The Olympian Logo

Tax collections continue to slide | The Olympian

×
  • E-edition
  • Home
    • Customer Service
    • About Us
    • Buy Photos and Pages
    • Contact Us
    • Plus
    • Mobile & Apps
    • Newsletters
    • Newspaper in Education
    • Subscribe
    • Subscriber Services
    • Archives

    • News
    • Business
    • Crime
    • Databases
    • Death Notices
    • Education
    • Local News
    • Military News
    • Obituaries
    • Politics & Government
    • State
    • Traffic
    • Watchdog
    • Weather
    • Opinion
    • Cartoons
    • Editorials
    • Letters to the Editor
    • Opinion Columns
    • Submit a Letter
    • Sports
    • College
    • High School
    • Mariners
    • Preps Stats
    • Seahawks
    • Sounders
    • UW Huskies
    • Politics
    • Living
    • Announcements
    • Food
    • Health & Fitness
    • Home & Garden
    • Travel
    • Entertainment
    • Arts & Culture
    • Comics
    • Puzzles & Games
    • Events Calendar
    • Horoscopes
    • Movies
    • Restaurants
    • Outdoors
    • Fishing

  • Classifieds
  • Jobs
  • Moonlighting
  • Cars
  • Homes
  • Place An Ad
  • Mobile & Apps

Politics & Government

Tax collections continue to slide

JOSEPH TURNER; The News Tribune

    ORDER REPRINT →

September 18, 2009 12:00 AM

Washington lawmakers might have to cut state spending by as much as $1 billion when they come back in January to re-write the state budget, because of a further decline in tax collections and a greater demand for services.

Victor Moore, budget director for Gov. Chris Gregoire, said Thursday the revised budget the governor submits to the Legislature in mid-December probably will cut between $500 million and $1 billion from the roughly $30 billion two-year operating budget for 2009-11 that took effect July 1. Passing that budget required this year’s Legislature to make $4 billion in cuts.

Moore made his remarks after the state Economic and Revenue Forecast Council met in Olympia and learned state tax collections will be $238 million less than what was expected only three months ago.

That means all $739 million the governor and Legislature had expected to be left in its main checking and “Rainy Day” savings account would be wiped out by mid-2011 and the state would be nearly $200 million in the hole.

SIGN UP

Sign Up and Save

Get six months of free digital access to The Olympian

SUBSCRIBE WITH GOOGLE

#ReadLocal

The projected deficit is expected to grow even deeper in November. That’s when the state finds out how many more people have signed up for Medicaid, how many kids are enrolled in public school and how many criminals are in prison. Greater demand in those areas could widen the gap between tax collections and the need for spending.

Nonetheless, members of the forecast council said they saw no reason for lawmakers to come back in a special session before January to rewrite the state budget.

“We should get through the end of the year and into next year,” said Sen. Craig Pridemore, D-Vancouver, chairman of the forecast council.

“Special sessions are for emergencies,” council member Rep. Ross Hunter, D-Medina, said. “This is not an emergency.”

Arun Raha, the state’s chief economist, was the bearer of the bad news.

“I continue to worry about the downside risks of this recovery,” Raha said. “Consumer spending is bumping along the bottom. If spending does not pick up, we risk a double-dip bottom.”

Raha said he thinks Washington and the nation have hit the bottom of this current recession, and the recovery will begin soon.

“We are mildly – and I stress, mildly – more optimistic than we were in June,” he said. “But the recovery is still fragile and fraught with risk.”

He said he expects the state to collect less money in the 2009-11 budget cycle than it collected in the two-year budget cycle that ended June 30 – $29.6 billion, compared with $29.8 billion. That’s money that goes into the state’s general fund, its main checking account.

The state’s overall budget is about $70 billion, including all the federal money, as well as the transportation and capital budgets.

Rep. Gary Alexander of Olympia, top Republican on the House budget committee, urged caution.

“I don’t want us to get too hopeful,” he said.

State Sen. Joe Zarelli, top Republican on the Senate budget committee, said the time for lawmakers to start rewriting their own budget is when they come back to the state capital Oct. 1-3 for previously scheduled committee meetings.

“We shouldn’t count on more bailout money from the federal government, and I don’t sense the voters of Washington are in favor of the majority party’s proposals to raise taxes,” Zarelli said in a statement. “So, the Legislature simply has to step up. Next March, when it’s time to adopt a supplemental budget, will be too late.”

Raha said relatively little of the federal economic stimulus money has been spent. That won’t really kick in until summer and fall of 2010, he said. That’s what will help the state economy keep its head above water, he said.

“Government has raised its spending to make up for the private consumer, the money that consumers are not spending,” he said. “But if (consumer) confidence doesn’t improve and people (don’t) start spending, we are at risk of a double dip.”

joe.turner@thenewstribune.com

Joseph Turner: 360-786-1826

blogs.thenewstribune.com/politics

  Comments  

Videos

Trump wants people to come into the US ‘in the largest numbers ever’ legally

Bernie Sanders set the agenda. But can he win on it?

View More Video

Trending Stories

Undercover child sex sting leads to arrest of 22 men, many from the South Sound

February 21, 2019 04:28 PM

State commission removes 2 Thurston Conservation District board members from office

February 21, 2019 09:06 AM

Tumwater School District names 3 finalists for superintendent

February 21, 2019 03:36 PM

Olympia will offer free yard debris drop-off this weekend

February 21, 2019 10:06 AM

Realtor, sports consultant say they are running for Lacey City Council

February 21, 2019 07:00 AM
Local display advertising by PaperG

Read Next

Judge dismisses charges over boy’s death on waterslide

Business

Judge dismisses charges over boy’s death on waterslide

The Associated Press

    ORDER REPRINT →

February 22, 2019 02:47 PM

A judge has dismissed criminal charges against a Kansas water park owner and the designer of a 17-story slide on which a 10-year-old boy was decapitated.

KEEP READING

Sign Up and Save

#ReadLocal

Get six months of free digital access to The Olympian

SUBSCRIBE WITH GOOGLE

MORE POLITICS & GOVERNMENT

Democrats say military projects are at risk as they prepare to defy Trump on wall

Local

Democrats say military projects are at risk as they prepare to defy Trump on wall

February 22, 2019 01:47 PM
Tacoma-based program to help elderly and disabled homeless folks could go statewide

Local

Tacoma-based program to help elderly and disabled homeless folks could go statewide

February 22, 2019 01:55 PM
Correction: Empire Cast Member-Attack story

Celebrities

Correction: Empire Cast Member-Attack story

February 22, 2019 11:47 AM
UN nuclear watchdog: Iran stays within limits of 2015 deal

Business

UN nuclear watchdog: Iran stays within limits of 2015 deal

February 22, 2019 09:20 AM
Gov. Matt Bevin dismisses his low poll numbers, welcomes Trump’s help

Local

Gov. Matt Bevin dismisses his low poll numbers, welcomes Trump’s help

February 22, 2019 08:06 AM
Fed will be ‘patient’ in rate hikes amid global growth woes

Business

Fed will be ‘patient’ in rate hikes amid global growth woes

February 22, 2019 08:31 AM
Take Us With You

Real-time updates and all local stories you want right in the palm of your hand.

Icon for mobile apps

The Olympian App

View Newsletters

Subscriptions
  • Start a Subscription
  • Customer Service
  • eEdition
  • Contests-Promotions
  • Vacation Hold
  • Rewards
  • Pay Your Bill
Learn More
  • About Us
  • Contact Us
  • Newsletters
  • News in Education
  • Photo Store
  • Archives
Advertising
  • Information
  • Place a Classified
  • Local Deals
  • Place an Obituary
  • Today's Circulars
  • Special Sections
Copyright
Privacy Policy
Terms of Service


Back to Story