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Tag: chief economist Arun Raha

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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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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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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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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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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WA revenue projections plunge $1.2 billion

WA revenue projections plunge $1.2 billion

More dire news for the state Legislature and Governor Gregoire:  The multibillion-dollar budget hole has gotten about $1.2 billion worse.  Washington’s projected deficit is now calculated at well over $5 billion. The state’s anemic economy and the huge budget gap will dominate the upcoming legislative session, and Sen. Joe Zarelli and other lawmakers are urging that an emergency session be held next month to get a head start on more cuts.  The governor already has ordered across-the-board cuts of over…

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Revenue update: Economy limps, tax collections lag

Revenue update: Economy limps, tax collections lag

A new state economic and revenue update says the national economic recovery “appears to be stalling” and that state tax collections are lagging below expected levels. The report from chief economist Arun Raha says collections were down more than $40 million below the June forecast, bringing the total backslide for the past two months to $124.5 million. The news comes shortly after President Obama signed a $26 billion bailout for the states, including $338 million in expected federal aid for…

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`Anemic’ recovery: Tax collections off $68m

`Anemic’ recovery: Tax collections off $68m

The hits keep on coming … A new report from the Washington Economic and Revenue Forecast Council says the U.S. economy is anemic, with the ever-present possibility that the recovery will stall out. Job growth is wimpy, the housing market has collapsed, consumers are hesitant to spend, and Europe’s debt and austerity woes are troubling. Against that backdrop, in recent weeks the state economy also has stumbled, writes chief economist Arun Raha. He does note some upsides: exports to Asia,…

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WA economy slowly recovering

WA economy slowly recovering

It’s a slow, hard uphill climb, but Washington’s battered economy is slowly recovering. A new report out from the state Economic and Revenue Forecast Council on Thursday, a preview of the June forecast, paints a somber, yet sort-of-optimistic, picture of recovery.  The economy has grown in each of the last three quarters, consumer sales have been stronger than forecast, and jobs are being created again, writes chief economist Arun Raha.  He adds: “Consumers appear to be willing to spend in…

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