Wash. state lawmakers line up some early savings

OLYMPIA — Washington's Legislature got a head start on its cost-cutting chores Tuesday, discussing bills that would close state offices once a month, extend a wage freeze for nonunion workers and trim about 175 full-time government jobs.

The measures are part of the Legislature's plan for a quick response to the state's budget deficit, pegged at about $2.6 billion through June 2011. Lawmakers hope to pass the bills soon and send them to Gov. Chris Gregoire for final approval.

A fourth bill, suspending cash bonuses for state workers, rounds out the Legislature's proposed early savings plan. The overall savings of the package isn't yet clear, but early estimates put the value at about $150 million.

The plan for once-a-month office shutdowns could save about $90 million, according to a preliminary estimate from legislative staff. But the shutdowns also would spur state worker furloughs, a move opposed by state employee unions.

Although such furloughs wouldn't be in full force until negotiated with union-represented employees, union leaders say they've already sacrificed enough by forgoing cost-of-living raises and state pension payments.

"I think if state employees are taking the cut here, it's time to look at tax exemptions on a temporary basis and look at an overall revenue solution," Washington Federation of State Employees Director Greg Devereux told the Senate Ways and Means Committee.

A long list of workers would be exempt from furloughs under the bill, including police, corrections officers, college instructors, and state park and ferry workers.

Also discussed Tuesday was a miniature version of the overall state appropriations bill that will eventually balance the state budget. The "early savings" bill would save about $47 million in the state's main checking account by cutting staff positions and implementing various efficiencies, such as reduced printing and contracting costs.

Overall, the bill would chop the equivalent of about 175 full-time jobs from the government work force, although officials said some of those jobs already are vacant.

The bill also would save money by more quickly moving people from subsidized nursing home care to less expensive treatments, and transferring health care for some prison inmates to Medicaid, so their medical costs can be shared with the federal government.

The proposed wage freeze would build on a similar plan enacted last year, when the Legislature began grappling with its current budget woes. The freeze would affect nonunion workers at state agencies, colleges and universities.

Lawmakers are under some added pressure to quickly find savings this year: Treasurer Jim McIntire says the state needs about $500 million by September to avoid running out of operating cash.