budget deficit

The state's projected budget deficit, which had been one of the major issues pushed by Republican Dino Rossi in this year's gubernatorial campaign, is back in the news today as the state's economic and revenue forecast council announced even more declining state revenues.

Because of a projected drop in consumer spending, state revenues are expected to only grow by five percent in the next biennium, compared with the 8 percent projected earlier.

This means that the projected deficit, which had stood at $3.2 billion has now grown to a little over $5 billion.

Republicans have continually gone after Gov. Chris Gregoire on the state budget this campaign season, and with yesterday's report showing another $529 million adding on to the projected $2.7 billion budget deficit, they are at it again.

They mainly hype the fact that Gregoire has said in the past that projections do not concern her as much as the present deficit because of the shifting tides of the state's forecasts. That does not concern gubernatorial candidate Dino Rossi, however, disagrees. He issued a statement yesterday on the projected deficit.

Gregoire, however, acknowledged today in the Seattle Times that she is preparing for the deficit, but says the fault lies with the national economic scene.

Gov. Chris Gregoire held a press availability today in Olympia open to the state press corps. She spoke about the Seattle Sonics' departure to Oklahoma City, the state's projected budget deficit and the negative campaigning so far in the gubernatorial race against Republican Dino Rossi. The Tri-City Herald's Chris Mulick has a recap of the events here.

On the Sonics, Gregoire called the notion that she was to blame for them leaving "laughable". She also wished to wait until her own Office of Financial Management analyzes the budget until anyone began to panic about the potential $2.7 Billion deficit, and called the campaign "ugly" so far.