State’s revenue estimate better than expected

OLYMPIA — The state`s latest revenue estimate came in Wednesday $40 million better than expected for the next two years.

It`s a forecast that the governor and legislators have been waiting for before they draft their respective budgets during the final month of the legislative session.

The revenue projection was welcome news for lawmakers who had expected the number to be negative, not positive.  But $40 million is still a drop in the bucket when the overall two-year budget will top $33 billion.

The budget writers from both sides of the aisle reacted to the new numbers.

“I`m very excited about the outcome,” state Rep. Gary Alexander, R-Olympia, said.  “I believe it is a responsible and realistic forecast, and I will get back with my team and prepare the rest of my budget accordingly.”

But state Rep. Ross Hunter, D-Medina, said, “The fact that it didn`t go down by a quarter of a billion, yeah, I`m real happy about that, but it`s still a very difficult problem. “

In presenting Wednesday’s forecast, the state`s chief economist, Steve Lerch, explained the primary reason behind the small bit of good news.

“The improvement in the forecast is around the housing market,” he said.  “We see a little bit higher forecast for housing permits.  That`s a real positive cause it drives both jobs and revenue.”

Also helping the economy is robust car sales.  The news, however, would have been better without the economic drag due to the federal payroll tax increase and sequestration.

“We continue to worry about what`s going on in the other Washington,” Lerch said.

Factoring in the new forecast, the state now faces a $1.25 billion hole in the upcoming budget and a mandate to add $1 billion more to public schools.  A showdown is clearly brewing about how those challenges will be met.

“I`m more convinced than ever that we can balance this budget without new tax revenue,” Alexander said.

“We`ve made all the reductions in the last four years that you can make,” Hunter said. “I`m guessing that the voters would like to do a balanced solution.  It`s what they always say when you poll them on it.”

The revenue forecast was the final piece of information that was needed before budget writers complete their spending blueprints.  Democrats and Republicans will come out with separate detailed plans in the next few weeks.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

1 Comment

  • holdeninwa

    Aren't the same clowns still in charge at all levels of tax-payer funded agencies, ie., WADOT ($160 million wasted), DSHS ($3 million lawsuit settlement), rampant waste/no-shows/no accountability? Havin' a positive revenue stream does no good unless you have qualified people in positions to make a difference– with, in this economy, less money or time (K-12 billions; bridges/roads in disrepair; public services diminished). The same ole, well-connected, unqualified folk squandering #ThePeople's hard-earned cash in this era of transparency will be found pretty quickly– and the leaders who kept them employed will be held fully accountable. This is the end of the status quo. You want to lead, you better do your job. The cracks are not only visible, literal infrastructure breakdowns are taking place on MainSt. Meanwhile, our elected leaders at the state and federal levels seem to be playin' hide-n-seek, wailin' for change publicly while behind the scenes protecting its power & that of the dreadful status quo, as if waitin' for a better day to come out is the social & political strategy of the 21st Century. Every voter, left or right or middle, wants change. Let's elect leaders who have the courage & proactive skills to make it happen. Waiting is a 20th Century past time. And let's run an audit of every managerial team at state agencies; take a look at their typical day, their productivity during each week, each month. They are paid well; let's make sure they perform. It's The People's right to accountability by its public servants.


Related Stories