Ouch: Another WA revenue dropoff
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As expected, Washington state's treasury continues to take a pounding from the global recession, sliding another $41 million in new numbers from the Economic and Revenue Forecast Council.
If you're counting, that means we're down nearly $96 million in the past two months since the last formal forecast that lawmakers used in writing the $35 billion two-year state budget. Lawmakers closed a $9 billion gap. Counting cost-cutting legislation that failed to pass, but not the potential vetoes that might save some money, we have total reserves of about $650 million now that tax-collections have fallen again.
Governor Gregoire is now holding open the possibility that a special session still might be required to re-balance the budget later this year. See here .
The new report says the U.S. economy is "giving mixed signals as it typically does just prior to a recovery" and adds that "we may be nearing the bottom of the current recession in our state." Jobless rate is 9.2 percent, Microsoft earnings are off, and Boeing orders are down. But housing permits and home sales are showing positive signs.
And this nugget: "In another sign the recession may be moderating, the Washington Institute for Supply Management Index improved to 46.7 in April from 40.9 in March." Words cannot express our relief, though it's true that we have absolutely no idea what it means.
Wanna know more? It's all here, including the whole supply index thing.
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Secretary of State
Steve Hobbs
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