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Wednesday, November 14, 2012

State Revenue Forecast Up, then Down. Slightly.

Posted by on Wed, Nov 14, 2012 at 3:03 PM

The state's latest quarterly revenue forecast is in. The good news is that short term revenue is up slightly, about $8 million through the end of the current biennium. The bad news is that the longterm forecast is down slightly, about $88 million over the course of the 2013-2015 biennium. The no news is that this really isn't all that much different from the previous revenue forecast.

Governor Chris Gregoire sums up all you really need to know:

“We have a [$900 million] shortfall even before we begin trying to address McCleary,” Gregoire said. “I’ve instructed state agencies and my fiscal staff to scrub the budget for every possible savings. But, as I’ve been saying for months, it will not be possible to solve this problem entirely with spending cuts.

Whether Governor-elect Jay Inslee really needed to pledge not to raise taxes in order to win election we'll never know. But regardless, Democratic legislators don't need Inslee's support. Since any substantive tax increase would end up coming before voters via referendum or initiative anyway, lawmakers might as well just bypass the governor and refer a revenue proposal directly to the people.

That's not my preferred way to govern, but thanks to our initiative and referendum system, that's the political reality here in Washington state. So we might as well use it as best we can.


Comments (5) RSS

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treacle 1
I'd mention looking into creating a non-interest bearing complementary currency to help deal with state budget issues... as well as the very obvious problems looming with the so-called "Age Wave" in the next ten years. But it would fall on deaf ears because nobody really understands where money comes from anyway. Complementary currencies are a viable solution to these problems -- not to mention helping take inflationary pressure of the national currency -- but there isn't profit to be made from them, so they aren't really pursued or backed by larger entities... assuming those entities even know about these things.
Posted by treacle on November 14, 2012 at 3:44 PM · Report this
Will in Seattle 2
The only thing that would make sense would be a one-shot tax on assets for anyone with more than $1 million.

Or capital gains tax on gains (except basic $1 million house exemption) above $100,000 each year.

Never happen, though. Gates and Allen would kill it like they kept forcing the charter schools down our throats.
Posted by Will in Seattle on November 14, 2012 at 4:14 PM · Report this
Rally behind HB2100 and create an asset tax then.
Posted by Supreme Ruler Of The Universe http://_ on November 14, 2012 at 8:49 PM · Report this
legislators cannot and will not vote a tax increase unless the Supreme Court says 1053 (and all bastard children thereof) are unconstitutional. Even then they might not, since most want to get elected again and Eyman's latest horror was voted in.
Posted by sarah70 on November 15, 2012 at 12:25 AM · Report this
Theodore Gorath 5
But why don't you guys in Seattle just vote to raise taxes?

It is not like I have heard of any ridiculous legislative barriers to stop you from doing so.
Posted by Theodore Gorath on November 15, 2012 at 5:52 AM · Report this

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