Gov. Gregoire's statement on February interim revenue forecast

For Immediate Release: February 19, 2009

OLYMPIA � Gov. Chris Gregoire issued the following statement on today�s revenue forecast by the state�s Economic and Revenue Forecast Council:

�Today�s preliminary revenue forecast reflects the severe effect the national recession is having on the state�s budget. In the budget period that ends June 30, we now face the loss of an additional $721 million, which does not include caseload projections that will be released next month. The drastic drop in state revenue, brought on by the deepening recession, will require us to take decisive action. My budget office and I have been expecting and preparing for this shortfall, and we are working now with legislative leaders to address the shortfall through the end of this biennium.

�The forecast for the next biennium is not much brighter, with a projected additional $1.6 billion drop in revenue resulting in an approximate $6.8 billion shortfall for 2009�11. This number represents about 20 percent of the state budget, the largest shortfall in state history. To put this number in perspective, every dollar we now invest in higher education, our corrections system and children�s health care services would not be enough to cover the shortfall. Washington and 45 other states now face budget shortfalls of an estimated $350 billion.

�The federal economic recovery package signed this week by the president will help us begin a long-term economic recovery effort and assist in addressing some of our revenue shortfall. Yet, I want to be clear, the package is not a cure-all for either the recession or the budget shortfall. In the next week, I will be meeting in Washington, D.C., with members of the Obama administration and with my gubernatorial colleagues to discuss additional steps we can take as we continue our joint efforts to identify solutions to the recession and resulting state budget shortfalls.

�I want to thank both Democrats and Republicans in the state Legislature for their bipartisan support of the early action and belt-tightening bills, which I signed yesterday. In this same vein of swiftness and cooperation, we will continue to work together to find solutions to these budget challenges, build a solid foundation for our future and provide support for Washington families. We must maintain our resolve to make tough choices to ensure we come out of this recession stronger than ever.�