|State Economic and Revenue Update|
Chief economic forecaster, Arun Raha has projected that state revenue will be $84.7 million lower than predicted last November. Without any changes in the current budget, this would increase the gap between revenue and program cost from $3.6 billion to $5.5 billion.
“The economic outlook remains cloudy with a great deal of uncertainty,” said Raha. This is due to factors such as uncertain gas prices, even less predictable with recent Mideast unrest, as well as the earthquake and tsunami in Japan, one of Washington’s primary trade partners.
The economic and revenue update illustrates a variety of economic factors both positive and negative. The decrease in housing construction from December to January, a decrease in unemployment from a year ago, and the potential economic growth with Boeing’s tanker contract all play a vital role in Washington State’s future.
The state legislature is now faces a shaky economic climate and less money to work with.