Washington State Budget Deficit $520M, Spending Cuts On The Way - Spokane, North Idaho News & Weather KHQ.com

Washington State Budget Deficit $520M, Spending Cuts On The Way

OLYMPIA, Wash. (AP) - Low tax collections are driving a new state budget deficit of about $520 million and that will lead to spending cuts of about 6.3 percent.

That's the word from Thursday's state revenue forecast. Lawmakers and Gov. Chris Gregoire use the updated numbers to make decisions about the budget, which has been chronically out of balance following the recession.

The Democrat-led Legislature fixed a major deficit earlier this year. But the economy is still not recovering very fast, leading to the new hole in the current two-year budget.

Gregoire has already lined up across-the-board spending cuts to bring the budget back into the black. They'll hit most areas of state government. Overall, the state general fund is worth about $28.5 billion over two years.
      
      (Copyright 2010 by The Associated Press.  All Rights Reserved.)
   

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