There’s room for “cautious optimism”

“There is some room for cautious optimism, but we expect to have greater clarity by our next forecast in September,” Raha said.

Sen. Joe Zarelli: “The difference in personal income growth and revenue … Can you comment on historically over the last 8 to 10 years, a lot of that consumer spending has been based in debt … How surely should we look at that as a part of the optimistic part of the future?”

Raha said he thinks people will spend the way their parents did. That means that, while we’re saving more now, he thinks we’ll go back to the days of spending more.

The revenue forecast was approved.

Here’s the updated forecast compared to March, fiscal year summary tables, and calendar year tables.

The long and short of it: This biennium, which ends in about two weeks, will end with a positive balance. But next biennium, if no changes are made from today, the state will be cutting it close said Victor Moore of Gov. Chris Gregoire’s office.

Tags: Revenue forecast