Chief
02-16-2008, 07:39 AM
http://columbian.com/news/localNews/2008/02/02152008_Forecasters-say-state-revenues-to-take-423-million-hit.cfm
Friday, February 15, 2008
By KATHIE DURBIN, Columbian Staff Writer
OLYMPIA - Washington lawmakers learned Friday that they will have $423 million less in revenue to work with as they write the state's 2008-09 supplemental budget this winter.
Dr. ChangMook Sohn, the state's chief revenue forecaster, delivered the news after reviewing the latest national economic forecast data. He said Washington won't escape the effects of a mild national recession that is expected to last through the second quarter of 2008.
"The outlook for the state economy is significantly brighter than for the U.S., but we will be affected by the national slowdown as well as our own housing market problems," Sohn said.
StatThe state's revenue shortfall is being driven by declining consumer confidence nationally, reflected in lower-than-expected sales tax revenue, and by a long-predicted slowdown in the housing market. Revenue from the state's real estate excise tax is expected to be down by $232 million by next June, a whopping 35.6 percent.
The overall revenue shortfall, the largest since 2001, still represents just 1.4 percent of the state's $30.2 billion two-year general fund budget.
But Gov. Chris Gregoire had hoped to leave a $1.2 billion ending fund balance going into the 2009-11 biennium. Budget-writers said that might not be doable now even if they draw the line at most new spending.
The House budget is scheduled for release next week, the Senate budget the week after.
"I think it's going to make a pretty interesting next three weeks," said Victor Moore, Gregoire's budget director.
This is a third of what Rep. Jim Dunn was predicting just a week ago, and he went to a lot of time and trouble to make the point that the real number was more like $1.2 Billion...
So who do we believe on this?? Jim Dunn or your lying eyes??
8)
Friday, February 15, 2008
By KATHIE DURBIN, Columbian Staff Writer
OLYMPIA - Washington lawmakers learned Friday that they will have $423 million less in revenue to work with as they write the state's 2008-09 supplemental budget this winter.
Dr. ChangMook Sohn, the state's chief revenue forecaster, delivered the news after reviewing the latest national economic forecast data. He said Washington won't escape the effects of a mild national recession that is expected to last through the second quarter of 2008.
"The outlook for the state economy is significantly brighter than for the U.S., but we will be affected by the national slowdown as well as our own housing market problems," Sohn said.
StatThe state's revenue shortfall is being driven by declining consumer confidence nationally, reflected in lower-than-expected sales tax revenue, and by a long-predicted slowdown in the housing market. Revenue from the state's real estate excise tax is expected to be down by $232 million by next June, a whopping 35.6 percent.
The overall revenue shortfall, the largest since 2001, still represents just 1.4 percent of the state's $30.2 billion two-year general fund budget.
But Gov. Chris Gregoire had hoped to leave a $1.2 billion ending fund balance going into the 2009-11 biennium. Budget-writers said that might not be doable now even if they draw the line at most new spending.
The House budget is scheduled for release next week, the Senate budget the week after.
"I think it's going to make a pretty interesting next three weeks," said Victor Moore, Gregoire's budget director.
This is a third of what Rep. Jim Dunn was predicting just a week ago, and he went to a lot of time and trouble to make the point that the real number was more like $1.2 Billion...
So who do we believe on this?? Jim Dunn or your lying eyes??
8)