Thursday, September 17, 2009

Governor calls for spending cuts in response to revenue forecast

Washington's budget outlook worsened by an additional $238 million today according to the state's Economic and Revenue Forecast Council. In response to this news, Governor Gregoire said in a press release: “Although we believe the recession has bottomed out, it will take some time for revenues to recover. I am preparing a supplemental budget request that accounts for the revenue shortfall we have experience since May . . . The budget I signed in May was built on tough decisions that I made together with the Legislature. The shortfalls in the last two forecasts necessitate more spending cuts, as do the lawsuits that have restricted our ability to implement reductions.” The focus on spending reductions versus tax increases is commendable. Earlier this year when the Legislature was considering tax increases, state and national economists warned that such action would further damage Washington’s economy and hamper economic recovery . . . READ MORE


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