State budget outlook: $492 million shortfall
A new budget outlook for state government shows red ink to the tune of $492 million by June 2015 – if teachers get pay raises, public employees see an end to pay cuts, and health care costs keep rising. The outlook, produced by Gov. Chris Gregoire’s budget office, assumes $1.5 billion in increased revenues in the next biennium. The shortfall would be even deeper – more than $1 billion – if the state’s rainy day fund, or Budget Stabilization Account, is not tapped. State budget director Marty Brown said there were no surprises in the preliminary numbers, which will be followed by a more refined look in November.