In Olympia, the state House passed its version of a one-point-six ($1.6) billion dollar supplemental operating budget – a plan Republicans say spends too much and fails to plan for future economic downturns. John Sattgast from the Washington House Republicans reports from the state Capitol.
SATTGAST: Republicans argued strongly against the Democrat budget, which they say relies on a massive capital gains income tax increase, raids the state’s rainy day fund during economic prosperity and boosts spending by 15 percent.
During the Monday night debate, Republican Representative David Taylor said the proposal repeats the failed policies of government spending faster than personal income.
TAYLOR: “Many of our families are living paycheck to paycheck. We’re due for a recession. It’s just a matter of time.”
SATTGAST: Dayton Representative Terry Nealey also warned against spending down the rainy day fund ahead of a recession that could come in the next five years.
NEALEY: “Now is a good time to put away some money to take out the dips and rises of our budget each year. But we’re not doing that. We’re spending it all.”
SATTGAST: Vancouver Representative Vicki Kraft said it makes no sense to raise taxes when the state is flush with money.
KRAFT: “Seven percent capital gains tax on Washingtonians. Why are we doing this when we have a windfall of $1.3 billion dollars in unexpected, extra revenue coming in in the next four years?”
SATTGAST: The measure passed along party lines, 50 to 46. It now goes to a House/Senate conference committee, which will try to hammer out a compromise. John Sattgast, Olympia.