|
Statement from Rep. Gary
Alexander on today's revenue forecast
The
Washington State
Economic and Revenue Forecast Council issued a report today stating
a projected decline of $166.8 million in state revenue through the
2009-11 biennium.
Rep. Gary Alexander,
R-Olympia and ranking Republican on the House Appropriations Committee,
issued the following statement:
"This
forecast reinforces what we already knew -- that we're looking at a
very big budget problem in the next biennium. While the relatively
small amount of this forecast change doesn't trouble me very much,
the direction does -- and it's down, continuing a deterioration in
our revenue outlook that started last November.
I'm
also concerned that this forecast might still be too optimistic.
I'd point out that in this report they're assuming only a 50 percent
probability that their forecast is correct, and a 30 percent
probability that an alternative pessimistic forecast that is $530
million lower is correct. That doesn't make for much comfort
when we're already looking at a budget shortfall of nearly $2.5
billion, especially when the Governor's own Council of Economic
Advisors thinks the housing sector is going to be significantly
weaker over the next couple of years than the Forecast Council.
"The June forecast just reminds us once again -- if anybody needs
reminding -- that you can't sustain budgets built on one-time money.
You can't spend more than twice the revenue you took in without
having problems down the road."
# # #
For more information, contact:
Brendon Wold, Public
Information Officer: (360) 786-7698
|