State’s revenue forecast positive; Nealey cautions that economic recovery is still fragile
State's revenue forecast positive; Nealey cautions that economic recovery is still fragile
The Washington State Economic and Revenue Forecast Council today released its quarterly revenue projections for the state and the news is positive. Since the previous June forecast, officials say closing revenue for the 2011-13 biennium is up $23 million. The forecast also projects an increase of $345 million for the 2013-15 biennium, of which $123 million is due to changes made by the Legislature during the 2013 session and non-economic changes. Forecasters are also predicting an increase of $342 million in the 2015-17 biennium, of which $249 million is from recent legislative and non-economic changes.
Rep. Terry Nealey, R-Dayton, who serves as the House Republican member on the council, issued this statement following the forecast announcement:
“I think we're all very pleased that after a long period of negative forecasts, we're now seeing a trend of positive ones. However, we need to proceed cautiously as a state because our economic recovery is still fragile. Our state's employment figures have a long way to go before they reach pre-recessionary levels, especially in many of our rural counties. And with Obamacare soon kicking in, there's plenty of uncertainty among employers.
“The Legislature also needs to take a lesson from when it spent revenue surpluses in good years and then found itself trying to close multi-billion dollar deficits not long after. We need to learn from the past and wisely prepare for the future. That means addressing our state's obligations and priorities – such as providing for the educational needs of our children under the state Supreme Court's McCleary decision – and also putting money aside in case of future economic downturns.”
