email : Webview

The revenue forecast for the current biennium is barely higher ($49 million) than was predicted in June.
The forecast for 2007-2009 is essentially the same as the September estimate, rising by just under $8 million.

Points to consider:

This forecast release does not change the fact that that the state budget faces a structural deficit:

Once the costs of meeting current commitments are added to the baseline budget, 2007-2009 general fund revenue is expected to fall short of budget needs by about $800 million, even assuming no new programs or new investments in current programs.
The state will have about $1.1 billion in carryover from the current biennium to apply to that gap.
In addition, the legislature dedicated over $825 million from the current biennium to special funds (of which about $719 million remains).
Some have referred to this situation as a $1 billion surplus. This is problematic for three reasons:

$719 million of the so-called surplus is dedicated to special funds.
The government cannot continue to rely on carryover from previous years. Our revenue does not grow as fast as our costs.
The budget does not account for the costs associated with upcoming demographic trends, including an aging population and expected school enrollment growth. Nor is it prepared to address growing concerns in the state such as health care, education, and early childhood development.

Definitions:

Biennium: Washington State government operates on a two year budgeting cycle, called a biennium. Each biennium starts on July 1 of an odd number year and ends on June 30, two years later. We are currently in the 2005-2007 biennium. The legislative session that begins in January will budget for the 2007-2009 biennium.
Structural deficit: A structural deficit means the state's revenue structure is not sufficient over the long-term to meet the needs of a growing population.