The Washington Senate Ways and Means Committee has projected a $2.37 billion budget gap under the spending plan proposed by Gov. Christine Gregoire.
The shortfall, which is much wider than what was forecast earlier in the year, reflects a potential recession and new estimates indicating slower growth in tax revenue.
Gregoire’s chief budget writer, Victor Moore, called into question the committee’s methodology and told the Seattle Times that his office will publish its own projections.
State legislators are currently writing a supplemental budget that amends the $33.4 billion two-year budget passed last year. Earlier this year, Democrats had lobbied to set aside $1 billion as a buffer in case of an economic downturn but this figure now may be scaled back.
Republicans say the majority Democrats are spending too much and boosting the state budget deficit. They maintain the committee’s projection shows spending cuts are needed now to avoid deep cuts in the future.
“It’s sobering to realize how quickly the record revenue surplus has vanished, and how the state could budget every penny in reserve this year and still leave a deficit of $1.7 billions,” Sen. Joseph Zarelli, Republican leader on the Senate Ways and Means Committee, said in a statement. “We’d be in a much, much different position now if spending hadn’t been jacked up more than $8 billion in just three years. Our economy is still in good health, but we absolutely have to bring spending back in line with the available revenue. It will be evident soon enough whether the budget writers have come to terms with that.”
The governor’s proposal came in December when revenue projections were better.
