By REP. PHYLLIS GUTIERREZ KENNEY

Less than two weeks before state lawmakers overwhelmingly passed a bipartisan supplemental budget to address serious revenue shortfalls caused by Initiative 695, media pundits were lambasting legislators for their "failure of leadership."

Days after the state Legislature approved the $20.8 billion spending plan on April 27, boosting funding to build more schools and reduce class sizes, reporters were saying "lawmakers did even more than expected."

Most lawmakers knew we'd get the job done, just like practical investors who aren't panicked by daily gyrations in financial markets and who stay focused on long-term returns.

Like those investors, we kept our sights on our long-term goals - fully funding education and replacing some of the lost $1.1 billion in revenues from I-695 to help local governments, public health and safety programs, and vital transportation programs.

We weren't sidetracked by the impasse in budget talks. And guess what? We did our job, and did in a bipartisan way, even with a historic 49-49 tie in the House of Representatives between Republicans and Democrats.

The 2000 session clearly was good for the bottom line of businesses and for thousands of working people in Washington.

First and foremost, the Legislature responsibly addressed the enormous I-695 revenue loss caused by the new $30 car tabs. This shortfall will remain a serious state funding concern for years to come, with annual revenue losses hitting $750 million.

That's less money for transportation: roads, congestion relief, freight mobility, ferries, and rail. With one-third of last year's two-year, $4 billion transportation spending plan erased by I-695, businesses and commuters will be impacted.

As a former small-business owner, I know the state's trade-dependent economy needs a transportation system that efficiently moves goods and people. For now, our current transportation budget will keep freight moving, preserve matching funds on key road projects, and support busses, ferries, and mass transit. That's good for the short term. But long-term funding issues will require hard work and hard decisions because continued transportation funding is among the most important investments our government can make for the state's economic health and for the businesses who have made Washington a better place to live.

The 2000 session also should be remembered for the bipartisan measures we passed that will make Washington a better place to do business. The Legislature passed measures that will save employers nearly $200 million in unemployment insurance taxes this biennium and help bring potential Internet businesses to rural Washington so it can start sharing in our booming new economy. Those are solid achievements.

In fact, the first bill signed into law this year was one of the most important tax-savings laws ever passed in Washington. Lawmakers, working together with business and labor, held off an unwanted and unnecessary hike in unemployment insurance rates. Under this new law, businesses will save $580 million through 2005.

In some cases, the state is cutting taxes for classes of employers. This law also helps businesses because it provides additional UI assistance for laid-off workers so they can retrain for jobs employers are desperate to fill, in fields from construction to high-tech.

This is smart government and smart legislation, which is what voters demanded when they passed I-695. The 2000 Legislature delivered.

Lastly, to reduce government mandates on businesses and corporations, we passed legislation this year to reduce paperwork and mailing costs by allowing (not requiring) shareholders to vote electronically. Businesses and non-profits can now use electronic voting under this new law. I am very proud of small steps that help businesses large and small cut through a sea of red tape.

If we consider that the Legislature was building on a strong biennial budget last year that did not raise taxes and held government spending to its lowest rate in more than 20 years, we can call the 2000 session a victory for Washington's businesses. As a businesswoman-turned-lawmaker, I know we can do more. But I also know when we can share some good news about good returns. This session clearly was a win-win for better government and for businesses in Washington state.

Rep. Phyllis Kenney of the 46th Legislative District in Seattle represents North Seattle.