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Statement from Republican
Finance Leader Ed Orcutt on today's forecasted decline in state revenue
"They either have to reduce spending by cutting
programs or they have to increase revenue by raising taxes" says Orcutt
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. Ed Orcutt, a member of
the forecast council and ranking Republican on the House Finance
Committee, issued the following statement regarding the report:
"Although our state's
economy has slipped just a little, it's clear that Washington's families
are bearing much of the economic burden with higher fuel and food costs.
And, it appears President Bush's economic stimulus checks have helped
both families and retailers. While some of the federal tax
rebates went into gas tanks and grocery carts, some went into retail
stores, preventing even worse declines in this sector.
"Ultimately, the word of
the day is 'caution.' Before today, we had been anticipating an
approximately $2.34 billion shortfall by the end of the next biennium.
Today's news of another $166.8 million decline in revenue should make us
much more cautious than we've been, especially since there's been
greater weight placed on the 'pessimistic' forecast than the
'optimistic' one. This further reduction in revenue includes a
$49.6 million cut to this biennium's ending fund balance with just a
year to go.
"We're still waiting to
hear from the Governor's office and from the majority party on how they
plan to eliminate this shortfall. It's not rocket science: they
either have to reduce spending by cutting programs or they have to raise
revenue by raising taxes. Because either option is going to
require much debate and deliberation, I think it's best to know their
plans sooner rather than later."
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For more information, contact:
Brendon Wold, Public
Information Officer: (360) 786-7698
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