
i ms year me nrsi urun oi me
budget will be written by
House Appropriations Chair
man Gary Locke. D-Seattle.
From there tiie inulget will go
to the Senate and go through
another rewrite by Ways and
Means Chairman Dan McDon
ald. R Bellevue.
The final budget will be the
product of a House-Senate con
ference committee. When that
will happen is anybody's
guess. It must be on the books,
however, by next July 1. the be
ginning of the new two-year
fiscal period.
Gardner predicts the final
legislative product will 1m; simi
lar to his proposal.
l^ocke and McDonald say
probably not Both men say the
governor's budget is no more
than a starting point and that
they will make major adjust
ments to reflect changes in the
revenue picture and to produce
a document that can gain a ma
jority of votes in both houses.
Probably the hottest issue
will Ik; pay increases for state
employees and public school
teachers. Gardner has proposed
a 4.4 percent raise the first year
of the biennium, followed by a
3.8 percent increase the second
year.
The Washington Education
Association and state employee
unions already have rejected
the proposal, calling it an in
sult.
However, the governor's pro
posal could be the high-water
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mark. McDonald and Locke
have said pay increases an’ low
on their priority lists.
The rest of the governor's
budget plan is a patchwork of
spending cuts — 5 percent in
the colleges and universities —
and various belt-tightening
steps, fee increases and select
ed spending increases.
One highly visible tax in
crease. a penny a pack on ciga
rettes. isn't a budget-balancer,
but a way of financing a new
slate ad campaign against
smoking
Most of the budget increases
recommended by (Gardner
would pay for maintaining cur
rent state programs, including
anticipated higher social ser
vice caseloads and school en
roll merits
A few programs would get
actual increases, such as envi
ronmental protection, urban
growth management. Puget
Sound cleanup and early child
hood education
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