Rep. Orcutt issues statement on new revenue forecast

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FOR IMMEDIATE RELEASE

CONTACT: John Handy, Communications Director | 360-786-5758

Rep. Orcutt issues statement on new revenue forecast

Legislators in Olympia today adopted the most recent revenue forecast issued by the Washington State Revenue Forecast Council.

According to Chief Economist Dr. Arun Raha, the 2009-11 General Fund-State net change is an increase of about $558 million from the February forecast due entirely to new taxes and other revenues passed by the 2010 Legislature. Excluding these tax and fee increases, the 2009-11 forecast is down about $207 million from February.

Rep. Ed Orcutt, R-Kalama, member of the revenue forecast council and ranking Republican on the House Finance Committee, released this statement:

“The numbers show us the state's economy is improving, but much more slowly than we expected. With only 200 private-sector jobs added in May, it's obvious that employers are reluctant to rehire workers.

“We lost nearly half of our ending fund balance in a single revenue forecast. If the federal money doesn't come in, we will be in the red for the second consecutive year.  Last year, it was due to a failure to recognize downward trends seen after the March forecast. This year, it is due to budget writers' dependence on one-time federal money that may not materialize.

“Budget writers hoped the economy would turn around. They hoped for more federal dollars. Instead of hoping and wishing, we need to balance this budget with tried and true budgeting practices that every private employer must do.

“We need to balance this budget based on what the economy is doing, not what we want taxpayers to do. We should have done this in 2009 and 2010. It is now imperative that we do this in 2011.”

For more information, contact Brendon Wold, Public Information Officer: (253) 973-0505.

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Washington State House Republican Communications
houserepublicans.wa.gov