BY PEPPER FISHER

Olympia – A divided Washington state Senate on Saturday approved a hike in the state’s gas tax and a two-year budget that hinges on billions of dollars from new taxes on the state’s wealthiest residents and largest companies.

The Senate, on a 31-18 vote, endorsed raising the gas tax 6 cents per gallon on July 1 and increasing it 2% annually to account for inflation starting the following year.

The new and higher taxes and fees will generate around $500 million a year for transportation, ensuring the state can complete projects underway and do others that have been long promised to residents.

Also Saturday, the Senate passed the Democrats’ two-year $78.5 billion operating budget on a 28-21 vote. One of two Democrat Senators to join Republicans in voting against the budget was Mike Chapman of Port Angeles.

We reached out to Senator Chapman for a statement on why he opposed the budget, and he responded with a text message, saying there were 3 reasons he voted against it.

Number 1: Chapman said, “The budget uses almost all the rainy day reserves over the objections of State Treasurer Mike Pelliciotti, who is worried this move will lower the State’s AAA bond rating.”

2: “The budget is based on tax revenues that have never been adopted or collected in our state’s history.”

3:”The budget relies on tax increases that would impact small businesses throughout our state and district like local trucking companies and local pharmacies like Jim’s Pharmacy in Port Angeles and Chinook Pharmacy in Forks.”

Negotiations between the House and Senate will begin soon, with a final budget needing to pass by April 27. The governor’s signature is required for it to become law.