The state’s Revenue and Economic Forecast Council issued a new report Friday that only serves to fuel speculation the September 15th revenue forecast could dramatically reduce state revenues.
The quarterly economic review, found here, generally informs the revenue forecast which follows a week or two later. It is thought next week’s forecast could drop anticipated tax collections for the two-year budget cycle by much as $2 billion. State agencies, including state universities, already have been asked to model cuts of 5 percent to 10 percent.
In last week’s economic report, the council reported that it is “increasingly pessimistic about the outlook for the future” and that “the probability that this fragile recovery gives way to another recession has increased.” While Washington has added 6,800 new jobs in June and July, some 9,200 were previously projected.
The council has revised its job growth expectations downward into 2013.
As legislators mull a possible special session and new cuts, it’s important to note that a number of options are off the table because they’ve already been implemented in the underlying two-year budget. College tuition is among them as the Legislature already has assumed consecutive undergraduate increases of 16 percent for the current academic year and the next.