Washington state close to another quarter-billion in the budget hole

The Associated Press

OLYMPIA — Washington’s government checkbook is expected to lose an additional $238 million over the next two years.

That’s the word this morning from the state Forecast Council. And Gov. Chris Gregoire says more state spending cuts are needed to make up the difference.

The Forecast Council’s report shows continued weakness in consumer spending, which is a key engine for Washington state’s sales-driven tax system.

The previous revenue drop, in June, punched a $200 million hole in the state budget. That forced Gregoire to order a fresh round of spending cuts.