Anticipated state tax collections for the rest of the current two-year budget cycle fell by $122 million this morning, a relatively small variance from previous expectations. The state’s anticipated budget shortfall is still in the neighborhood of $2 billion.
You can find the new forecast here, produced by the state’s Economic and Revenue Forecast Council.
Gov. Chris Gregoire will use the assumptions found in this forecast as a basis for the operating budget proposal she’s expected to release next week. The Legislature is scheduled to convene Nov. 28 to begin drafting its own versions.
Arun Raha, the state’s chief economist warns of significant downside risks due to international financial instability and its potential impacts on the U.S. banking industry.