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In case you were starting to feel optimistic, state gets double dose of bad budget news

Post by Peter Callaghan / The News Tribune on Nov. 13, 2009 at 3:20 pm with 6 Comments »
November 13, 2009 3:21 pm

The Olympian’s Brad Shannon has a good blog post on it – the number of people needing state services is up and tax collections are down.

Either one is not good. Both together have pushed the potential state budget deficit to $2 billion.

Leave a comment Comments → 6
  1. Of course it has, Its the same 2-4 billion that was there last budget and covered/hidden by 1 time fed $. It will continue to rise. It should not be any kind of surprise, it has been there all along.

  2. peter callaghan says:

    To clarify, the current budget is a two year budget passed last April. It runs until the summer of 2011. The deficit referred to in this post is $2 billion because of a deterioration in tax collections since the budget passed.

    This budget does have one-time federal stimulus money. But it remains in this budget for the entire two years. Any shortages/shortfalls resulting from the end of that money will come into play in the 2011-2013 budget, not this budget.

    So this shortfall hasn’t been hidden by federal money. It is in addition to the federal money already included in the 2009-2011 budget.

  3. jimkingjr says:

    And any shortages/shortfalls caused by diversions of capital monies (a $20 million problem for the state parks budget, on top of the tabs shortfall, as an example), use of one-time monies, and other increasingly hard to find budget gimmicks (because the sleight of hand is almost all used up).

  4. witchiwoman says:

    After the numbers get this high, they lose their impact, and just look like more numbers on a page.

  5. “After the numbers get this high, they lose their impact, and just look like more numbers on a page. ”

    Don’t worry. When the state starts cutting more services and/or raising taxes, it will be real to you.

  6. crusader says:

    Didn’t spending increase by about 36% under the reign of Ms. Gregoire? Undo everything she did. Problem solved.

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