Revenue forecast up by $110 million for 2011-13, $121 million for 2013-15; Nealey says avoid unnecessary tax increases
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Revenue forecast up by $110 million for 2011-13, $121 million for 2013-15; Nealey says avoid unnecessary tax increases
The Washington State Economic and Revenue Forecast Council today released its quarterly revenue forecast for the 2011-13, 2013-15 and 2015-17 budget cycles. The council is projecting a $110 million increase in revenue for 2011-13, a $121 million increase for 2013-15, and a $51 million increase for 2015-17. This means state lawmakers will have an additional $231 million in revenue as they consider the 2013-15 operating budget and the 2011-13 supplemental operating budget.
Forecasted revenue for the 2011-13 biennium which ends June 30 is $30.646 billion. It is $32.662 billion for the 2013-15 biennium and $35.357 billion for the 2015-17 biennium.
Rep. Terry Nealey, R-Dayton, who serves on the state's Economic and Revenue Forecast Council, issued the following statement:
“I'm encouraged by the forecast and pleased the economy is gradually improving. Now is not the time to be making any rash decisions that would harm this recovery – and that includes elimination of tax incentives which keep people working and producing revenue. We need to do what we can to encourage this economy to create more private-sector jobs.
“Let's also be clear: Just because the revenue projection is up doesn't mean the Legislature should be trying to find more ways to spend it on new programs. Let's take care of funding education first and then make sure we have a responsible reserve to be prepared for any further downturns in the state's fragile economy.
“This bump in revenue weakens arguments for tax increases because an extra two-billion dollars is anticipated in the next budget cycle. Hopefully, this forecast will help break the logjam in budget negotiations and bring lawmakers closer together toward adopting a two-year operating budget – one that sets spending in line with projected revenue, and meets the educational requirements of the state Supreme Court's McCleary Decision.”
