State lawmakers are nearing the home stretch of their 105-day session in Olympia. A looming budget crisis has dominated this year’s discussions and many money-related issues have yet to be resolved. But in the meantime, legislators have made progress on a variety of subjects. This is our annual update of where legislation stands just past the session’s midpoint.

To learn more about each bill, go to leg.wa.gov/billinfo. Type the four-digit bill number into the box and when the next screen comes up, click on Bill Report. That is a summary of what the bill would do, who testified in favor of and against the bill, and what their arguments were.

TAX & SPEND

Budget and taxes: The state now faces an estimated $8.31 billion deficit over the next 28 months. Gov. Chris Gregoire has proposed a no-new-taxes budget. Senate Democrats say they will unveil their budget proposal sometime after Thursday’s revenue forecast. The state is getting about $3 billion in help from Uncle Sam, but the Legislature will have to make deeper cuts than the governor did in her proposal. Lawmakers are likely to ask voters in June, August or November to raise taxes, and polling indicates voters might go for temporary taxes, especially if they are on liquor, cigarettes, candy, gum and pop.

Capital budget: Pots of money ordinarily earmarked for construction projects might be raided to help the state out of its $8.31 billion shortfall on the operating side of the budget, perhaps $300 million to $800 million. Some, but not all, of the projects that are losing money would be replenished by borrowed funds. Part of budget discussion.

State hiring freeze: The governor signed HB 1694, which puts a partial freeze (prison workers and some others are exempt) on state hiring, cuts $300 million in spending for 2007-09, uses federal funds instead of state money to pay for $340 million of other programs and requires special permission to buy things that cost more than $1,000. If those cuts are continued through 2009-11, they shave another $1 billion off the state’s $8.31 billion budget shortfall.

Liquor stores: The governor wants to open 10 more stores to bring in $21 million more revenue for the state. Part of budget discussions.

King County car tax: The County Council wants authority to impose a 1 percent motor vehicle excise tax countywide to raise more money for transit service. Never got off the ground.

Porn tax: HB 2103 would have let the state impose an 18.5 percent sales tax on visual pornography. Died without getting a public hearing in the House Finance Committee.

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