Date: February 16, 2012
Subject: February Washington State Revenue Forecast up by $95.7 Million
Adjusted Revenue Estimates Revised Slightly Upward but Deficit Remains
On Thursday, February 16, the Washington State Economic and Revenue Forecast Council (ERFC) released its quarterly
update of State General Fund Revenues. The forecast was very similar to November's forecast with expected revenue
for the 201113 biennium up about $95.7 million ($45 million from better than expected revenues, the rest resulting
from legislation passed in December), keeping the total expected revenue at about $30.3 billion. Additionally, state
revenue for the 201315 biennium is forecast to be $32.3 billion, an increase of 6.6 percent from the current biennium.
Steve Lurch, executive director of ERFC, pointed to strong external risk factors that could further slow economic
recovery and state revenue, including Europe's economic trouble, a potential slowdown in Asia, and continued political
gridlock and uncertainty in the US. Nationally, although there have been some signs of slow recovery, including Real
GDP growth, the housing industry remains weak, unemployment high and consumer confidence shaky. All of these
continue to indicate a likely prolonged struggle for economic recovery nationally.
In Washington State, the economy continues to outperform the nation by a bit, buoyed mostly by growth in the