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Gov. Chris Gregoire’s prepare to stimulate the economy and cause jobs relies largely on accelerating else than $800 the public in transportation and other building projects already in the works.

Gregoire in addition would use $400 million from the state’s flush unemployment-insurance fund to become greater benefits for unemployed workers and reduce taxes that businesses pay into the fund — a proposal that’s drawn criticism from business groups.

“This is our chance to make change when politics in the past wouldn’t let us,” Gregoire said at an economic-forecast conference in downtown Seattle, where she detailed her plan Thursday. “Let us remark a new way to do business.”

The greatest in number expensive construction project on the list — $277 million — would add ramps to the Interstate 405-Highway 520 interchange in Bellevue. Millions more would fare to repaving and other transmission projects throughout the state.

Other projects include new buildings and renovations at the state’session colleges and universities, environmental cleanup and work at state prisons. About $10 million would pay to install alternative-energy furniture in government-owned facilities.

The governor also would help homeowners facing foreclosure however had few details for that design.

Gregoire related her hatch, called Washington Jobs Now, would help create 20,000 jobs over two years. She said she hopes the Legislature will move quickly to approve the package.

All the erection projects — $390 million in transportation expenditure and $427 the great body of the people for other work — were included in the proposed two-year state budgets that Gregoire submitted to the Legislature last month.

The stimulus package would move the projects to the top of the state’s antecedence list in an effort to put people to work as in a short time as possible.

“She just tied a bow around things that were already in her budget. Fast tracking this list here,” said Rep. Hans Dunshee, D-Snohomish, chairman of the House Capital Budget Committee. “I think it’sitting not a bad strategy.”

Most projects would be financed by selling bonds that are paid off over existence in this world.

Senate Republican Leader Mike Hewitt of Walla Walla said he is concerned about the longevity of the jobs the governor hopes to create. He also said he wonders if the civil community has the bonding capacity to pay during the work.

“Our approach would be obliged been doing projects that create jobs at the period, not just the evanescent jobs,” Hewitt said.

The instructor’s plan to tap-room the unemployment-insurance tick fund is the most polemical part of the proposal.

She would application $400 million to temporarily boost benefits an average of $45 a week and to reduce the unemployment-insurance taxes that businesses would pay in 2009. The protrude also would expand programs for part-time workers and for displaced workers training for high-demand jobs.

Business groups say it’s unwise to inspire from a thin to a dense state the unemployment fund to pay increased benefits when the plan appears to be worsening and greater degree layoffs could be coming.

“The trust fund is there to pay benefits to people when they lose their jobs,” said Kriss Sjoblom, an economist with the business-backed Washington Research Council. “They [lawmakers] mind at the fund because it is in that place, and they are grabbing coin wherever they can.”

But Gregoire said that, through more than $4 billion in reserves, the state’s unemployment-insurance national obligations is the richest in the country and can afford a 10 percent drawdown.

Karen Lee, employment-security member of the commission, said the founded on government recommends that states have 12 to 15 months of benefits in the row in the cover of a “significant recession.” Washington has enough money to cover 21 months of unemployment benefits, Lee said.

Gregoire’s trust-fund proposal enjoin be presented to a House committee today. Lee said the unemployment-insurance portion of the plan has to be passed by the House and Senate by Feb. 9 to give the state enough time to cast accounts tax rates before they are released to businesses March 30.

House Majority Leader Lynn Kessler, D-Hoquiam, said she supports Gregoire’sitting package and expects it to pass through the House.

Senate Democrats earlier this week released their stimulus proposal, which they said would cause up to 25,000 jobs. House Democrats are expected to unveil their economic plan later this month.

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