KPLU Local News
(2009-11-20)
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OLYMPIA, WA
(N3) -
In Olympia, the sea of red ink is reaching drowning depth. Washington state's chief economist Thursday subtracted another three-quarters of a billion dollars from the state checkbook. The updated revenue forecast widens the state's budget deficit to more than two and a half billion dollars. KPLU's Tom Banse has details.Full story
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The good news according to chief economist Arun Raha is that Washington's "economy is finally recovering." The bad news is that state revenue is not. Raha told state lawmakers to forget about receiving 760 million dollars in anticipated sales taxes, business taxes, and other revenue. The forecaster says consumers are simply not spending.
Arun Raha: "Gas prices have been creeping up and not likely to go down soon. The unemployment rate is still rising. So, it is not surprising that consumer confidence - while up off the floor - is treading water."
Washington Governor Chris Gregoire and some top Democratic legislators say they're open to tax hikes to fill the growing budget hole. Republicans warn against that. Gregoire will take the first run at rebalancing the state budget next month. I'm Tom Banse in Olympia. © Copyright 2012, N3
