News Releases
Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - September 18, 2000
Contact:  Governor's Communications Office, 360-902-4136

Strong economy boosts reserves and allows new investments in education, Locke says

OLYMPIA - More investments in education and the state's reserve fund should be possible thanks to a strong revenue forecast due to a healthy national economy, Gov. Gary Locke announced today.

Improvements in the economies of Washington's Asian trading partners also contributed to the stronger outlook, according to Dr. Chang Mook Sohn, director of the state Forecast Council.

"This is good economic news for the state", said Locke, but he added a note of caution.

"We have seen in the past how quickly the state's financial picture can change, "Locke said. "I will continue to press for a strong rainy day fund along with necessary long-term investments in education, transportation, the environment and other services critical to the future of our state."

Altogether, the state now expects an additional $57 million in revenues for the biennial budget period ending June 30, 2001, and another $162 million for the following biennium beginning July 1, 2001.

The forecast would put total revenues for this biennium at $21.130 billion and for next biennium at $22.765 billion.

Marty Brown, Locke's budget director, noted that under a new law passed by the 2000 Legislature at the governor's request, new revenue above the state's spending limit is now available for both the rainy day fund and to build new schools and higher education facilities.

"This is exactly the outcome the governor was seeking," said Brown.

Under the new forecast, total projected reserves rose to almost $1.1 billion. Of that, $535 million is in a restricted "Emergency Reserve," or rainy day account, requiring a two-thirds vote of the Legislature for expenditure.

The new law allowing a portion of revenues above the state's spending limit to fund education construction has already resulted in a $223 million deposit in the Education Construction Fund.

» Return to this month's News Releases
» View News Release Archive

Access Washington