OLYMPIA -- House Democrats unveiled their latest budget proposal, a $38.4 million plan with lower spending and fewer taxes than a bill they passed earlier this year. It's an effort to move toward the center in the current budget standoff.

Described by House Majority Leader Pat Sullivan as "a substantial compromise", it would require a capital gains tax on upper income investors, but  no increase in the business and occupation tax.

The chief budget negotiator for Senate Republicans said it comes down on spending but "they're still depending on taxes. We think taxes are unnecessary."

House Democrats counter that the Senate's $37.9 billion plan relies on accounting tricks that make it unsustainable and a gamble on sending one major change to voters in November. If voters say no, that's a $2 billion hole they'll have to fix late this year or early next.

The House plan has more for teachers' salaries and health care benefits. It does not cut tuition at the state's colleges and universities by 25 percent as Republicans propose, but it does freeze tuition and spend more on student aid.

In a press conference this afternoon, House budget chairman Ross Hunter laid out a schedule in which they could reach an agreement by June 12, although Sullivan called that scenario "very aggressive." 

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