A Preliminary Look at the Governor's 2012 Supplemental
On Monday, Governor Gregoire released her proposed 2012 supplemental budget for 2011-13. This follows alternatives for reductions that she laid out in October (and which I wrote about here). The Budget Highlights document explains the problem: When Governor Gregoire and the Legislature approved the 2011–13 budget last spring, the state was projected to end the […]
November 18 , 2011 - Richard S. Davis
State revenues recovering slowly – still below peak
After yesterday’s forecast, we received some questions about how state revenues have performed historically. Kriss put together a graph showing Near General Fund State (NGFS) collections, including the forecast through 2013. These projections show tax receipts not climbing back to 2008 levels until the end of the biennium. This chart, tracking NGFS spending since 2000, […]
November 17 , 2011 - Kriss Sjoblom
State revenue forecast for 2011-13 reduced by $122 million
The state Economic and Revenue Forecast Council updated its forecast of general fund-state revenues today. The forecast for the 2011-13 biennium was reduced by $122 million, while the talley of revenue for 2009-11 was increased by $25 million. The net bad news was thus a reduction of $97 million. From the press release: Our current […]
November 16 , 2011 - Richard S. Davis
Will Washington voters approve higher taxes? It's a tough sell.
In my column this morning, I take a look at recent election results and the state revenue collections report to consider the likelihood of voter approval of new taxes to balance the state budget. It’s never risky to bet against tax hikes. Good times or bad, voters are reluctant to part with their money. Colorado […]
November 14 , 2011 - Emily Makings
Judicial Branch Spending
Last week, the Chief Justice of the Washington Supreme Court, Barbara Madsen, wrote an article in the News Tribune on the impact of budget cuts on the state’s judicial system. She writes, In a September 2010 survey on funding impacts, Pierce County courts reported cutting several weeks of jury trials. That resulted in a growing […]
November 11 , 2011 - Kriss Sjoblom
October 11 to November 10 State Revenue Collections $22.5 Million Below Forecast
The Washington State Economic and Revenue Council (EFRC) today issued its November Economic and Revenue Update. Here is the summary: The U.S. economy has performed as expected in the last forecast, but the outlook remains extremely uncertain. Like the nation, the Washington economy has performed close to expectation. The state continues to benefit from strength […]
November 09 , 2011 - Emily Makings
More on the Governor's Budget Reduction Alternatives
About two weeks ago, Governor Gregoire released a list of budget reduction alternatives — both her preliminary choices for cuts ($1.65 billion) and additional alternatives ($3.84 billion). (She will officially propose a 2012 supplemental budget later this month.) She also includes additions to the reserve of $390 million (from delaying the June 30, 2013 apportionment […]
November 08 , 2011 - Emily Makings
New Brief: The Budget Arc: State Spending from Expansion to Recession, 2003-2013
Our latest policy brief looks at state spending trends from 2003 to 2013. The recession isn’t the only reason the state budget situation is such a mess. Spending choices made in flusher years are also contributing factors. The numbers we cite for the 2011-13 biennium are as budgeted — they will be cut further. The […]
November 02 , 2011 - Richard S. Davis
A look at the budget math for the special legislative session (and the general)
In my column in The News Tribune this morning, I examine the tough math facing lawmakers and the governor as they try to balance the state budget, which now faces a $2 billion gap between available revenues and planned spending. The economy, under the most optimistic growth scenarios, will not grow fast enough to fill […]
October 31 , 2011 - Richard S. Davis
Boeing CEO explains what business wants from the other Washington
A good op-ed by Boeing CEO Jim McNerney appears in today’s Wall Street Journal. For the good of the nation, our elected leaders must now find it within themselves to pass sound laws, regulate judiciously, and put aside escalating tactical political battles. If the super committee succeeds [in its deficit-reduction mission], the White House and […]