Yesterday's announcement of slight slippage in state revenues may have rightly taken a back seat to Sonics v. Seattle, Obama v. Obama, and McLaren being tossed out at home. But, while lacking in drama, the forecast confirms what most of us know: Tough decisions will be required to balance next year's state budget.
Washington has not escaped the effects of the national slowdown. Although Steve Lerch, the interim director of the economic and revenue forecast council, believes we'll not be in recession, that's practically beside the point. Slow growth will not be enough to avoid a substantial gap between revenues and maintenance level spending - a gap reliably estimated at about $2.5 billion.
The Washington State Budget and Policy Center gets the structural deficit half right
The new revision does not significantly alter the fiscal challenges we face. As we have said before, these challenges arise from an ongoing structural deficit in which state revenue does not keep up with spending.
Maybe not half right, just backward. Lawmakers spent too much, too quickly, and no conceivable change in tax policy could keep up.
Jason Mercier, for the Washington Policy Center, has a suggestion for voters.
Perhaps the question candidates should be asked before the election is: "Do you plan to use budget restraint or resort to tax increases to fix the state's fiscal health?"
Chris Mulick live blogged the meeting for the Tri-City Herald, passing up an Eyman press conference and sharing the hassles of live blogging with readers. The PI's Chris McGann also provides blog coverage, as does Rich Roesler for the Spokesman-Review.
Rachel La Corte's AP story brings in the gubernatorial politics.
Gov. Chris Gregoire's Republican opponent, Dino Rossi, seized on the report to blame Gregoire for "out-of-control spending."
Gregoire said Washington was in better shape than most other states.
Brad Shannon also has a good story in the Olympian.
The next forecast comes out in September.
