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OLYMPIA — Gov. Chris Gregoire upon Wednesday proposed tapping the state’sitting $4 billion unemployment rely on fund to give a temporary tax cut for businesses, as well as a temporary boost in benefits to laid-off workers.

The governor mentioned the proposition during her inaugural art after being sworn in as governor for her second term. Details be pleased be released today without ceasing that idea and others in a jobs package that Gregoire says could create 20,000 jobs over two years.

The proposal calls for taking $400 million from the deposit fund and using half the money to beef up benefits for idle workers. The other half would aid businesses by reducing the substance of money they hire into the fund.

The executive told lawmakers that there’sitting a financial storm over Washington state, “and it’s raining buckets of hardship for families and businesses.”

The state’session job, she uttered, “is to help families and businesses survive at a time when they are forced to juggle bills and cut back spending.”

The Association of Washington Business (AWB), however, was quick to oppose the idea.

“Our state is exceedingly fortunate right now to have this flush unemployment trust fund,” said Don Brunell, president of the AWB. “Just since the fund is full, we can’t keep looking at nibbling away at it. We slip on’t want to meet with it get to the trifling concern where in that place is not only a lot greater amount of people doing nothing but that the employer has to pay more for unemployment taxes.”

He said the AWB opposes Gregoire’s tender because if lawmakers keep pulling money revealed of the fund, businesses might have to pay more taxes down the road to distend the account back up.

Under the proposal, workers would receive a $45-a-week boost in benefits on average. The average person last year received a $350 unemployment check harvested land week. The largest check someone could permit currently is $541 a week. Workers must earn $4,700 or more per month to equip for the maximum amount.

The fund can support to provide relief to workers and business, according to Gregoire, adding that the state “has the healthiest unemployment trust fund in the fatherland.”

Nearly three dozen states are scrambling during treaty money to atone for their depleted, or nearly empty, unemployment-insurance systems, before-mentioned Sheryl Hutchison, spokeswoman for the Washington employment-security department.

Hutchinson reported Washington has the nation’session largest unemployment-benefits money and could safely be drawn down. She said the federal government recommends that states only have 12 months of benefits stored in the case of a “significant recession.” Washington has enough to pay for 20 months of unemployment assistance.

“It’s not an invulnerable fund, (but) we do believe we can draw it down a bit without damaging our ability to pay benefits,” Hutchinson said, adding that her intervention had been in operation by Gregoire’s office upon the stimulus plan.

Gregoire isn’t the only lawmaker eyeing the unemployment confide in fund. On Tuesday, Senate Democrats revealed their proposed economic-stimulus package, which would tap the fund to pay for the retraining of unemployed or underemployed workers.

In her speech to lawmakers, Gregoire also declared she would provide details later without ceasing a “proposal to hold families in their homes. … I’m asking you to approve legislation to help struggling homeowners work in a puzzle ways to avoid foreclosure.”

In addition to those proposals, Gregoire talked of reforming state government.

“State government has evolved — layer upon layer — … however too much of what served the people well in 1940 or 1960 or 1990 does not serve the people well in the 21st century,” she said. “Let’session remove up to the challenge by reason of the population who sent us here.”

For example, she said, “almost 40 percent of license tabs are renewed online, economical hassles and gas. We be possible to close 26 licensing offices across the declare as long as extending hours at the 10 most popular locations.”

Democrats approved of her words.

“You know she’s offered specific ideas and she’s offered the Legislature a challenge to … serve our neighbors one at a time and do whatever we can, because I just don’t think I’ve ever seen anything considerably approve this,” said House Majority Leader Lynn Kessler, D-Hoquiam.

However, Senate Republican Leader Mike Hewitt, R-Walla Walla, criticized Gregoire for not focusing on ways to keep trifling businesses afloat during the economic crisis.

Sen. Joe Zarelli, R-Ridgefield, Clark County, said he disagreed with the scheme to draw riches from the unemployment trust fund to pay in spite of relief programs.

“A lot of the sort of we’re trying to do is spend money,” Zarelli said. “Anytime we take one-time money is pushing forward and growing the inevitable.”

Andrew Garber: 360-236-8268 or agarber@seattletimes.

Jennifer Sullivan: 360-236-8267 or jensullivan@seattletimes.com

Seattle Times reporter Chantal Anderson contributed to this story.