Washington House passes two-year $44.9 billion state budget

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The Washington House has passed a $44.9 billion state budget that seeks to spend an additional $1.9 billion on education over the next two years in order to address a court mandate.

The spending plan passed the Democratic-controlled chamber Friday on a party line 50-48 vote.  The House did not vote on the $3 billion in taxes in the plan, as Democrats say they won’t likely take a floor vote before completing negotiations with Senate Republicans, who passed their own $43 billion two-year budget plan earlier last month.

Those taxes, which include a business and occupation tax increase on the state’s highest grossing businesses – while exempting smaller businesses from the tax – and a 7 percent capital gains tax on earnings from the sale of stocks, bonds and other assets, will have a public hearing before a House committee this week.

Senate Republicans’ budget proposal relies on a plan that raises property taxes for some districts while lowering the tax in others.

Both chambers must now begin the work of negotiating a final compromise that must satisfy a state Supreme Court requirement that the state fully fund education.

Among the differences between the budgets put forth by both chambers is how they address local property tax levies.  The Senate plan would replace local school levies with a statewide uniform rate earmarked for schools, while the House plan would lower the local levy rate, but not eliminate local levies completely.  (AP)