The state Economic and Revenue Forecast Council this morning said this state’s projected deficit will grow to $5 billion in the 2009-2011 budget cycle.
The council also announced the national economic downturn has officially put Washington into a deficit in the current biennium. Up to now, we still had a surplus.
The bulk of the revenue downturn comes from less consumer spending.
“No one is buying cars or houses,” chief forecaster Arun Raha said.
A hiring freeze and other measures taken by the governor have helped reduce the impact of the projected deficit. But at $5 billion, the projected deficit will cause more calls for cuts.
State budget director Victor Moore said, “We’re going to have to find some cuts in the current biennium.” Council member Sen. Joseph Zarelli called for a supplemental budget in the first week of the legislative session in January to cut the current budget.
The council said the need for a federal and state economic stimulus package are critical.
All this means there will be increased pressure to take a meat ax to the budget. There will be talk of layoffs, program cuts and not funding the pay raises, benefits and other economic parts of your just-ratified contracts.
So we need to be creative and show lawmakers where we can make surgical cuts. As Federation Executive Director Greg Devereux told National Public Radio this week: “Layoffs are the worst anti-stimulus program you can actually have.”
You may know of possible spending cuts—big and small—that could be proposed. If you do, go submit your ideas directly to WFSE Executive Director, Greg Devereux. Or, share your suggestions, comments here.
Watch these hotlines, website and the union newspaper for more updates.
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