2006 PRESS RELEASES

December 19, 2006

Governor’s Budget Proposal Projects Future Deficits

Updated: 1:05 p.m.

OLYMPIA—Today Governor Christine Gregoire unveiled her 2007-09 budget proposal. The Evergreen Freedom Foundation's Director of Economic Policy, Jason Mercier, offered the following comments:

"It's unfortunate the Governor's budget proposal exceeds the revenue forecast by more than $400 million. This excess spending results in substantial projected deficits for future biennia. We may be losing an opportunity to secure a sustainable state budget since it's unlikely the economy will continue to bail budget writers out."

"Not withstanding the excessive spending, it is very encouraging to see the Governor embrace a constitutionally protected emergency reserve account. The planned spending in excess of the revenue forecast should instead be redirected to savings to head off the future projected deficits."

"Aside from the overspending, we applaud the Governor for committing to secure any increases in the revenue forecast for savings. We agree with her statement that 'it's time to save.'"

2007-09 Proposed Spending Versus Revenue Forecast
(Dollars in Millions)

November Revenue Forecast $29,533.3
Governor's Proposed Spending $29,942.6
Difference <$409.3>

Projected General Fund Ending Balance*
(Dollars in Millions)

2008
2009
2010
2011
2012
2013
$567.7
$344
<$438.5>
<$1,206>
<$1,976.5>
<$2,770>
*As of 1:05 p.m. 12/19/06

Additional Information
2007-09 Balance Sheet
Six Year Budget Outlook

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