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Tag: Economic and Revenue Forecast Council

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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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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