OLYMPIA, Wash. The state’s Economic and Revenue Forecast Council issued a rather glum update on Aug. 11 reflecting both the state and federal economy.
The summary states: The national economic outlook has weakened significantly since our last forecast. There is now an even greater chance of slipping back into recession.
Washington’s economic outlook has also dimmed as consumer confidence has plummeted in the wake of U.S. budget wrangling and renewed European sovereign debt fears.
Washington State revenues reported later in this publication correspond to economic activity in June, and their closeness to the last forecast unfortunately masks how much the economic outlook has weakened since then.
Major General Fund-State (GF-S) revenue collections for the July 11 Aug. 10, 2011 collection period were $9.4 million (0.8%) below the June forecast. Cumulatively, collections are $30.8 million (1.3%) below the forecast. Due to the recent deterioration in national economic conditions, the shortfall is likely to increase in the remainder of the year.
Click on the following link to see a look at the full economic update.