The Republican-led Senate Majority Coalition on Tuesday released its $43 billion two-year state budget proposal that would add $1.87 billion in state basic education funding, provide a $1,000 pay increase for most state employees, and pay down the state’s unfunded pension liability by $700 million.  The proposal would rely on the state’s projected revenue growth of some $3.0 billion and restructuring of local property tax levies for schools to fund the spending plan without general tax increases.

Under the proposal, which includes the state operating budget, SB 5048, and also SB 5875, an amended version of the basic education funding plan passed by the Senate in February (SB 5607), total education funding would increase from the current $18.2 billion to $21.9 billion in the 2017-19 biennium, dedicating $12,500 to each student, with more monies available for homeless, low-income and special needs students. The amount includes monies raised through a statewide property tax levy rate for schools that replaces the current system of local levies, which has left school districts with lower property values at a disadvantage.

The property tax levy restructuring proposed in SB 5875 would set the statewide property-tax rate at $1.55 per $1,000 of assessed value to fund basic education, down from the $1.80 per $1,000 that was originally proposed in SB 5607. The state would collect the property tax and then redistribute it to school districts.

During the press conference announcing the budget proposal, the chief Senate budget writer, Sen. John Braun (R-Centralia), pointed out that the Senate measure rejects the 2017-19 state worker pay increases negotiated between Governor Inslee and state employee unions last summer. Sen. Dino Rossi (R-Bellevue), added that the negotiations behind closed doors during the governor’s campaign gave the appearance of corruption. He said that’s why he sponsored SB 5533, which passed the Senate earlier this month, to prohibit contributions to gubernatorial campaigns by unions that negotiate employee contracts with the governor.

Instead, the Senate plan would save hundreds of millions of dollars by funding negotiated raises for the Washington State Patrol and some corrections workers and giving most state employees a $1,000 pay increase over the next two years, as well as maintaining current health benefits.

The budget proposal would also provide an additional $250 million for mental health funding and appropriate $1.2 million for law enforcement training to de-escalate lethal force situations.

Sen. Braun said that the Senate proposal is a balanced, responsible approach that meets the requirements of the state Supreme Court’s education funding order while providing for the state’s other needs without general tax increases.

The Senate Ways and Means Committee held a public hearing on the bill Tuesday afternoon and is expected to pass it out of committee on Thursday. House Democrats are expected to release their version of the state budget next week.

Governor Inslee submitted his budget proposal earlier this session, including a package of new taxes on carbon emissions and capital gains, along with increases in the state’s business and occupation tax to fund a $46.7 billion two-year spending plan.

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