State expects $861 million boost through middle of 2021

  • By Rachel La Corte The Associated Press
  • Friday, March 22, 2019 8:42am
  • News

By Rachel La Corte

The Associated Press

OLYMPIA — Washington lawmakers received updated revenue numbers Wednesday that give them more money to work with as they prepare to unveil their two-year state budget proposals.

The numbers released at a meeting of the Economic and Revenue Forecast Council showed state revenues look to increase by about $861 million more than expected through the middle of 2021.

Overall state revenues projected to increase by nearly $307 million for the current two-year budget that ends mid-2019, and the projections for the next two-year budget that ends in mid-2021 look to increase by nearly $554 million, pushing the state budget up to $50.6 billion.

Budget plans

House Democrats have said their budget proposal for the 2019-21 budget cycle will be released early next week, and Democrats in the Senate will follow with their own proposal.

Democratic Rep. Timm Ormsby, a member of the council and the chief budget writer for the House, said that while the forecast was good news, “It doesn’t take away from the arithmetic problem that we came here with.”

He said that the budget growth won’t support adequately funding programs in addition to maintaining government services at current levels, including billions put toward the state’s education system. A part of that ongoing cost is the investment the Legislature has made in basic education as part of a multi-year court case that was resolved last year.

“This is about paying the bills and the state’s commitment in a wide variety of areas that we continue to make investments to improve the quality of life of the residents of Washington state,” he said about the need for additional revenue.

Sen. John Braun, the ranking Republican member of the Senate Ways and Means Committee and a fellow member of the council, disagreed, saying there are a number of savings options that don’t hurt services in the budget.

“I see no reason, given the growth of our budget, why we would need new taxes, to both maintain current services and make hopefully smart investments,” he said.

Economic impact

In December, Democratic Gov. Jay Inslee proposed a new capital gains tax and an increase in business taxes on services as part of his budget proposal, which included increasing spending on the state’s mental health system and the environment.

Potential economic impacts due to the grounding of the Boeing 737 MAX were mentioned in the forecast but without a completed investigation or current changes to the production schedule, it is an unknown factor. Boeing is a major employer in the state.

The numbers released Wednesday do not vary heavily from the forecasts in November. Overall, Washington’s economy continues to outperform the U.S. economy as a whole, but by smaller margins than in the past.

Once the Democratic-led Senate and House have both released and passed their budget proposals out of their respective chambers, they will work on negotiating a final budget. The current 105-day legislative session is set to end April 28.

________

A Washington Newspaper Publishers Association Foundation reporting internship report contributed to this story.

More in News

Port Angeles teachers’ union votes to honor paraeducators’ picket line on April 8

Members of the Port Angeles Education Association voted overwhelmingly… Continue reading

Funding needed for Port Townsend homeless shelter

Operation at Legion Hall to close April 30

Port of Port Angeles renews lease for Composite Recycling Technology Center

Agreement covers 26,000 square feet at airport business park

Fire district volunteers lauded

Clallam County Fire District No. 3 recently recognized seven members… Continue reading

Clallam to continue providing deputy to Forks

Contract includes wages, mileage and maintenance reimbursement

Maintenance closes section of Olympic Discovery Trail

A portion of the Olympic Discovery Trail is closed… Continue reading

Hanna Paoluccu of Alexander, N.Y., and Rosie Berg of Nevada City, Calif., members of the Hood Canal Salmon Enhancement Group and working with the Jefferson County Noxious Weed Board, remove poisonous hemlock weed from along the Larry Scott Trail in Port Townsend on Monday. (Steve Mullensky/for Peninsula Daily News)
Poison hemlock removal in Port Townsend

Hanna Paoluccu of Alexander, N.Y., and Rosie Berg of Nevada City, Calif.,… Continue reading

YMCA to build childcare facility

$1-2M still needed for $6.7M project

Port Townsend Police Department recognizes award recipients

The Port Townsend Police Department recognized officers, employees, volunteers… Continue reading

Port Angeles High School evacuated due to bomb threat

Nothing suspicious found, principal says

A tree that has grown out of its tree box and shattered a nearby curb and sidewalk in the 100 block of North Oak Street is among those targeted for removal and replacement in downtown Port Angeles. (Keith Thorpe/Peninsula Daily News)
Port Angeles tree and sidewalk replacement to begin Monday

The Port Angeles downtown tree and sidewalk replacement project… Continue reading

Grant for Forks treatment plant to be discussed

The Clallam County Opportunity Fund Advisory Board will discuss… Continue reading