Don’t read the new state economic forecast.  The report is from the Eight Billion Dollar man, state economist Arun Raha, to the panel of legislators and Gregoire revenue and budget directors who have to discern just how deep Washington’s budget gap will be.  (Early guesstimate by Raha is ballpark $8b.)

The new economic forecast, the prelude to a full revenue forecast in a few weeks, paints a bleak picture of a state economy on the skids.  Examples:  Building permits have fallen to the lowest level in nearly 30 years; employment has sunk 4.2 percent since September; construction is “bleaker,” even with all the federal stimulus money in the pipeline; and even the high-performing aerospace and software sectors are shedding tons of jobs.

Full read is here http://www.erfc.wa.gov/pubs/p0209.pdf