OLYMPIA, Wash. (AP) - Washington voters have approved a constitutional amendment to create a nest egg for lawmakers to tap in case of emergency or a downturn in the economy, but an effort to make passing school levies easier was trailing.

With about 42 percent of the vote counted, the "rainy day" fund measure had garnered about a 68 percent yes vote. Meanwhile, the simple majority school measure was failing with 43 percent of that vote counted, with about 52 percent of voters opposed and 48 percent supporting it.

The "rainy day" fund would build up to $1 billion or more during good times. During a recession or in the case of an earthquake, terrorist attack or other disaster, the money could be tapped by simple-majority vote in Olympia. Lawmakers also could access it with 60 percent supermajorities.

The measure would automatically set aside 1 percent of state government revenue each year, roughly $150 million.

Once it topped 10 percent of revenue, the excess would be available by simple majority vote for school and college construction projects.

The fund would start with about $430 million, including last year's surplus and a $135 million deposit by the 2007 Legislature.

The school amendment was aimed at eliminating the 60 percent supermajority requirement for approving special levies for local school districts. The rule is a decades-old limitation on voters' power to tax property owners.

The measure was failing in all but five counties but supporters refused to concede defeat.

"The fact it's taken all these years is an indicator of what a battle this has been," Washington Education Association President Mary Lindquist said Tuesday night. "We absolutely feel we can pull ahead. There's no doubt in my mind."

Supporters said the measure was needed to remove unfair hurdles to districts at risk of losing programs, but opponents said it would only raise property taxes without helping education.

During the past eight years, more than 100 school districts received majority approval of their levies, but not the required supermajority.

Lindquist said districts need an easier way to get their levies approved so they can "maintain textbooks and supplies and provide teacher training.

"That's all good for kids," she said.

Schools are often able to rework the levies and get a passing vote on subsequent tries, but supporters of the measure said that costs money, and disrupts districts' programs and their ability to retain teachers.

The measure also was written to eliminate the constitution's requirement that school levy elections draw 40 percent voter turnout.

Sen. Janea Holmquist, R-Moses Lake, said that unlike the other proposed constitutional amendments, the simple majority measure is the "only one that directly reaches into the wallets of Washington citizens.

"We love our school districts, we love our teachers, we love our kids," Holmquist said, "but this isn't about them. It's about money.

"This is going to make it easier to raise your property taxes. It's not going to improve education."

Voters also approved an amendment to remove a barrier to private companies setting up businesses behind prison bars and using inmate labor. The state Supreme Court ruled in 2004 that the constitution does not currently permit use of inmate labor.

The amendment said companies could set up in prison and provide paid training and jobs to inmates, as long as the activity doesn't amount to unfair competition with other Washington businesses.

That amendment was passing with more than 60 percent of the vote.

Voters were also deciding whether to allow the state Investment Board to invest four college permanent funds in the stock market, rather than just government securities and other low-yield investments. The board already aggressively manages pension funds and a 1966 constitutional amendment allowed stock portfolios for K-12 school funds and other large state funds.

That amendment was passing with about 53 percent approval.