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Re: Chop, slash, trim: Now construction budget gets knife

Re: Chop, slash, trim: Now construction budget gets knife

Washington lawmakers plan to spend $3 billion on an assortment of “shovel-ready” construction projects across the state — but because of our deep recession, that’s a far cry from the normal spending.  As a sideshow to the main event of writing a state budget that closes a monster $9 billion gap, Democrats in both chambers have rolled out competing construction budgets. Senator Karen Fraser, chief architect of the Senate’s plan, called it “the happy budget,” even with the pared-back bottom line, since it’s in stark contrast with…

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Chop, slash, trim: The sequel

Chop, slash, trim: The sequel

And now, the other shoe drops.  Just a day after Senate Democrats unveiled their $31.3 billion two-year state budget plan, their brethren in the House D caucus have rolled out a competing plan. They aren’t carbon copies.  Two houses have the same big-picture goals — a balanced budget that closes a ginormous $9 billion spending chasm, mostly through cuts, freezes, fund graps and Obama Bucks, and squirrels away $850 million as a hedge against further deterioriation of our whacked-out economy.  But whereas the Senate spreads the pain…

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Chop, slash, trim: The budget knives are out …

Chop, slash, trim: The budget knives are out …

The Legislature’s Democratic majorities are finally going public with their proposed budgets that close a $9 billion gap, a grim assortment of spending cuts in K-12, higher education, salaries, health and welfare, prisons, parks and agency overhead.  An estimated 7,000 state employees will lose their jobs, the Dems said. The new week was barely underway when Senate Democrats rolled out a plan that leaders called personally painful, yet “honest and responsible.” House Democrats quickly reply with their own version of an all-cuts budget on Tuesday….

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More red ink: Budget gap nears $9b

More red ink: Budget gap nears $9b

The hits just keep on coming.  Washington’s bipartisan Revenue Forecast Council says the nose-diving economy will produce about $2.8 billion less revenue than predicted just a few short months ago.  Combined with the downturn that had been forecast in November, the gap now is in the neighborhood of $9 billion, the largest projected deficit the state has ever seen. The main state budget is $33 billion. The new forecast is $553 milion lower than an interim report released last month, leading…

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Sort of stabilizing … at awful

Sort of stabilizing … at awful

Fresh news out of the state Revenue Forecast Council is that tax receipts for the past month are down $40 million from levels expected in the November forecast that Governor Gregoire used as the basis for her budget proposals.  Believe it or not, that’s sort of good news, since it’s no worse than forecasters predicted last month. It’s true that since the November forecast, our shortfall has grown by nearly $240 million, but since the council produced an informal update…

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If you cry easily …

If you cry easily …

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…

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