Gov. Gregoire Lauds Senators' Savings Proposal

For Immediate Release: February 15, 2006

OLYMPIA � Governor Chris Gregoire today said she was pleased that the state Senate is nearing passage of a supplemental budget proposal that embraces the governor�s framework of saving for the future while making vital targeted investments.

�This is a positive step in the discussions,� said Governor Gregoire. �I will negotiate with the Senate and the House in coming days to agree on a budget that best serves the citizens of Washington.�

Governor Gregoire complimented Sen. Margarita Prentice, chair of the Washington State Senate Ways and Means Committee, for a 2006 supplemental spending proposal that saves $956 million, and called the plan �overall strategic, responsible and accountable.�

�I thank Senator Prentice, Senator Mark Doumit, and the hard-working Ways and Means Committee who put in long days and gave a lot of thought to make a strong proposal for the full Senate to consider,� Governor Gregoire said. �I�m also grateful for the close working relationship we have with Senate Majority Leader Lisa Brown,� added Governor Gregoire.

Governor Gregoire in December proposed a supplemental budget that saves $905 million of a then-projected General Fund reserve of $1.4 billion. She also proposed $281 million in required spending to meet school and social services enrollments and caseloads, pensions and other necessities.

And, Governor Gregoire proposed another $223 million in targeted investments to help high school students meet academic standards, reduce dependence on foreign oil, clean up Puget Sound, and launch a real commitment to early learning.

Governor Gregoire said she was happy that a new quarterly revenue forecast released today expects the economy to produce another $158.9 million for the state�s coffers.

�This is another indication that our economy is strong, and our citizens are thriving,� Governor Gregoire said.

But she repeated caution that her Council of Economic Advisors believes the economy will level off as the housing market cools, interest rates rise, and volatility grows in the oil markets.

�We need to stay with a disciplined approach. This is a supplemental year, and that should be our focus � to supplement spending in appropriate and targeted areas but prepare for the new costs we face in the 2007-2009 budget,� Governor Gregoire said.

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