By Rachel La Corte
The Associated Press
OLYMPIA — Gov. Jay Inslee signed a new two-year state operating budget just before midnight, averting a government shutdown that state officials had prepared for in case the new spending plan wasn’t in place by day’s end.
The Democratic governor signed the $38.2 billion budget Tuesday, a day after lawmakers raced to pass the plan.
Inslee also signed a $3.9 billion construction budget that pays for local projects across the state.
Inslee, joined by several legislative leaders from both parties and budget negotiators from both chambers, called the plan a “darn good budget for the people of the state of Washington.”
“Our economy is rebounding and so is our ability to invest in our people,” Inslee said.
“After years of deep cuts in every part of our budget, we’re finally reinvesting in our state.”
Thousands of state workers had been warned last week that they could face temporary layoffs because much of state government would need to shut down if a budget wasn’t in place by midnight Tuesday.
Lawmakers moved swiftly to pass the spending plan out of both chambers Monday night to avoid a partial shutdown that would have started Wednesday.
The bipartisan budget agreement spends an estimated $1.3 billion on K-12 education, and it phases in tuition cuts at universities and community and technical colleges.
By the end of the budget’s second year, the state will reduce the cost of tuition at the University of Washington and Washington State University by 15 percent.
Students at the remaining four-year universities will see a 20 percent cut, and tuition at community and technical colleges will drop by 5 percent.
Senate Majority Leader Mark Schoesler lauded the tuition cuts, saying Washington was leading the nation with the move.
“If you’re concerned about college affordability and student debt, this was something worth waiting for,” the Republican said.
Lawmakers in the Democratic-controlled House and Republican-controlled Senate had struggled for months on the two-year state budget because of differing ideas on how to address a state Supreme Court mandate to put more money into the state’s education system.
Democrats initially sought a new capital-gains tax, while Republicans insisted that no taxes were needed because of increasing state revenue.
Ultimately, Democrats dropped the new tax idea, and Republicans agreed to close some tax exemptions.
Rep. Ross Hunter, budget writer for House Democrats, said both sides had to make compromises.
“It’s in the interest of the people of the state that we’ve come to an agreement, and I’m comfortable with that agreement,” he said.
The budget also fully pays for collective bargaining agreements for state employees and raises for teachers, and it puts more money into the mental health system and other social service programs.
Lawmakers also started to address a voter-approved initiative to reduce class sizes that would cost $2 billion over the next two years if implemented.
The House voted 72-26 late Monday night to delay that measure for four years.
When it came up in the Senate on Wednesday morning, it did not receive the 33 votes needed to pass because Democrats wouldn’t give their support.
The Senate then adjourned until Friday.
Lawmakers have said there’s time to address the budgetary implications of the class-size measure, but it’s likely to come up again before the Legislature adjourns its third overtime session that began Sunday.
Early Wednesday, both chambers passed a $16.1 billion transportation revenue bill that includes an 11.9-cent increase in the gas tax over two years, which now heads to the governor.
To complete the package, the House still needs to pass two Senate-approved bills, including one that designates the money to specific projects.
Inslee also signed a measure on Tuesday that makes several changes to the state’s recreational marijuana market, including eliminating the three-tier tax structure and replacing it with a single excise tax of 37 percent at the point of sale.
To encourage more cities and counties to allow marijuana businesses, the bill directs the state to share pot revenue with jurisdictions that do so.
It would also allow them to adopt more flexible zoning for where pot grows and stores can be located.