Washington’s expected revenues have plummeted more than $1.4 billion.

Governor Gregoire will order across-the-board emergency cuts in state government spending, reportedly in the 6 percent range.  The state now has a projected deficit of about $520 million. Lawmakers and the governor already were girding for a $3 billion shortfall as they write the new two-year state budget this winter.

The stunning economic news was presented by the state’s chief economist, Arun Raha, to the bipartisan legislative-administration panel called the Economic and Revenue Forecast Council.  During the remaining 15 months of this budget period, the council expects the revenue to be $770 million below what was predicted just a few months ago.  And for the 2011-13 biennium that begins next July, Raha expects $669 million less.

Raha said actual tax collections are $192 million below the June forecast and that the sharp slowdown in the national and state recovery will tamp down future revenue as well.  He said:

“Job growth remains anemic; housing is looking for a new bottom; and, despite some easing in credit conditions, small businesses continue to face a challenging credit environment. There is considerable drag in the economy, little indication of any impending acceleration, and increased uncertainty.”

Raha said he has cut his 2011 employment growth forecast in half, from 2.7 percent to 1.3 percent and isn’t expecting employment to get back to pre-recession levels until 2013.  Housing starts and home sales have collapsed, he said. Two bright spots: aerospace and software.  Also, Washington’s personal income is now growing moderately, he said.

The governor, now leading a trade mission to China, left behind a fill-in-the-blank executive order for spending cuts, expecting today’s bad news. The AP reported that she’s expected to order roughly 6.3 percent across-the-board cuts, effective Oct. 1.