Oregon Public Broadcasting

Washington Governor Chris Gregoire has signed into law a new state operating budget that spends $31 billion over the next two years.

The budget also leaves nearly three-quarters of a billion dollars in reserve in the likely event state revenues continue to decline. Olympia correspondent Austin Jenkins reports on Tuesday’s bill signing.

Washington’s new two-year budget closes an estimated $9 billion gap.

Lawmakers balanced the budget with almost equal doses of cuts and one-time patches.

Federal stimulus dollars were a big piece of the equation. Gregoire calls the budget responsible even though it cuts 40,000 Washingtonians off state-funded health insurance.

Chris Gregoire: “It was a very difficult undertaking by these legislators. They say misery loves company and all of us were miserable together when we made the very difficult choices for the people of the state of Washington.”

Gregoire line-item vetoed 52 sections of the 500-page bill. One of those vetoes restores a cut in funding for voter-approved performance audits of state and local government.

Minority Republicans in the legislature have consistently said the budget is a band-aid that will not solve Washington’s long-term fiscal woes.

On the web:

Washington State Operating Budget