Gregoire Increases Budget, Signs Tax Rebate - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Gregoire Increases Budget, Signs Tax Rebate

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OLYMPIA, Wash. -- Governor Christine Gregoire has agreed to increase the state budget by almost $300 million.

Washington's two-year spending budget currently stands at $33.4 billion. The new plans also stash away $850 million for future deficits. The state is already facing a potential $2 billion deficit.

Gregoire and majority Democrats call the current budget "disciplined and frugal", while Republicans says it's overspending and will result in tax increases next year.

On Tuesday, Gregoire signed the "Working Familes Tax Rebate" into law. The rebates would be available to state residents who already qualify for the federal "earned income tax credit".

Legislators estimate roughly $110 million would be paid out in rebates to low-wage workers.