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Category: The economy

More red ink in WA: Revenue forecast dips another $122m

More red ink in WA: Revenue forecast dips another $122m

The state Revenue Forecast Council had some more bad news for Washington Gov. Chris Gregoire and the Legislature: The latest forecast is down another $122 million. The governor already has called an emergency session of the Legislature, beginning Nov. 28, to begin the difficult task of dealing with a budget shortfall now in the $2 billion range, including a deficit now projected at $1.4 billion plus sufficient reserves to tap if the spiral continues. Gregoire’s budget director, Marty Brown, said:…

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Gregoire proposes massive cuts for November session

Gregoire proposes massive cuts for November session

Washington Gov. Chris Gregoire, responding to the state’s continuing economic woes and a huge state budget deficit, is proposing a laundry list of deep spending cuts across all areas of state government. At a televised news conference at the Capitol, she laid out ideas totaling over $3.8 billion and endorsed nearly $1.7 billion of those for the budget rewrite she’ll release in November. The governor officially issued a call for an unusual November-December emergency session of the Legislature to adopt…

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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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Chief economist sees bleak news on horizon

Chief economist sees bleak news on horizon

Washington’s chief economist, Arun Raha, had hoped we’d be pulling out of our economic doldrums by now, but he says tax collections are sliding backward and he has a “sinking feeling of pessimism” about a possible new recession. In a grim economic and revenue update released Thursday, Raha said the national outlook has “weakened significantly” in the weeks since his June forecast.  He said that forecast assumed improvement would begin in July and then accelerate. But in Washington state, taxes…

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More budgetary gloom: Revenue forecast drops again

More budgetary gloom: Revenue forecast drops again

Less than 24 hours after Gov. Chris Gregoire signed a budget that fixed a $5 billion spending gap by cutting salaries and the budgets of nearly every state agency, a new revenue update brought more bad news. A new projection of a $183 million downturn in the next two years, combined with the Legislature’s reliance on one-time fixes like a tax-amnesty windfall and fund grabs, leaves the state roughly $572 million lower than previously expected, state budget Director Marty Brown…

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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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