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Originally published Thursday, December 18, 2008 at 9:41 AM

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Wash. gov offers no-tax budget for $6B shortfall

Gov. Chris Gregoire is proposing a no-new-taxes state budget that would fix a nearly $6 billion deficit with heavy spending cuts, money transfers and some borrowing.

Associated Press Writer

OLYMPIA, Wash. —

Gov. Chris Gregoire is proposing a no-new-taxes state budget that would fix a nearly $6 billion deficit with heavy spending cuts, money transfers and some borrowing.

Gregoire's plan halts raises for teachers and state employees, and suspends new training money for home-care workers. Those steps would violate voter-approved initiatives and previously negotiated labor contracts.

The Democratic governor wants to cut state payments to four-year universities by 13 percent and tap the state's new Rainy Day Fund. She also wants to raid some smaller state bank accounts - including $200 million in lottery money from the construction budget, which would be repaid with bonds.

Lawmakers meet in early January to begin considering Gregoire's proposal.

Copyright © 2008 The Seattle Times Company

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