WASHINGTON STATE

Washington State House Democrats

HOUSE DEMOCRATS

Revenue uptick: State is ‘moving in the right direction — slowly’

A revised General Fund-State (GF-S) revenue forecast for the current (2013-2015) biennium and the next (2015-2017) biennium was adopted at today’s Economic and Revenue Forecast Council meeting. GF-S revenues are expected to be $30 million higher for the current biennium. GF-S revenues are expected to be $82 million higher in the next biennium.

“This fairly positive revenue news shows our economy moving in the right direction — slowly. No, of course we’re not out of the woods. We’re not yet free from the grip of the Great Recession that for more than five years has devastated our state, national, and international economies.

“Positive news at the national level has reduced uncertainty. Congress has recently, finally, put some of its House (and Senate) in order by passing a federal budget and by settling the debt-ceiling issue. Here in our state of Washington, personal income and employment growth are at least slightly north of the national numbers.

“But our projected GF-S revenue growth is still below historic averages. It should also be pointed out that $51 million of the estimated uptick is from new revenues through I-502, which legalized recreational marijuana. Increased retail-sales tax money, B&O tax money, and the excise tax on marijuana account for the growth-forecast. This is obviously the first time marijuana-revenues have been part of any revenue forecast. For that reason, I’m a little wary that we’ll actually meet those numbers.”