Washington Democrats propose rival budget plans for shortfall

Washington's Democratic lawmakers have proposed different budget plans to address the state's financial challenges. Both the House and Senate agree that increasing taxes on wealthy individuals and corporations will be necessary. However, their approaches to spending differ significantly. Senate Democrats aim to balance the budget by delaying expansions of early learning and childcare programs, furloughing state workers, and using state reserves to boost funding for special education and public schools. Their proposed budget totals $78.5 billion, which includes $6.5 billion in new spending. In contrast, House Democrats have opted against furloughing state workers and plan to reduce funding for special education and school operations by about $1 billion. Their budget proposal amounts to $77.8 billion with less reliance on new revenue. Both budgets anticipate raising substantial funds through new taxes over the next four years, with the Senate expecting $17 billion and the House $15 billion. Votes on these budgets are scheduled to take place soon, but major tax bills will depend on further negotiations among Democrats. Governor Bob Ferguson is involved in discussions about budget plans. While he desires all cost-cutting options to be explored before new taxes are considered, there are disagreements on certain funding requests, such as law enforcement grants. The legislative session ends on April 27, and budget proposals need to be reconciled. The economic environment complicates the budgeting process, as state tax revenues have been declining and inflation has increased costs. Both plans propose delaying certain expansions related to early learning and childcare programs. However, they differ fundamentally on how to address budget reserves and workers’ benefits, with Senate Democrats suggesting pay cuts for state employees that the House does not support. Public hearings on these budgets are scheduled to start on Tuesday.