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Tag: budget crisis

Suddenly, some rosy economic news for WA

Suddenly, some rosy economic news for WA

Light at the end of the tunnel: Washington economists are projecting a $96 million increase in the state’s revenue. Coupled with news that state government will save $330 million in lower caseload costs and that House Republicans will support closing a banking tax loophole, it could mean lawmakers can avoid calling a special election to ask voters to boost the state sales tax a half-cent for the next three years. It also makes it more likely that the Legislature will…

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Lawmakers kick off election-year session

Lawmakers kick off election-year session

Washington lawmakers are back at work, confronting a $1.5 billion budget gap, the possibility of a tax referendum, and a number of touchy social issues, including gay marriage, marijuana, and abortion — all within the context of 2012 being the first election since redistricting. The session got off to a very quiet start at noon Monday, with few speeches and few protesters outside.  That was in marked contrast to the noisy reception lawmakers got when Occupy Olympia and thousands of…

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Special session adjourns after trimming budget $480m

Special session adjourns after trimming budget $480m

Washington lawmakers have adjourned their unprecedented 17-day November-December emergency session designed to start trimming the state budget to size. But they won’t be gone for long.  The regular 2012 session, supposedly limited to 60 days, is just around the corner — Jan. 9. The Democratic-controlled Legislature didn’t do the complete $2 billion budget-and-tax deal that Democratic Gov. Chris Gregoire had strongly recommended when she called the session.  They gave strong bipartisan agreement to a plan, House Bill 2058, that begins…

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Governor calls emergency budget session for Nov. 28

Governor calls emergency budget session for Nov. 28

Washington Gov. Chris Gregoire has called the Legislature into emergency special session, beginning the Monday after Thanksgiving, to deal with a gaping $2 billion hole in the two-year state operating budget. The decision, which will trigger a session that can last for up to 30 days, was expected, following a dire new revenue projection that knocked another $1.4 billion hole in the budget.   If the Legislature doesn’t raid the “rainy day” fund and provide additional reserves, the problem becomes about…

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WA revenue forecast plunges another $1.4 billion

WA revenue forecast plunges another $1.4 billion

Economic recovery seems “like a mirage in the desert” and Washington’s economic forecast has been chopped by another $1.4 billion. Will there be a special session of the Legislature? The grim news came at a meeting at the Capitol of the bipartisan Economic and Revenue Forecast Council.  House budget chief Ross Hunter said lawmakers now face the the prospect of slicing perhaps $2 billion out of a $30 billion budget that has been repeatedly “scrubbed” during the Great Recession. State…

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‘Sharp slowdown’ in WA as recovery struggles

‘Sharp slowdown’ in WA as recovery struggles

A new state report says tax collections were down $70 million below forecast levels in May, due to a “sharp slowdown” in the economy.  Still, even accounting for that, total collections since the March forecast are up $93 million, thanks to one-time collections under the tax “amnesty” program. Arun Raha, the state’ s chief economist and director of the Economic and Revenue Forecast Council, said in an update that the national economy has “entered another soft patch in a recovery…

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WA lawmakers button down hard-times session

WA lawmakers button down hard-times session

Washington lawmakers are heading back to their home districts after completing a brutal recession-era 135-day session.  Budget cutbacks, including salaries of state employees and teachers and budgets of virtually every area of government, were the rule of the day as lawmakers grappled with a budget gap of billions. Cuts and freezes totaling $4.6 billion will affect K-12, higher education, “safety  net” programs, and a variety of state services, from parks to prisons.  The $32 billion two-year budget takes effect July…

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State budget deal: cuts and more cuts

State budget deal: cuts and more cuts

As Washington struggles to emerge from the deepest recession in 80 years, lawmakers have reached an 11th-hour budget deal for the next two years, cutting expenses in virtually every sector of state government. The $32.2 billion plan, hammered out behind closed doors by negotiators from all four caucuses, relies on nearly $4.6 billion in spending cuts, including $1.2 billion saved by not funding two voter-approved education initiatives.  Other monster cuts are higher education, $535 million, offset by an expected $376…

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WA prez primary cancelled; Top 2 primary still on

WA prez primary cancelled; Top 2 primary still on

Washington state has suspended its 2012 presidential primary in order to save taxpayers over $10 million.  Secretary of State Sam Reed emphasizes that the state’s regular Top 2 Primary in August is “absolutely unaffected.” Legislation requested by Secretary Reed and Gov. Chris Gregoire was signed into law by the governor on Thursday. Both continue to be big fans of the presidential primary as the preferred method of engaging the electorate in picking presidential favorites.  At the bill-signing ceremony, both the…

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Tax-amnesty windfall could speed budget deal

Tax-amnesty windfall could speed budget deal

Glum Washington lawmakers, last seen slogging through House-Senate budget talks, have just gotten a jolt of good news — a  $182 million windfall.  Governor Gregoire and the budget negotiators say that could go a long ways toward finding a budget solution and wrapping up the special session on time. The surprise was in the form of a gusher of unexpected tax receipts generated through a three-month “tax amnesty” that Gregoire and the Legislature authorized. Companies have been allowed to pay…

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