Unlike the last recession, today's economic pain is equally shared whether you are in Seattle or Spokane, according to Al Ralston, president, Washington Research Council. The WRC is an independent, non-partisan public policy research organization based in Seattle. Ralston briefly addressed members of AWB's Government Affairs Council today on the state's economic climate. Among his observations:
- Washington's new unemployment rate -- 9.4 percent -- now mirrors that of the nation, and that figure is "probably going to lag for awhile."
- The six areas of strength for our state during the last economic expansion were aerospace, software, buisness service, construction, health care and agriculture. Of the six, only health care is continuing to expand as of now.
- June's revenue collections will include $166 million in unexpected property tax revenue. Absent that, collections would have been $70 million below the forecast (due out tomorrow).
- The state is still producing revenue, just not at the rate it was after the last recession. Despite warnings that spending was unsustainable, lawmakers were "not able to put on the brakes," Ralston said.
Despite recent reports that Washington is likely to lead the charge nationally out of the recession, Ralston echoed comments by this morning's speakers -- OFM's Victor Moore and the governor's policy director, Marty Brown -- that the recovery for our state will likely be a slow one.
