The Associated Press
OLYMPIA — The wounded economy took another bite out of state government’s checkbook today, pushing the budget deficit to nearly $9 billion through mid-2011.
The new figure is the last major piece of financial guidance for state legislators as they prepare to unveil budget-balancing plans in the coming weeks.
But despite the massive pool of red ink and widespread talk of grim budget cuts, the Legislature still had no firm timeline for finishing secret negotiations and revealing its budgets to the public.
In the meantime, special interest groups have been working on ideas for a separate package of tax increases that voters could decide this fall.
They’re hoping to raise up to $2 billion to offset the deepest of the expected budget cuts, which will likely include much less money for education, human services, parks, state worker benefits and more.
The state’s chief economist, Arun Raha, reiterated that the nation’s economy is in its worst state since the Great Depression.
“That is not to say we are headed there — not by a long shot. But No. 2 isn’t exactly great either,” he deadpanned.
The roughly $9 billion deficit is the difference between how much money is coming into the state, mostly through taxes, and how much it would cost to continue current spending plans through the 2011 fiscal year.
The shortfall estimate also assumes saving several hundred million dollars as a cushion against further economic downturns.
The Legislature already has cut some spending, used federal stimulus money and transferred dollars from other accounts to begin addressing the problem. But even with those steps, the budget shortfall represents about a quarter of the state’s operating budget.
——
On the Net:
Legislature: http://www.leg.wa.gov
