In yet another sign that the state’s current economic and revenue forecast is accurate, the state’s actual tax collections for May came in nearly as predicted.
In the last monthly tax collections report before next week’s quarterly forecast update, Washington’s taxes brought in $15.1 million more than forecast.
“Cumulatively, revenue collections are still coming in as predicted,” noted the report from the state Economic and Revenue Forecast Council. “Total collections in the four months since the February forecast are $24.8 million (0.5%) higher than forecasted, out of $4.7 billion in collections. Excluding special factors, cumulative collections are only $15.7 million (0.3%) higher than forecasted.”
The report was iffy on the prospects for the state’s economy and, in turn, its budget.
– May U.S. employment grew by only 69,000 jobs, making for a third consecutive month of employment growth below most economists’ expectations.
– The U.S. unemployment rate increased 0.1% to 8.2%.
– The Washington economy continues to grow modestly in early 2012.
– While the state’s economy continues to outperform the nation slightly, any national or global setback will be felt here as well.
The state forecast council meets next Wednesday to approve an updated forecast of both the economy and projected tax collections.
Here is a pdf of the entire report.