OLYMPIA, Wash. – Washington’s economy remains essentially flat. That’s the takeaway from Washington’s quarterly revenue forecast out Wednesday. It shows an increase of about a $150 million through the current two-year budget cycle.
That slight uptick in projected revenues is mostly due to legislative policy decisions this year like fund transfers, not the economy. In fact, revenue forecaster Steve Lerch paints a rather dismal picture going forward.
“We are looking at slow economic growth, slow job growth, weak confidence, a great deal of concern about the uncertainties out there.”
Those uncertainties include the European sovereign debt crisis and partisan gridlock in Congress. In forecaster speak, downside risks are elevated.
But there are some bright spots. In Washington, aerospace is doing well and even the housing market is showing signs of life. Bottom line: the latest revenue forecast means lawmakers won’t have to rush back to the Capitol to fix the budget.
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