Yesterday's revenue forecast added nearly $282 million for the combined 2005-2007 and 2007-2009 biennia. Given the cautionary statements in the revenue report, that's more than I expected.
The AP story by Dave Ammons suggests that, while we may see some slowing, we're better off than most places.
Even as the U.S. worries about recession, "probably our economy will weather through," given the expansion of aerospace, software and other high-paying industries, [director of the forecast council ChangMook] Sohn said. Exports, including airplanes and farm goods, are doing extremely well, he said.
He said he's "not pessimistic at all," but added, "Some slowdown is inevitable." His new forecast is for slow revenue growth, in the range of 3 percent a year, less than the historic average.
In the Spokesman-Review, Richard Roesler quotes Sohn pointing out future difficulties.
[Sohn] said, however, saying that a slowdown in growth is "inevitable" here — and that state coffers will see that, likely the state's next biennial 2009-2011 budget cycle.
"We are expecting a much slower increase in revenue for the next biennium," Sohn said.
It's good news, no doubt. So's this:
Gov. Chris Gregoire has long been concerned about the roller-coaster nature of the state's economy and budget, [budget director Victor] Moore said. And the obvious way to avoid sharp budget cuts in lean times, he said, is to build up the state's savings. ...
Accordingly, people shouldn't expect to see a flurry of new state programs with that extra $281 million, he said. He suggested that most of it should go to savings.
"We're looking at a very small agenda for this," he said.
Let's hope the Legislature agrees.
