EYE ON OLYMPIA: State House, Senate look at $300 million gap in budget proposals

OLYMPIA — The first week of the special session was relatively quiet for the North Olympic Peninsula representatives in the state House.

The full lower chamber met only one day last week as representatives waited for their counterparts in the Senate to vote on bills that were not acted on during the regular session that ended last month.

That had to be done before the houses could sit down to resolve the 
$300 million gap between their two proposed budgets.

House representatives and their staff were sent home after Tuesday, leaving only those tasked with resolving the budget crisis, such as Rep. Kevin Van De Wege, with much to do.

The Sequim Democrat and House majority whip said House leaders spent the week “figuring out our game plan” for budget negotiations with the Senate.

“We had no official meetings,” he said, “just divided up the work.”

For Van De Wege, that included issues regarding labor and industries, as well as pension and ferry costs.

“We’ll be back on Monday [today] to start turning legislation,” he said.

Freshman Rep. Steve Tharinger, D-Sequim, said he used the free time last week to catch up on his work as a Clallam County commissioner.

Tharinger and Van De Wege said the full House wasn’t kept active last week in order to reduce the cost of the special session, which can run as high as $20,000 a day.

Sen. Jim Hargrove, who also represents the Peninsula, said he will also be working on budget issues today, primarily on legislation that would reduce corrections costs by limiting supervision of some released inmates and reducing some prison terms.

$5.3 billion deficit

The state Legislature must deal with a $5.3 billion deficit before approving the 2011-2013 budget that begins in July.

One of the main differences between the two chambers’ proposed budgets is that the House expects $300 million in additional revenue by privatizing the state’s wholesale liquor distribution.

Hargrove, D-Hoquiam, said he doesn’t expect the Senate to approve such a move.

“Unless other revenue is found, they’re just going to have to make additional cuts like the Senate did,” he said.

That additional revenue could come through a handful of bills co-sponsored by Tharinger and Van De Wege.

HB 2022, sponsored by Tharinger, would help fund Medicare by extending sales and use taxes to elective cosmetic services.

HB 2078, sponsored by Tharinger and Van De Wege, would help fund kindergarten through third-grade education by capping the business and occupation tax deduction for interest on first mortgages or deeds of trust on residential properties, and eliminating the nonresident sales tax exemption.

HB 2087, sponsored by Van De Wege and Tharinger, would help fund mental health services by repealing the nonresident sales tax exemption.

Tharinger admitted it will be tough for the bills to gain much traction because legislation that would raise revenue must be passed with a two-thirds vote.

“It’s tough,” he said. “I think there’s no question.”

The bills could be passed by a simple majority if they are approved by voters, but Tharinger didn’t appear confident during an interview Saturday that there would be enough support among voters to enact the bills through referendums.

“I’m just not convinced the voters want to vote on that stuff right now,” he said.

Van De Wege also wasn’t optimistic that the bills will make it to a floor vote.

He said the House is more restrictive on which bills go to a vote during a special session. And, unless legislators are confident they would also pass the Senate, it’s unlikely they will go that far.

“We’re not going to run a bill unless the Senate is going to do it,” he said.

Asked about the bills, Hargrove said he would be surprised if they would make it past the House, but added: “Anything that the House gets out with a two-thirds vote will be seriously considered.

“I can’t say there is a two-thirds vote in the Senate.”

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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.

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