The Budget

The Economic and Revenue Forecast Council’s preliminary forecast of tax collections has pushed Washington’s projected $8.3 billion budget deficit to historic proportions. Now representing about a quarter of the state budget, the shortfall is higher than any witnessed in modern times and is among the nation’s largest.

Fueled by falling tax collections soured by the national economic recession, the deficit is greater than what the state spends on colleges and universities, prisons, and treatment programs for seniors and the developmentally disabled combined.

The Legislature already has taken steps to cut into the shortfall. Legislation laden with immediate program cuts was signed into law this week. And the federal economic recovery package recently signed into law will provide hundreds of millions in short term help.

But it’s no bailout. And as legislative leaders begin budget talks in earnest they’ll be forced to consider spending cuts that would decimate programs for the most vulnerable, gut the state’s colleges and universities and even roll back funding for the state’s K-12 education system.

 

Here's what you need to know:

This is a crisis of historic proportions.
See how it compares

It will take more than just budget cuts to solve the shortfall.
See what can and can't be cut

Cutting costs doesn’t always save money. In many cases, cutting programs can cost far more in other areas than the theoretical savings.
See how short-term savings can trigger long-term costs

The federal stimulus program, as important as it is, will not solve Washington’s economic crisis.
See how state and federal solutions must go hand in hand.

There are a number of misconceptions about what caused the economic crisis and what can be done to solve it.
See what's real, what isn't