Gov. Chris Gregoire called on lawmakers to return to Olympia on Monday for the first special session of the state Legislature in seven years, raising concern among business leaders.
Historically, overtime has not been kind to business, said AWB President Don Brunell. Lawmakers in search of compromise tend to pile on more spending, not cut back.
That would especially damaging now, with the economy still struggling to recover from a deep recession.
The majority Democrats in both chambers have already given up on major reform, instead settling on a general approach that raises raise taxes and makes more modest cut backs in an attempt to plug an estimated $2.8 billion state budget shortfall.
That means the main challenge will be for the House and Senate to reach agreement on the particulars of a tax plan.
One major sticking point: whether to boost the sales tax. The Senate's $890 million tax package includes a sales tax increase, while the House package -- which would generate $681 million -- does not.
It may not be easy.
Despite claims from party leaders that they are not far apart, an analysis by the Washington Research Council shows considerable differences in the way the House and Senate propose to plug the shortfall.
And there are signs that Democrats are turning on each other, writes Kate Riley, editorial columnist for the Seattle Times.
Business leaders should keep a close eye on the special session.
Gregoire wants lawmakers to finish their work within seven days, but they can take as much as 30 days under the state constitution.
And just about anything could come back for reconsideration.
Even before the end of the 60-day regular session, lawmakers in the House quietly slipped a scaled-down version of last year's union gag bill into the Senate budget.
Damaging tax proposals remain in play, as well, including:
- A proposed increase in the Model Toxics Control Act that would raise the price of gas to help pay for stormwater cleanup. Proponents were originally pushing to use these funds to cover state general fund obligations, too.
- The proposed elimination of a business and occupations tax deduction for dues and initiation fees that could hit the auto club AAA Washington particularly hard.
- A proposed tax on custom software that would hit the state's computer software industry.
When lawmakers return to Olympia on Monday, they will no doubt resume a discussion that's largely -- if not completely -- devoted to taxes.
Bottled water, candy, custom software, out-of-state companies and oil are among the targets.
But anything could happen.
Overtime is always unpredictable.
