HJ73

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SEVENTY-THIRD DAY

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MORNING SESSION

__________

House Chamber, Olympia, Wednesday, March 24, 1993

The House was called to order at 10:00 a.m. by the Speaker (Representative Patterson presiding).

The Clerk called the roll and a quorum was present.

The Speaker (Representative Wang presiding) assumed the chair.

The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Ryan Barabe and Cameron Summers. Prayer was offered by Representative Don Carlson.

The Speaker assumed the chair.

MESSAGE FROM THE SENATE

March 22, 1993

Mr. Speaker:

The Senate has adopted:

HOUSE CONCURRENT RESOLUTION NO. 4416,

and the same is herewith transmitted.

Brad Hendrickson, Deputy Secretary

Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.

There being no objection, the House advanced to the fourth order of business.

INTRODUCTIONS AND FIRST READING

HB 2108 by Representatives Shin, Brumsickle, Zellinsky, Sheldon and Flemming

AN ACT Relating to unlawful vehicle sales; amending RCW 46.70.021; and prescribing penalties.

Referred to Committee on Commerce & Labor.

HB 2109 by Representatives G. Fisher, Wang, Ballard, Foreman, Morris, Linville, Dyer, Silver, Scott, Rayburn, Zellinsky, Kessler, Jones, Talcott, Cooke, Anderson, Campbell, Orr, Basich, King, Quall, Karahalios, L. Johnson, Lemmon, Thibaudeau, R. Meyers, Wolfe, Forner and Cothern

AN ACT Relating to nursing homes; amending RCW 82.04.050, 74.46.481, 74.46.020, 74.46.380, 74.46.530, and 74.46.495; adding a new section to chapter 74.46 RCW; adding a new chapter to Title 82 RCW; providing an effective date; and declaring an emergency.

Referred to Committee on Revenue.

HB 2110 by Representative R. Fisher; by request of Department of Transportation

AN ACT Relating to priority programming of multimodal solutions to address state highway deficiencies; amending RCW 47.05.010, 47.05.021, 47.05.030, 47.05.035, and 47.05.051; adding a new section to chapter 47.05 RCW; and repealing RCW 47.05.040, 47.05.055, 47.05.070, and 47.05.085.

Referred to Committee on Transportation.

HB 2111 by Representative R. Fisher; by request of Office of Financial Management

AN ACT Relating to transportation appropriations; amending 1991 sp.s. c 15 s 4 (uncodified); amending 1991 c 15 s 8 (uncodified); amending 1992 c 166 s 8 (uncodified); amending 1992 c 166 s 9 (uncodified); amending 1992 c 166 s 19 (uncodified); amending 1992 c 166 s 20 (uncodified); amending 1992 c 166 s 21 (uncodified); amending 1992 c 166 s 22 (uncodified); and amending 1991 sp.s. c 15 s 37 (uncodified).

Referred to Committee on Transportation.

On motion of Representative Peery, the bills listed on today's introduction sheet under the fourth order of business were referred to the committees so designated.

There being no objection, the House advanced to the fifth order of business.

REPORTS OF STANDING COMMITTEES

March 22, 1993

SB 5053 Prime Sponsor, A. Smith: Requiring the department of licensing to collect the local vessel excise tax on behalf of the counties. Reported by Committee on Transportation

MAJORITY recommendation: Do pass. Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Heavey; Horn; Johanson; J. Kohl; Miller; H. Myers; Orr; Patterson; Quall; Sheldon; Shin; Wood; and Zellinsky.

Excused: Representative R. Meyers.

Passed to Committee on Rules for second reading.

March 23, 1993

SB 5070 Prime Sponsor, Prentice: Using labor relations consultants. Reported by Committee on Commerce & Labor.

MAJORITY recommendation: Do pass. Signed by Representatives Heavey, Chair; G. Cole, Vice Chair; Conway; King; Springer; and Veloria.

MINORITY recommendation: Do not pass. Signed by Representatives Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; and Horn.

Passed to Committee on Rules for second reading.

March 23, 1993

ESSB 5131 Prime Sponsor, Law & Justice: Authorizing destruction of confiscated firearms. Reported by Judiciary.

MAJORITY Recommendation: Do pass with the following amendments:

On page 4, after line 36, insert the following:

"New Section. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, safety or support of the state government and its existing public institutions, and shall take effect immediately."

On page 3, line 13, after "are" strike "judicially forfeited or" and insert ": (i) Judicially forfeited and no longer needed for evidence; or (ii)"

On page 3, beginning on line 14, after "63.32.010" strike all material through "evidence," on line 15 and insert "or 63.40.010;"

On page 3, beginning on line 24, after "63.32.010" strike all material through "evidence" on line 25 and insert "or 63.40.010"

On page 3, beginning on line 26, after "(b)" strike all material through "subsection," on line 36 and insert "Except as provided in (c) of this subsection, of the inventoried firearms"

On page 4, at the beginning of line 18, strike "(d)" and insert "(c)"

On page 4, after line 22, insert the following:

"(d) Firearms in the possession of the Washington state patrol on or after the effective date of this act that are judicially forfeited and no longer needed for evidence, or forfeited due to a failure to make a claim under RCW 63.35.020, must be disposed of as follows: (i) Firearms illegal for any person to possess must be destroyed; (ii) the Washington state patrol may retain a maximum of ten percent of legal firearms for agency use; and (iii) all other legal firearms must be auctioned or traded to commercial sellers. The Washington state patrol may retain any proceeds of an auction."

Signed by Representatives Appelwick, Chair; Ludwig, Vice Chair; Chappell; Johanson; Mastin; H. Myers; Riley; Scott; and Wineberry.

MINORITY Recommendation: Do not pass. Signed by Representatives Padden, Ranking Minority Member; Campbell; and Long.

Excused: Representatives Ballasiotes, Assistant Ranking Minority Member, Forner, Locke, Schmidt and Tate.

Passed to Committee on Rules for second reading.

March 22, 1993

SSB 5148 Prime Sponsor, Transportation: Adjusting penalties for improper use of disabled parking spaces. Reported by Committee on Transportation.

MAJORITY Recommendation: Do pass. Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Heavey; Horn; Johanson; J. Kohl; Miller; H. Myers; Orr; Patterson; Quall; Sheldon; Shin; Wood; and Zellinsky.

Excused: Representative R. Meyers.

Passed to Committee on Rules for second reading.

March 22, 1993

SSB 5179 Prime Sponsor, Ecology & Parks: Promoting vessel safety. Reported by Committee on Environmental Affairs.

MAJORITY Recommendation: Do pass with the following amendments:

On page 2, line 28, strike "this section" and insert "sections 1 through 5 of this act"

On page 2, line 30, after "required" strike all material through "revenue" on line 31 and insert "under RCW 88.02.020 to display a decal or that is exempt from registration pursuant to RCW 88.02.030(10)"

On page 3, line 12, strike "is a violation of this chapter" and insert "shall be unlawful"

On page 3, line 16, strike "is a violation of this chapter" and insert "shall be unlawful"

Signed by Representatives Rust, Chair; Flemming, Vice Chair; Van Luven, Assistant Ranking Minority Member; Bray; Edmondson; Foreman; Hansen; Holm; J. Kohl; Linville; Roland; and Sheahan.

Excused: Representatives Horn, Ranking Minority Member and L. Johnson.

Passed to Committee on Rules for second reading.

March 22, 1993

SB 5229 Prime Sponsor, Vognild: Permitting the department of transportation and state patrol to adopt rules to govern state rest areas. Reported by Committee on Transportation

Excused: Representative R. Meyers.

Passed to Committee on Rules for second reading.

March 23, 1993

SB 5245 Prime Sponsor, A. Smith: Regulating the analysis of blood and breath alcohol. Reported by Committee on Judiciary

MAJORITY recommendation: Do pass with the following amendments:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 46.61.502 and 1987 c 373 s 2 are each amended to read as follows:

(1) A person is guilty of driving while under the influence of intoxicating liquor or any drug if the person drives a vehicle within this state ((while)):

(((1))) (a) And the person has 0.10 grams or more of alcohol per two hundred ten liters of breath within two hours after driving, as shown by analysis of the person's breath made under RCW 46.61.506; or

(((2))) (b) And the person has 0.10 percent or more by weight of alcohol in the person's blood within two hours after driving, as shown by analysis of the person's blood made under RCW 46.61.506; or

(((3))) (c) While the person is under the influence of or affected by intoxicating liquor or any drug; or

(((4))) (d) While the person is under the combined influence of or affected by intoxicating liquor and any drug.

(3) It is an affirmative defense to a violation of subsection (1) (a) and (b) of this section which the defendant must prove by a preponderance of the evidence that the defendant consumed a sufficient quantity of alcohol after the time of driving and before the administration of an analysis of the person's breath or blood to cause the defendant's alcohol concentration to be 0.10 or more within two hours after driving. The court shall not admit evidence of this defense unless the defendant notifies the prosecution prior to the omnibus or pretrial hearing in the case of the defendant's intent to assert the affirmative defense.

(4) Analyses of blood or breath samples obtained more than two hours after the alleged driving may be used as evidence that within two hours of the alleged driving, a person had 0.10 grams or more of alcohol per two hundred ten liters of breath or 0.10 percent or more of alcohol in the person's blood, pursuant to subsection (1) (a) and (b) of this section, and may be used as evidence that a person was under the influence of or affected by intoxicating liquors or any drug pursuant to subsection (1) (c) and (d) of this section.

Sec. 2. RCW 46.61.504 and 1987 c 373 s 3 are each amended to read as follows:

(1) A person is guilty of being in actual physical control of a motor vehicle while under the influence of intoxicating liquor or any drug if the person has actual physical control of a vehicle within this state ((while)):

(((1))) (a) And the person has 0.10 grams or more of alcohol per two hundred ten liters of breath within two hours after being in actual physical control of a motor vehicle, as shown by analysis of the person's breath made under RCW 46.61.506; or

(((2))) (b) And the person has 0.10 percent or more by weight of alcohol in the person's blood within two hours after being in actual physical control of a motor vehicle, as shown by analysis of the person's blood made under RCW 46.61.506; or

(((3))) (c) While the person is under the influence of or affected by intoxicating liquor or any drug; or

(((4))) (d) While the person is under the combined influence of or affected by intoxicating liquor and any drug.

(2) The fact that any person charged with a violation of this section is or has been entitled to use such drug under the laws of this state shall not constitute a defense against any charge of violating this section. No person may be convicted under this section if, prior to being pursued by a law enforcement officer, the person has moved the vehicle safely off the roadway.

(3) It is an affirmative defense to a violation of subsection (1) (a) and (b) of this section which the defendant must prove by a preponderance of the evidence that the defendant consumed a sufficient quantity of alcohol after the time of being in actual physical control of a motor vehicle and before the administration of an analysis of the person's breath or blood to cause the defendant's alcohol concentration to be 0.10 or more within two hours after being in actual physical control of a motor vehicle. The court shall not admit evidence of this defense unless the defendant notifies the prosecution prior to the omnibus or pretrial hearing in the case of the defendant's intent to assert the affirmative defense.

(4) Analyses of blood or breath samples obtained more than two hours after the alleged actual physical control of a motor vehicle may be used as evidence that within two hours of the alleged actual physical control of a motor vehicle, a person had 0.10 grams or more of alcohol per two hundred ten liters of breath or 0.10 percent or more of alcohol in the person's blood, pursuant to subsection (1) (a) and (b) of this section, and may be used as evidence that a person was under the influence of or affected by intoxicating liquors or any drug pursuant to subsection (1) (c) and (d) of this section."

Signed by Representatives Appelwick, Chair; Ludwig, Vice Chair; Padden, Ranking Minority Member; Ballasiotes, Assistant Ranking Minority Member; Campbell; Chappell; Forner; Long; Mastin; H. Myers; Riley; Schmidt; Scott; Tate; and Wineberry.

MINORITY recommendation: Do not pass. Signed by Representative Johanson.

Excused: Representative Long.

Passed to Committee on Rules for second reading.

March 23, 1993

SB 5309 Prime Sponsor, Owen: Modifying provisions relating to exchange of urban land for land bank land. Reported by Committee on Natural Resources & Parks

MAJORITY recommendation: Do pass. Signed by Representatives Pruitt, Chair; R. Johnson, Vice Chair; Dunshee; Linville; Sheldon; Valle; and Wolfe.

MINORITY recommendation: Do not pass. Signed by Representatives Morton, Ranking Minority Member; Stevens, Assistant Ranking Minority Member; Schoesler; and Thomas.

Passed to Committee on Rules for second reading.

March 23, 1993

SB 5313 Prime Sponsor, Government Operations: Deleting the expiration date for a portion of the surcharge on recording documents. Reported by Local Government.

MAJORITY Recommendation: Do pass. Signed by Representatives H. Myers, Chair; Bray, Vice Chair; Edmondson, Ranking Minority Member; Reams, Assistant Ranking Minority Member; R. Fisher; Rayburn; Romero; Springer; Van Luven; and Zellinsky.

Excused: Representatives Dunshee and Horn.

Passed to Committee on Rules for second reading.

March 23, 1993

SSB 5360 Prime Sponsor, Law & Justice: Creating new procedures for reporting domestic violence. Reported by Judiciary.

MAJORITY recommendation: Do pass with the following amendments:

On page 1, beginning on line 16, after "required" strike all material through "proficiency" on line 17

On page 2, beginning on line 33, after "order," strike all material through "order." on line 35, and insert "and the following statement: "You can be arrested even if the person or persons who obtained the order invite or allow you to violate the order's prohibitions. The respondent has the sole responsibility to avoid or refrain from violating the order's provisions. Only the court can change the order upon written application.""

On page 2, line 37, after "list by" strike "court staff" and insert "the court clerk"

On page 3, line 1, after "(2)" strike "Court staff shall be required to obtain" and insert "All court clerks shall obtain"

On page 3, beginning on line 14, after "brochures to" strike "the staff of all courts" and insert "all court clerks"

On page 3, after line 16, insert the following:

"(4) For purposes of this section, "court clerks" means court administrators in courts of limited jurisdiction and elected court clerks."

Signed by Representatives Appelwick, Chair; Ludwig, Vice Chair; Padden, Ranking Minority Member; Ballasiotes, Assistant Ranking Minority Member; Campbell; Chappell; Forner; Johanson; Long; Mastin; H. Myers; Riley; Schmidt; Scott; Tate; and Wineberry.

Excused: Representative Long.

Referred to Committee on Appropriations.

March 22, 1993

SB 5387 Prime Sponsor, Fraser: Including the water pollution control revolving fund in the funds that will be credited with earnings of investments of surplus funds. Reported by Committee on Environmental Affairs

MAJORITY recommendation: Do pass. Signed by Representatives Rust, Chair; Flemming, Vice Chair; Van Luven, Assistant Ranking Minority Member; Bray; Edmondson; Foreman; Hansen; Holm; J. Kohl; Linville; Roland; and Sheahan.

Excused: Representatives Horn, Ranking Minority Member and L. Johnson.

Passed to Committee on Rules for second reading.

March 19, 1993

ESB 5442 Prime Sponsor, Vognild: Clarifying authority of tow truck operators. Reported by Committee on Transportation

MAJORITY recommendation: Do pass. Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Mielke, Assistant Ranking Minority Member; Brumsickle; Cothern; Eide; Finkbeiner; Hansen; Horn; Johanson; J. Kohl; R. Meyers; Miller; H. Myers; Orr; Patterson; Quall; Shin; Wood; and Zellinsky.

Excused: Representatives Jones, Vice Chair, Schmidt, Ranking Minority Member, Brough, Forner, Fuhrman, Heavey and Sheldon.

Passed to Committee on Rules for second reading.

March 22, 1993

SSB 5802 Prime Sponsor, Ecology & Parks: Regarding state environmental policy act documents. Reported by Committee on Environmental Affairs.

MAJORITY Recommendation: Do pass. Signed by Representatives Rust, Chair; Flemming, Vice Chair; Van Luven, Assistant Ranking Minority Member; Bray; Edmondson; Foreman; Hansen; Holm; J. Kohl; Linville; Roland; and Sheahan.

Excused: Representatives Horn, Ranking Minority Member and L. Johnson.

Passed to Committee on Rules for second reading.

March 18, 1993

SSB 5937 Prime Sponsor, Quigley: Including certain indebtedness in the calculation of the seven percent debt limitation. Reported by Committee on Capital Budget.

MAJORITY Recommendation: Do pass with the following amendment:

On page 2, line 17, strike lines 17 through 20 and insert "(6) Indebtedness authorized or incurred before the effective date of this act pursuant to statute ((heretofore or hereafter enacted)) which requires that the state treasury be reimbursed, in the amount of the principal of and the interest on such indebtedness, from money other than general state revenues"

On page 2, line 26, after "Indebtedness" insert "authorized and"

On page 2, line 29, after "treasury" insert "except higher education operating fees"

Signed by Representatives Wang, Chair; Ogden, Vice Chair; Sehlin, Ranking Minority Member; Morton, Assistant Ranking Minority Member; Brough; R. Fisher; Jacobsen; Jones; Ludwig; Romero; Silver; Sommers; and Thomas.

Excused: Representatives Eide and Heavey.

Passed to Committee on Rules for second reading.

March 23, 1993

SJM 8001 Prime Sponsor, Sutherland: Requesting amending the Copyright Act to address current situations. Reported by Committee on Energy & Utilities

MAJORITY recommendation: Do pass with the following amendment:

On page 1, line 17, after "television was 'of" strike "the" and insert "a"

Signed by Representatives Grant, Chair; Finkbeiner, Vice Chair; Casada, Ranking Minority Member; Miller, Assistant Ranking Minority Member; Johanson; Kessler; Kremen; Long; and Ludwig.

Passed to Committee on Rules for second reading.

March 22, 1993

SJM 8021 Prime Sponsor, Williams: Requesting federal assistance with implementing the safe drinking water act. Reported by Committee on Environmental Affairs

MAJORITY recommendation: Do pass with the following amendment:

On page 2, line 21, strike "approximately double its budget and"

Signed by Representatives Rust, Chair; Flemming, Vice Chair; Van Luven, Assistant Ranking Minority Member; Bray; Edmondson; Foreman; Hansen; Holm; J. Kohl; Linville; Roland; and Sheahan.

Excused: Representatives Horn, Ranking Minority Member and L. Johnson.

Passed to Committee on Rules for second reading.

On motion of Representative Sheldon, the bills and memorials listed on today's committee reports under the fifth order of business were referred to the committees so designated.

The Speaker declared the House to be at ease.

The Speaker called the House to order.

JOINT SESSION

The Sergeant at Arms of the House announced the arrival of the Senate at the bar of the House.

The Speaker instructed the Sergeant at Arms of the House and Senate to escort the President of the Senate Joel Pritchard, President Pro Tempore Lorraine Wojahn, Vice President Pro Tempore Al Williams, Majority Leader Marc Gaspard, and Minority Leader George Sellar to seats on the Rostrum.

The Speaker presented the gavel to President of the Senate Joel Pritchard.

The Clerk of the Senate called the roll of the Senate and all members were present.

The Clerk of the House called the roll of the House and all members were present.

APPOINTMENT OF SPECIAL COMMITTEES

The President of the Senate appointed Representatives R. Fisher and Silver and Senators Hochstatter and Loveland as a special committee to advise his Excellency, Governor Mike Lowry, that the Joint Session had assembled and to escort him from his office to the House Chamber.

The President of the Senate appointed Representatives Morris, Ogden, Sheahan and Foreman and Senators Franklin, Moore, Prince and West as a special committee to escort the Supreme Court Justices from the State Reception Room, to the House Chambers.

The President of the Senate appointed Representatives H. Myers, Veloria, Wolfe, Chandler, Schoesler and Thomas and Senators Drew, Fraser, Hargrove, Bluechel, Erwin and Roach as a special committee to escort the State Elected Officials from the State Reception Room to seats within the House Chamber.

The President of the Senate introduced the Supreme Court Justices and the State Elected Officials.

The President of the Senate introduced Speaker Brian Ebersole.

REMARKS BY SPEAKER EBERSOLE

There are many points in the life of our state that mark the crossroads of our history. Today is one of those points. Today, the Governor will open both a legislative and a public dialogue about how we shape our future by balancing our budget. The proposals we are about to hear will set the course of our state for years to come. How we deal with our budget is not just a matter of making the numbers add up; it is a matter of making choices about what we value most, and where we want to go. And the more difficult the budget-and this one is extremely difficult-the more important the quality of leadership in the Governor's office.

At this crossroads in our history, we are truly blessed. We have a governor who is passionately optimistic, a governor who has immense faith in the goodness of our citizens, and a governor who will work all day and half the night to make his vision of the future come true. No matter how difficult the challenge, this Governor will rise to meet it. And so let us rise to meet him. Ladies and gentlemen, the 20th governor of the state of Washington, Mike Lowry.

GOVERNOR MIKE LOWRY'S BUDGET ADDRESS

Thank you, Mr. Speaker,

Mr. President, distinguished members of the Supreme Court, distinguished State Elected Officials, and members of the legislature, thank you for this opportunity.

I wish we met today under happier conditions for both state government and the state's economy. You've all read the bad news. In the next biennium, state government will face a shortfall of $1.8 billion, and the private sector isn't much better off. The national recession saved our state for the last, but not the least. Washington's unemployment rate is running at over 9 percent, which means that more than 150,000 of our neighbors can't find work. This is a terrible waste and a great challenge, but I am confident that we can meet and overcome these adversities.

Let me tell you why I'm optimistic about the future of this state. I'm optimistic because when you look beyond all the bleak headlines and statistics, you see the tremendous assets of this state. Assets we have only begun to tap.

First and foremost, there is the great beauty, vitality and variety of Washington's natural setting. In Washington, you can find virtually every kind of environment, from deserts to ocean beaches, from farmland to forests, from deepest gorges to the highest peaks. And most of it is still unspoiled.

Second, there is Washington's strategic location. We stand literally on the leading edge of the continent, of the Pacific Rim, of the global economy. We stand physically, intellectually, and economically on the frontier of the future.

Third, Washington enjoys the great investment made by previous generations-public investments in new technologies and modern factories. These investments have created an infrastructure of opportunity for everything that exists today and is possible tomorrow.

Fourth, in Washington we enjoy the freedom to think, to create, to experience different cultures and ideas, to apply our energies as we choose. Ours is still a very young state, barely a hundred years old. We are not gripped by the prejudices and intolerance, the rigid interest groups, the hostile classes, and the old elites and cliques that hobble other states and regions.

Fifth and most importantly, I'm optimistic about the future because of the quality of Washington's people-people like you. People who are good partners, good co-workers, good employees, good managers, good professionals, good citizens, good elected officials and a very good legislature.

I want to salute this legislature for the tremendous progress it is making on health care reform, education reform, civil service reform, consolidating and streamlining state government, law and justice reform, and developing a statewide approach to our infrastructure needs. Each of these high priority items is an important component of getting our fiscal house in order, and I thank you for your leadership. History will record that the politics of avoidance ended with this legislature.

We face a great challenge and a great opportunity with this budget. We face some fundamental choices-not just between cuts and adds, but between reform and stagnation, action and neglect, progress and decay. We can choose to balance this budget without any new general fund revenues, but the deepness of the cuts required to do that would devastate our states future and endanger lives of some of our citizens. Or we can choose a balanced combination of cuts and new revenues-a responsible budget that will move us to a bright future. That is the budget I have chosen.

Some argue that projected revenues may grow $900 million over the next two years, and that should be enough. That sounds very reasonable, except they fail to note that costs that are out of our immediate control will increase by twice as much:

* K-12 enrollments up 50,000 kids, costing an additional $799 million

* Health care up nearly $534 million

* Corrections up more than $200 million

* Debt service on capital budget up $159 million.

Obviously, these $2 billion in cost increases beyond our immediate control are more than double the projected $900 million revenue increases. In fact, now that the national recession has reached our state, the projected growth of state revenues for the coming biennium are less than one-third the 30-year average of state revenue growth. And so, we face rapidly escalating costs and significantly slower revenues.

This is the challenge that the Legislature and I inherited-and that we asked for the opportunity to meet. I am very confidant we have the fortitude to meet this challenge with great success. In preparing this budget, I committed to three fundamental principles:

* We would restructure for the future by consolidating agencies and programs, eliminating functions, reforming civil service, reducing management, improving service delivery, and bringing health care costs under control.

* We would invest in the future by protecting services for our children, reforming education, expanding work force training, increasing aid for low-income students, building local economic development capacity, and improving our stewardship for state lands.

* And we would save for the future by throwing away the tricks and gimmicks and building up our reserve to guard against future economic adversity.

Before we achieved a single reform, investment or savings, we faced a shortfall of $2 billion over the next biennium. We have eliminated that shortfall. Today I am presenting a balanced general fund budget totaling $16.3 billion for the next biennium. This budget is $634 million less that the one proposed by Governor Gardner in December.

We have cut programs and costs by $642 million. Many of those are tough cuts. We have identified $231 million in alternative sources to pay for vital services. We have intensified collections to cover another $103 million in service costs. We have eliminated the equivalent of 2,100 full-time, general-fund state jobs, including 500 managers. We have consolidated agencies such as Fisheries and Wildlife, and Community Development and the Department of Trade.

We have asked our hard-working and dedicated public employees to live for two years without a cost-of-living raise, which is really a net pay cut. We have reduced higher education budgets by $148 million. We have reduced K-12 administration and programs by $123 million. We have reduced general fund expenditures for social and health programs by $261 million. People will complain loudly and in some cases legitimately about these cuts to their legislators. If you have a better way, tell me. Others will say I have cut too little. If you have a better way, tell me. But the fact is, there are some cuts that cost too much. For while it is important that we cut government spending and streamline operations and make government more efficient, it also is important that we invest in the future of our state.

So, in this budget, we have placed high priority on protecting programs for children.

* We have added funding to feed hungry school kids.

* We paid for the first phase of education reform.

* We increased spending on children's mental health and prenatal care.

And while we call for tough management savings in higher education, we refuse to make the penny-wise and pound foolish mistakes of some other states that presently are dismantling their higher education systems.

We realize that the quality of education that's available to our work force is critical to our economic recovery, and we refuse to make the devastating higher education cuts that a "no new taxes" budget would cause. And because no qualified students should be stopped from achieving their education goals because of income limitations, we will double the number of students getting financial aid and significantly expand work study programs. And again, because of its importance to our economic vitality, we put new money into retraining our work force and into employing dislocated workers to help restore and maintain public lands.

Now, no responsible budget would be complete without a savings plan-as I'm sure the people of this state will agree. That's why I'm proposing that we increase the state's "rainy day" fund to $144 million, and also build in an additional cash reserve to raise the state's total reserves to $366 million, which is more than 2 percent of the general fund budget. I know that State Treasurer Dan Grimm is happy about that part of this proposal, and the financial markets will be, too. Unfortunately, however, we cannot set aside this emergency reserve, maintain essential services and pay for new investment without additional revenues.

After starting with a $1.8 billion shortfall, and making significant and tough cuts, tuition increases, and increased fees for special services-we were still short $848 million. So, I am proposing to close that gap by closing loopholes for those that are exempted from paying sales tax on services mostly used by the higher income.

I chose this alternative because it has the least effect on middle income and low income people and families in the state. In doing this, I rejected tax alternatives-such as raising the sales tax, which is unfair to consumers, or raising B&O taxes which is unfair to employers. In fact, I reduced B&O taxes and expanded sales tax deferrals to help spur new business and investment. By choosing to close loopholes, we are able to greatly reduce the tax effect on the general public. As a matter of fact, this revenue proposal would cost the average family of four only a little over $2 a month. In Seattle, that's the price of a latte'. For the rest of us, it's less than the price of a "Grand Slam" at Denny's.

In exchange, we will protect and enhance our most important resource, our children. We will be able to move forward with education reform, we will maintain our excellent higher education system, we will train and employ dislocated workers and teenagers, we will launch new strategies for economic development. This, I submit, is a grand slam for $2 a month.

I know that we will spend the coming weeks debating pennies on the dollar in budget cuts, new reforms, and the size and fairness of various tax rates. That is part of the job that the people elected us to do, but it is not the whole task entrusted to us. The people also expect us to look beyond politics. They ask us to be wise as well as smart, they ask us to be responsible as well as accountable.

After the gavel falls sine die on this session of the legislature, memory of who won and who lost this or that debate will quickly fade into oblivion. But if we fail to maintain and fund vital state services, the people will not forget. And if we fail to seize the unique opportunities for reform and investment which face us today, the generations to come will not forgive us. More than a budget hangs in the balance. The whole future of our state hangs in the balance. Let's make it a great future. Join me in this budget. Thank You.

The President of the Senate instructed the special committee to escort Governor Lowry to his chambers.

The President of the Senate instructed the special committee to escort the State Elected Officials from the House Chamber.

The President of the Senate instructed the special committee to escort the Supreme Court Justices from the House Chamber.

MOTION

On motion of Representative Peery, the Joint Session was dissolved.

The President of the Senate returned the gavel to the Speaker of the House of Representatives.

There being no objection, the House advanced to the eleventh order of business.

MOTION

On motion of Representative Peery, the House adjourned until 10:00 a.m., Friday March 26, 1993.

BRIAN EBERSOLE, Speaker

ALAN THOMPSON, Chief Clerk