The Economic and Revenue Forecast Council convened the morning of November 19th for a sobering task: outlining the depth of our state’s budget crisis. State Economist Dr. Arun Raha characterized the situation as a “revenue-less recovery,” pointing out that, while the recession ended during the second quarter of this fiscal year, consumer confidence & spending are still too weak to adequately bolster our economy. Since sales and Business & Occupation taxes constitute the bulk of our revenue, the economic downturn has left Washington vulnerable.

Forecast estimates include an additional $760 million in revenue loss for the 2009/2011 biennium since Septemember’s forecast, a combination, according to Dr. Raha, of $97 million lost during the last two months alone, and a $663 million loss in projected taxable activity for the remainder of the biennium.

This information comes with only a handful of working weeks left before the state legislature convenes for a supplemental session. What this shortfall – and subsequent forecasts – spell for Evergreen’s budget is uncertain now, and will remain so until early 2010, after the Governor has proposed her supplemental budget. From there, state legislators will work in their respective houses to reach agreement about how the budget will look before the legislative session comes to a close in March.