What's in a budget? WA Democrats want to increase spending by about $6 billion

The 2022 Washington state legislative session is set to end in about two weeks.

As the short, 60-day session flies by, House and Senate Democrats unveiled their proposed budget updates this week.

The state’s revenue picture just keeps getting rosier and rosier. That means state lawmakers have billions more to spend, save or return to taxpayers; Democrats are opting to spend more.

They argue their proposals ensure the state will also save enough to maintain a sufficient rainy day fund. Not surprisingly, Republicans aren't sold — they're not alone on at least one point.

Majority Democrats in the House and Senate want to grow the budget by about $6 billion. Spending priorities include: $2 billion for a transportation infrastructure package; more money for public schools to offset enrollment drops; additional funds to address homelessness; and added spending for behavioral health and other vulnerable populations.

State Senator Christine Rolfes, chair of the Senate Ways and Means Committee, says that price tag is "necessary and optimistic because we need to put resources into the economic recovery from the pandemic."

Republicans are blasting Democrats' spending plans, though, because they do not include across-the-board tax cuts.

HAPPY TAX HOLIDAY?

Instead, Democrats are proposing a Labor Day weekend sales tax holiday.

House Majority Leader Pat Sullivan says they picked Labor Day because it coincides with back-to-school shopping, "acknowledging that there’s a lot of expenses that lower-income folks have to spend for school."

Under the proposal, the sales tax would be waived on purchases up to $1,000.

Republicans say it's not enough. They note the state is expected to take in billions more in revenue as a result of the rebounding economy.

They want a permanent, 1% reduction in the state sales tax.

Majority Democrats aren't likely to agree to that, but they are open to a few other ideas.

For example, Senate Democrats want to make Discover Passes for state parks and lands free for one year. They would also fund grants so that state and county fairs could offer free admission this year.

And with inflation on the rise and the state flush with cash, Senate Democrats want to nearly double an existing tax credit for small businesses.

Still, minority Republicans say those ideas won't do enough to put money back in taxpayers' pockets.

The thing is: Democrats have crafted their budget proposal in such a way that they don't need a single Republican vote to pass it.

PASS (ON) GAS

Democrats are still pursuing a plan that would spare Washingtonians at the gas pump, though.

Despite complaints from Oregon, Idaho and Alaska, lawmakers are advancing a proposed tax on gasoline and diesel exported to neighboring states from Washington refineries.

RELATED: Democrats in Olympia undeterred by anger from Oregon, Idaho and Alaska over targeted fuel tax

The proposed 6-cents-per-gallon exported fuel tax would raise an estimated $2 billion over 16 years from out-of-state drivers. It is proposed to pay for a range of transportation infrastructure inside Washington. The tax proposal has stoked bipartisan anger and threats of retaliation in recent days from politicians in some of the affected states.

Sympathetic Republicans in Olympia have tried three times now to strip the offending tax out of the larger transportation spending and revenue package. State Rep. Eric Robertson is among them.

“We certainly don’t want to get into a trade war or lengthy litigation that would otherwise diminish our ability to move forward," he argued this week.

In fact, a group of Alaska legislators is now proposing a retaliatory tax that would hit Pacific Northwest drivers.

State Representative Kevin McCabe, an Alaska Republican, has introduced a bill to impose a $15 surcharge on every barrel of crude oil exported to Washington refineries.

"Frankly, I'm tired of being thought of as a Washington colony," McCabe said this week. "And I'm tired of them depending on us and taxing us for their needs and ignoring ours."

And the Idaho House of Representatives vowed to take "any and all actions" to block Washington's proposed new fuel tax.

Still, Democratic sponsors of the transportation package are pressing ahead anyway to get something on the governor's desk before this year's legislative session ends.

Correspondent Tom Banse contributed to this story.