Washington State Governor ChristineGregoire called for a
special legislative session to begin November 28th, to
address the $1.4 billlion deficit forecast for 2011-2013.
Gregoire decided on the special session one week after state
chief economist, Arun Raha,reduct the revenue forcast by the
$1.4 billion.
A weak job economic outlook is the biggest factor in the
decision to lower the forecast. Only 50,000 jobs have been
added to the state' economy since February 2010 according
to the "Economic and Revenue Update" for September published
by the Economic and Revenue Forecast Council.
Most of Washington's revenue comes from sales taxes but when
people are out of work the tendency is to conserve money and
buy less. The fragile state of the world economy is also
playing a role in people's decision making.
Europe and DC have had an impact on people's conidence in the
economy and the recession has continually held Washington's
economy back.
With less revenue to draw upon, cuts in spending are the
state's next stpe. Where to make those cuts, and how these
decisions are made will be the question for the special
legislative session.
The biggest challenge is that 60 percent of the state's
budget is constitutionally protected. The 40 percent,
where cuts are made, are in areas such as social services
and eduction.
Sheila McKinney
