Washington Revenue Forecast

Washington’s 30-day special session is more than half over and there is still no sign of a budget deal.

Slow and steady. That’s how Washington’s chief economic forecaster sums up the recovery in state revenues.

There’s suddenly a flurry of talk in Olympia about a quick resolution to the weeks-long budget stalemate. The change in rhetoric follows Tuesday’s positive revenue and caseload forecasts.

Budget writers will now have an additional $300 million-plus to help bridge their differences. They can thank a recovering housing market and improved consumer confidence.

The House and Senate have been locked in a partisan fight over whether to raise additional revenues by closing some tax exemptions. This new money could now fill that gap.

OLYMPIA, Wash. – If you’re marking milestones in the slow climb out of the Great Recession, here’s a new one: Washington state tax collections have now recovered to pre-recession levels. That was one key takeaway from Wednesday’s quarterly revenue forecast.

In late 2007, the economy went into free fall. For two years, Washington tax revenues plunged. Since 2010 it’s been a slow, steady climb back up. Now tax collections are back to where they were before the economy tanked. Bright spots include an uptick in auto sales and signs of an improving housing market.

OLYMPIA, Wash. - Budget writers in Olympia are breathing a sigh of relief. Despite the federal sequester and other risks to the economy, the state’s new revenue forecast out Wednesday is mostly flat. Even so, Washington lawmakers still face a $1 billion-plus shortfall and a court-ordered down payment for public schools.

Northwest News Network

Election year tensions erupted at Washington’s latest quarterly revenue forecast. At the center of the partisan flare-up Wednesday was former Republican gubernatorial candidate Dino Rossi. He’s been appointed to finish out a vacancy in the Washington senate.