Slow Economic Recovery Pushes State’s Revenue Down…Slightly
The lackluster economic recovery is pushing Washington State’s revenue forecast down, but only slightly. The economic and revenue forecast council said Wednesday that state government can expect to bring in $16.1 million less than projected when they finished their budget adjustments in April.
Those are figures for the current two year budget cycle the ends next June. That downgrade in the state’s revenue forecast shows far more stability than other downward revision in recent years.
Forecaster still have a variety of concerns, particularly with the debt crisis in Europe and a possible slowdown in Asia, and they say it’s possible that revenue could still decline by $1 billion or more.
Lawmakers left enough in reserves to handle the slight reduction in projected revenue.