Yesterday, both the House and Senate Republicans and the House Democrats issued their proposals to balance the $1.2 billion shortfall in the current fiscal year.

Both proposals come on the heels of a detailed list issued by the Governor. Senate Democrats have yet to issue a proposal to balance the current budget shortfall.

House Republicans

Rep. Gary Alexander, current Ranking Minority Leader on the House Ways & Means Committee, issued a letter outlining a general framework for balancing the current budget. 

The House Republicans agree with many of the suggestions the Governor put forth in her proposed list of reductions. In addition, the House Republicans suggested items not included on the Governor’s proposed list, including suspension of all-day kindergarten and redefining the Temporary Assistance for Needy Families program.

The letter also noted areas of disagreement between the House Republicans and the Governor. Rep. Alexander spoke to concerns regarding retroactive actions on moneys already spent and the use of delaying payments to balance the budget.

Finally, the House Republicans offered a compromise with regard to employee health care benefits, suggesting a graduated ratio based on income. The proposal would begin with 14% and end with 26%, with the median around the 20% mark beginning in January. The Governor proposed a shift from a ratio of 74 state to 26 employees.

Senate Republicans

Senate Republicans issued a much more detailed list of proposals to balance the current budget shortfall.  The list of proposals range from redirecting revenue streams to the General Fund to reductions to all state agency budgets to reductions in state and higher education employee salaries.

With regard to higher education, the Senate Republican proposal:

• Supports the Maintenance of Effort requirement for higher education
• Calls for examination of non-state need grant and work study financial assistance programs
• Reduces tuition waiver authority

House Democrats

Speaker Chopp and Representative Sullivan (Majority Leader-Elect) issued a preliminary 
list of reduction ideas. The list put forth by the  House Democrats does not include some of the proposed reductions put forth by Governor Gregoire, such as elimination of the Basic Health Plan and reductions to Levy Equalization.

With regard to higher education, the House Democrat proposal suggests:

• Reductions to state financial aid programs, with the intent to minimize impact to students
• Supports the Maintenance of Effort requirement for higher education