Budgeting for the bottom line

See also:
2008 Supplemental Budget Highlights
Fee Increases

History tells us that no one can really predict what the economy or the state budget will look like for more than a year or two at a time.

Senate Democrats’ strategy is to strike the right balance between protecting the state’s bottom line by leaving a healthy reserve on the one hand, and protecting Washington households’ bottom line by addressing checkbook issues such as housing, health care, education, and job creation on the other.

Both bottom lines are threatened by a softening economy.

Too many families in our state are feeling intense pressure on their household bottom line. Through no fault of their own, a growing number of families and seniors are finding their household finances in the red. They are forced to make impossible choices between paying the mortgage or keeping the heat on, or between paying the car insurance or their health insurance premiums.

Recent economic news makes it all the more important to relieve some of the pressure on Washington families’ household bottom line.

Senate Democrats will continue to concentrate our investments in priorities that encourage economic growth – a good education system, a nationally-recognized business climate, and health care for our children.

We intend to meet the urgent needs of our citizens, while saving every dollar we can.

Revenue forecast

On Friday, Feb. 15, the state’s economic forecast came in, and as expected, we are predicting a lower rate of growth and about $420 million in lower-than-expected revenues. Combined with the increase in caseloads, the total amount adjusted from the bottom line projection in Gov. Gregoire’s supplemental budget is $522 million.

The forecast makes our budgeting this year a little harder.  It’s not good news, but we knew it wouldn’t be, and we’re prepared to deal with it. more>>>

Economic picture

Though the revenue dip is small in comparison to the overall $33 billion state budget, it is a sign that our state economy is not growing as quickly as it has been the last few years.

But while a growing number of economists are saying that a national recession may begin this year, Washington’s economy is in a much stronger position than the rest of the nation. more>>>

Projected deficits

Shortfalls have been predicted before. In fact, budget projections regularly show shortfalls. But gloom and doom is rarely ever warranted. more>>>