“In this budget cycle, we’ve dealt with a change in our expected budget picture of about $12 billion,” Rep. Ross Hunter said. “We’ve dealt with about $11 billion of that problem” with cuts, federal funds and other actions to address “what we hope is really a once-in-a-century budget problem.”

Watch live on TVW now and read-along here by updating your browser.

He said he’s laying out a five-piece, $758 million revenue package. “Part one, we’ve made changes to House Bill 3176 and we’re incorporating them into the larger bill, which we will hear tomorrow in Finance” at 9 a.m. That was Hunter’s earlier bill to close tax loopholes and end exemptions. “We’ve made real changes. We’re going to use the funds from this to deal with maintaining the lower class sizes … and maintaining financial aid for college students.” He said the original plan has been out for three weeks.

Part three removes sales tax exemptions on some products and services — like elective plastic surgery, candy and gum, custom software, janitorial services and sales tax on bottled water. “This is very different from the governor’s proposal,” he said.

See the entire plan in the post below.

First question: Does he have 50 votes for the plan? “I can’t tell you I’ve got exactly 50 today … unlike many other proposals that are floating around today, I think this one’s pretty likely.”

He said he’s not a fan of increasing the sales tax. “A large percent of that are paid by small business across the state,” he said. What the House tries to do, however, is “close loopholes” and end exemptions that may not be fair in the current economy. (more…)

Tags: House, taxes

This just in from the House:

The House proposal would generate about $758 million for the 2009-2011 biennium, primarily by ending certain tax exemptions and closing tax loopholes. Additional anticipated budget actions will generate about $100 million.

• Part One is an amended version of Hunter’s House Bill 3176 which closes about $385 million in tax loopholes and tax avoidance schemes. The funds will be used to maintain lower class-size in grades K-4, provide levy equalization around the state, and maintain financial aid for college students.
• Part Two increases the cigarette tax by $1 per pack of cigarettes and equalizes the tax on other tobacco products. The $111 million raised will help maintain the Basic Health Plan, Apple Health for Kids, and tobacco prevention programs.
• Part Three ends the sales tax exemption for products and services such as elective cosmetic surgery, candy and gum, custom software, janitorial services and bottled water. It generates about $163 million for public health, children’s dental care, children’s health, and services for the disabled.
• Part Four increases B&O rates by 0.5 percent for certain professional service providers such as lawyers and accountants. It also removes a B&O tax exemption on investment earnings beyond $250,000 for non-financial firms. It raises about $99 million for financial aid, levy equalization, and natural resources.
• Part Five includes other anticipated operating budget actions and raises $100 million for natural resources and public education.

Tags: House, tax

Rep. Kelli Linville said cuts in the House budget include $149 million for early education, $80 million for higher education, the “early actions savings” that’s already been passed, $30 million for information technology reform, and $48.2 million for the furlough bill that hasn’t passed the House yet.

In higher education, she said state need grants, WAVE and other student aid are maintained, but higher ed will get a 2 to 4 percent cut.

In DSHS, Apple Health and Senior Services are among the programs they restore, but the Working Connections Child Care is cut.

Tags: Budget, House

Just a quick note: If you’re trying to reach a lawmaker or staffer in Olympia right now, don’t use e-mail. The computer system on the capitol campus is down, a computer systems representative with the Legislature told me.

The system died about an hour after lawmakers and staffers reported to work for the first day of the 2010 legislative session. E-mail and file access had not been restored as of 11:20 a.m. Update: As of 11:50, they are recovering services. E-mail and files saved on the system should be available soon.

The first floor session of the day is scheduled to start at noon for both the House and Senate.

Tags: computer systems, House, Senate

Here’s the rundown from Jennifer Huntley about what’s to come on The Impact tonight. The show airs at 7 and 10 p.m. on TVW — or anytime online (as soon as it’s available, of course).

• The Department of Corrections is facing millions in cuts to its health care system. We’ll go inside Stafford Creek Corrections Center in Aberdeen to see how officials are managing the cuts. We’ll also talk with the Secretary for the Department of Corrections Eldon Vail to get his thoughts on a number of cost-saving measures that are making their way through the legislature this session.

• Expanding benefits to domestic partners is taking center stage this session. We’ll talk to both sides of the aisle and hear testimony on the bill.

• And an early childhood preschool program could be cut in half in the House budget proposal. Find out what other education programs facing funding shortfalls from education leaders in the House.

Tags: Budget, House, Senate, The Impact, TVW

I’m working on putting together tonight’s Legislative Review. Here’s what I’m working with:

Budget bill discussion.

Gregoire’s ferry cuts and media briefing.

Also: Dogs in bars, youth hunting and more. Watch tonight at 11 p.m. or tomorrow morning at 7:45 a.m.

Tags: Budget, ferries, Governor, House

Read all about it here.

Tags: Budget, cuts, House

Watch TVW right now for discussion of House Bill 1694, the “early action savings” bill that would cut about $600 million from the remaining five months of the state budget.

Rep. Gary Alexander said early savings are good, but passing a full supplemental budget would have been better.

More soon after the jump. (more…)

Tags: Budget, cuts, House

Gov. Chris Gregoire issued a statement about the Senate’s bill to cut about $105 million in spending. She said the Senate “acted quickly to pass additional savings” and that she wants “to make certain the plan allows enough flexibility to adequately staff vital state functions.”

“It will take all of us to solve this budget problem, so I am pleased to hear the House is working to pass its supplemental budget in the coming days.”

Tags: Budget, Governor, House, Senate

The press conference to announce the “everything but marriage” bill just started.

Rep. Jamie Pedersen said the bill would extend about 300 remaining rights and responsibilities of marriage to couples in domestic partnerships.

Watch live on TVW now.

One couple from Tacoma spoke: One partner is a police officer, and they said that, if this bill passes and if anything were to happen to her in the line of duty, she knows her partner would get the same benefits as another officer’s spouse.

Tags: Domestic partnerships, House, Senate