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Category: The economy

Revenue update: Amnesty helped, but recovery lags

Revenue update: Amnesty helped, but recovery lags

Washington’s forecast has ballooned 13.3 percent, by nearly $158 million in the past two months,  almost entirely because of a now-expired amnesty program for repaying past-due taxes without penalty. But the state Revenue Forecast Council, in a sober revenue update today, said that’s a one-time pickup and that the state economic recovery lags and that without the amnesty program, the bottom line would actually be down nearly $27 million, or 2.2 percent below the March forecast.  That’s not a lot,…

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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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Low-key startup for second session

Low-key startup for second session

Washington’s special legislative session got a quick and quiet liftoff Tuesday morning, with none of the drama, speeches and press conferences that usually mark the opening day of a session. In the House, gavels fell at 9 a.m. with less than a dozen members on the floor. They soon recessed until Friday, in keeping with their plan to keep doing “rolling recesses” of three days at a time until agreements are negotiated on the budget and other key pieces of …

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WA lawmakers heading into special session Tuesday

WA lawmakers heading into special session Tuesday

Gov. Chris Gregoire has called Washington lawmakers back into special session, starting next Tuesday morning, urging them to show bipartisan cooperation as they write a state budget that bridges a $5 billion spending gap. The regular 15-week session wound to a close Friday and lawmakers still have at least two more weeks of work to do on the operating and construction budgets and related bills, House and Senate leaders said at a joint news conference with the governor.  The Senate will…

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Wee bit o’ good news: WA tax collections up $5 million

Wee bit o’ good news: WA tax collections up $5 million

Washington’s wobbly economy has generated an unexpected $5.1 million in tax collections over the past month, exceeding the projections of last month’s revenue forecast. That’s not much in the context of a $32 billion two-year state budget and there are still plenty of warning signs on the horizon as the state weathers both national and international concerns, says a new report out today from the Washington Economic and Revenue Forecast Council. Total revenue is up 10.2 percent, year-over-year.  The increase is…

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Red ink: House offers $32 billion cut-laden budget

Red ink: House offers $32 billion cut-laden budget

Majority House Democrats have unveiled a $32.4 billion state budget that incorporates $3.2 billion in assorted cuts, a 3 percent salary reduction and higher medical contributions for public employees, pension reforms, and more. The no-new-taxes budget for the next two years was the first draft to surface in the Legislature since a new revenue forecast knocked another $800 million hole in the budget last month, bringing the total gap to over $5 billion.  Tax collections have lagged as the state and…

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McNeil Island Prison closes today

McNeil Island Prison closes today

Photograph courtesy of Benjamin Helle, Washington State Archives. Yesterday, just a day before the prison closed, staffers from State Archives and other historical societies took a tour of the facility and snapped photographs of the historic site.  After 135 years, the McNeil Island Prison shut down operations due to state budget cuts.  Stories told from those who worked or served time inside the prison are found in today’s story of the Olympian.

More red ink: WA revenue forecast drops $778m

More red ink: WA revenue forecast drops $778m

Washington’s glacial economic recovery is still bleeding red ink.  The state Revenue Forecast Council has just cut more than $778 million from the estimate of expected tax revenue, driving the state’s projected deficit to about $5.1 billion. That compares with the current $30 billion two-year state budget.  Lawmakers have been cutting spending for the past several years and recently adopted cuts for the current fiscal year.  Budget Director Marty Brown said there is still a gap of about $200 million…

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Gregoire, leaders gird for budget-cutting

Gregoire, leaders gird for budget-cutting

Bleak times: Gov. Chris Gregoire and a bipartisan panel of legislative leaders say the 105-day session that convenes next Monday will inevitably feature massive state budget spending cuts as Olympia deals with an unprecedented $4.6 billion budget gap. The Democratic governor, who recently unveiled a no-new-taxes budget, said the voters sent a clear and unmistakable signal with their tightfisted votes in November that they want an all-cuts budget.  That tracked with what Republican leaders of the House and Senate told…

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Gregoire proposes deep budget cuts

Gregoire proposes deep budget cuts

Washington Gov. Chris Gregoire, responding to a massive budget gap of $4.6 billion and public sentiment against tax hikes, is proposing a $32 billion two-year state budget that slashes virtually every segment of state spending. The governor recommended eliminating some of her favorite programs, including health coverage for the working poor, tax support of state parks, Disability Lifeline grants, Children’s Health Program, class-size reduction in K-4, and more.  She proposed shuttering the history museums in Tacoma and Spokane and freezing…

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