OLYMPIA, Wash. - Washington state's tax collections are down again, swelling the budget deficit and raising the possibility of a special legislative session.
Thursday's revenue forecast shows a big drop in expected tax income for the state over the next two years.
That adds about $385 million to the hole in the current year's budget, which runs through June 2011.
The forecast also says Washington will collect about $810 million less than previously hoped for the next state budget, which lawmakers will write in the 2011 legislative session.
“We are essentially in unchartered territory,” said Chief Budget Forecaster Dr. Arun Raha who said the economy is recovering much slower than in past recessions.
Gov. Chris Gregoire already ordered spending cuts to address the problem, but it won't be enough to fill the new gap.
Brown said Governor Chris Gregoire has asked the leaders of the House and Senate to come up with possible solutions by November 29th.
The Governor may reconvene legislators for a special session before the end of the year.
“It’s a huge problem,” said Brown, “It means very quick action by legislatures to get this done.”
The 2011-2013 deficit is now pegged at about $5.7 billion, out of a roughly $33 billion general fund budget.
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