Tax revenue expected to drop, more cuts on the way - Spokane, North Idaho News & Weather KHQ.com

Tax revenue expected to drop, more cuts on the way

OLYMPIA - More budget cuts could be on the way in Washington.  The state's government checkbook is expected to lose another $238 million over the next two years, and Governor Christine Gregoire says state officials will have to find more areas to make cuts.

Thursday, the state Forecast Council released its latest revenue forecast.

The Forecast Council's report shows consumer spending is not strengthening to the degree necessary.  The council says consumer spending is a key engine for Washington state's sales-driven tax system.

The previous revenue drop, in June, punched a $200 million hole in the state budget. That forced Gregoire to order a fresh round of spending cuts.

Governor Gregoire has not specified which departments could face major cuts.
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