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New economic and revenue forecast released today suggests #@GovInlee and #WaLeg will likely have resources to prevent knee-jerk cuts, and now have opportunity to take action on equitable revenue like a capital gains tax to fund a much-needed state economic recovery package. 1/9
The forecast includes a $634 million projected increase for the current biennium (2019-21) and $328M increase for the 21-23 biennium. This means the legislature can largely avoid knee-jerk cuts by using existing resources in the rainy-day fund. This is good news. 2/9
Improvement is largely driven by a strong real estate market (property tax and real estate excise tax) and cannabis sales. Plus the early federal stimulus had a big impact on bolstering our state’s economy by putting needed cash in the pockets of lower-income households. 3/9
It’s important to note these projections are still well below the February pre-pandemic forecast. Projected revenue is about $2 billion below February projections for this budget cycle and $1.6 billion down for the next two-year budget cycle. 4/9
There is much uncertainty and reason to remain concerned, including rising cases of #COVID19 in WA and across the country. Econ and revenue forecast council chief economist noted there is a 25% chance that revenues could be more than $1 billion lower than this forecast. 5/9
While high-level economic indicators are improving, the growth hasn’t been shared equitably – and won’t be without bold action. We can’t leave those with low or no incomes, BIPOC communities, rural communities, and others behind. 6/9
@GovInslee and #waleg can and must raise progressive revenue to fund a bold economic recovery package, including advancing cash stimulus through a Recovery Rebate/Working Families Tax Credit, boosting investments in child care and public health, and helping small businesses. 7/9
#WaLeg must act to address significant economic hardship, especially among low-income, Black, Latinx, Indigenous, and immigrant households. 400K adults in WA report households without enough to eat. 200K renters are behind on rent. https://www.cbpp.org/research/poverty-and-inequality/tracking-the-covid-19-recessions-effects-on-food-housing-and 8/9
With ongoing lack of federal relief, Washingtonians are counting on @GovInslee and #WaLeg to avert economic hardship, invest in essential workers, and advance public health. @GovInslee and #WaLeg can advance common sense proposals like a capital gains tax to fund this relief. 9/9
