After a long weekend of discussions and negotiations, the Washington House and Senate each released an early budget action proposal.

Both proposals woud reduce the current budget shortfall, estimated at $1.4 billion, by $479.7 million. Nearly $51 million in both of the proposals will come from new revenue earned from quicker conversions of unclaimed property by the Department of Revenue. In addition, the proposals reduce agency and program budgets by $96.5 million with an additional $226.4 million in policy level changes. Finally the remainder of the funds come from $23.6 million in fund tranfers and an additional $82 million in unspent money from the prior biennium.

The proposals make minor changes to higher education.  Both proposals invest $1 million in the Aerospace Training Student Loan Program for students in certain aerospace training or educational programs. In addition both proposals reduce funding to higher education institutions to reflect savings in Washington’s Workers’ Compensation program due to reform legislation that passed during the 2011 legislative session.

The early action proposals by the Legislature still leave a $1.5 billion (approx. $900 million budget shortfall/ approx. $600 million in reserves) budget problem to be resolved in the 2012 supplemental session. It is expected that to reach a balanced approach the Legislature will need to enact additional reductions and administrative reforms as well as consider a revenue package(s).

In the meantime with an eye to adjournment as early as Friday, the House Ways & Means Committee and the Senate Ways & Means Committee will hold a public hearing on their respective proposals this afternoon. The House Ways & Means Committee has also scheduled an executive session on the House proposal tomorrow morning.