SENATE BUDGET
Senate Democrats released their version which is aimed at closing the $2.8 billion budget gap. It combines fund shifts, including the Rainy Day account, federal funds, cuts services, reduces public sector compensation and raises $918 million in new revenue to balance the budget.
The budget assumes the elimination of 4,300 public sector jobs, assumes $70 million in administrative reductions throughout state government. The Senate proposal includes implementation of the furlough bill for assume savings of $49 million.
For state employee health care premiums, the Senate budget increases the employer share for 2011 from $768 per employee to $795. This increase is not enough to cover the projected increase in premium for the current benefit plan.
It appears that public health funding is maintained at the 2010 levels of appropriations.
Proposal for new revenue would be generated by closing $518 million in tax loopholes, $86 million would come from increasing by one dollar per pack the state’s tax on cigarettes, finally $309 million would be generated by the implementation of a three-tenths percent increase in the state’s sales tax begin June 1, 2010 and ending June 1, 2013.
Working families would be eligible to receive an earned income tax credit to off-set the increase in sales tax and to address the regressive nature of the sales tax. A similar tax credit would be available to small businesses creating new jobs.
HOUSE BUDGET
The House budget writers similar to the senate fill what they say is a $2.7 billion gap by:
- Budget cuts and efficiencies totaling $653 million
- Anticipated Federal funds equaling $641 million
- Fund transfer totaling - $465 million
- New revenue equaling - $857 million
The house budget includes implementation of SB 6503 for assumed savings of $48.2 million. It also includes savings of $3.1 million by conversion of some state liquor stores to private ownership.
It is unclear how the house budget writers have dealt with state employee health premiums.
Fund levels for Public Health have been maintained.
The House is schedule to release its plans for raising $857million in new revenue over the net several days.
SENATE & HOUSE 2010 SUPPLIMENTAL TRANSPORTATION BUDGETS
Both the Senate and House budgets show almost a billion dollar increase over the $7.5 billion appropriated in April 2009. This additional funding comes from a combination of federal stimulus funds and federal grants competed for and won by the state of Washington. This infusion of additional revenue is estimated to create 3,000 new jobs to our state’s economy.
Good news for our WSDOT members: The Transportation Department was awarded a $35 million grant for the North-South Spokane highway.
Local 17 members contact your legislators ask them to oppose SB6503 (the furlough bill). Request that they appropriate funds sufficient to cover the increase in employee health care premiums.