Lawmaker calls economic projections a bump in the road

February 17, 2016

A ranking member of the House Finance Committee says now is not the time for a knee-jerk reaction, following a new economic forecast showing state revenues are on the decline.  Ruth Johnson reports from Olympia.

Nealey:  “My advice to my colleagues here, is that we just be steady and keep an eye on this.”

Johnson:  Republican Representative Terry Nealey, reacting to news that the economy is slowing in Washington state, something he says is no surprise.

Member: “A 67 million dollar projection being down is a very, very small amount, less than one percent.

Johnson:  Nealey, who sits on the Washington State Economic and Revenue Forecast Council, says this is no time for a knee-jerk reaction.

Nealey:  No.  We just need to continue with what we're working with now, the programs in our state, just not add to the expense, and hang on, and we'll be ok.”

Johnson: A decrease in exports to China and reductions in the price of oil both play a role in the projected revenue decline.  Nealey is cautioning lawmakers: this is not the time to add taxes. “We want to hold the line,” he says, “and don't do anything drastic.”  In the end, said the lawmaker, “This is a bump in the road.”

Ruth Johnson, Olympia.