Statement from Rep. Terry Nealey on June 2014 revenue forecast

June 17, 2014

Statement from Rep. Terry Nealey on June 2014 revenue forecast

FOR IMMEDIATE RELEASEJune 17, 2014

CONTACT: John Sattgast, Senior Information Officer/Broadcast Coordinator – (360) 786-7257

Statement from Rep. Terry Nealey on June 2014 revenue forecast

The Washington State Economic and Revenue Forecast Council today released its quarterly revenue forecast for the state. According to Chief Economist Steve Lerch, the General Fund-State net change is an increase of $157 million for the 2013-15 two-year budget cycle compared to the previous forecast in February.

The council also increased its forecast for the 2015-17 biennium by $238 million.

Rep. Terry Nealey, R-Dayton, serves as the House Republican representative on the council. He released the following statement:

“While this forecast is better than the one in February, revenue growth remains modestly flat. That tells me we still have a long road to recovery from the Great Recession. However, I am optimistic that Washington’s economy is heading in the right direction.

“Employers need fiscal and regulatory certainty to feel confident enough to invest in creating new jobs, and the Legislature needs to encourage that job growth, which will lead to more revenue for the state. The Legislature did that during the 2013 and 2014 sessions when a majority of legislators refused to cave in to pressures to increase taxes on employers. It was a good decision and, as a result, our state’s economy continues to grow, adding nearly 22 thousand jobs since February. Still, we can and must do better to reduce unemployment in Washington.

“The demands by the state Supreme Court for the Legislature to meet educational funding requirements under the McCleary decision will likely lead for new calls during the 2015 session to raise taxes. That would be devastating to our state’s economy. The correct course of action is to fund education first within the budget and let the economy heal by resisting job-killing tax increases. If we stay the course, Washington’s citizens will have more job opportunities, our state will reap the benefits of higher revenue, and we will be able to meet our constitutional requirements as it relates to education.”