Governor's office bracing for half billion dollar revenue shortfall
Victor Moore, budget director for Gov. Chris Gregoire, told a meeting of the AWB's Governmental Affairs Council Wednesday that he's preparing for a shortfall of at least $500 million when the state's quarterly revenue forecast is released Thursday.
"That's kind of my low-end number on the damage tomorrow," Moore told the group.
The expected decline in revenue combined with a large rise in demand for social services could require the Legislature to hold a special session later this year, something that neither Moore nor Marty Brown, the governor‘s legislative liaison,is excited about.
Caseloads for Medicaid and general assistance have increased significantly as the economy has worsened, raising costs by "hundreds of millions," Moore said. "More people qualify for Medicaid and general assistance," he said.
Officials are making various contingency plans based on the size of the revenue decline, but the governor is limited by law in the ways she can adjust spending, Moore said.
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