Will Revenue Dip Lead to Special Session?

It's too soon to tell. But yesterday's collections report increased the likelihood that lawmakers will have to make further budget adjustments. The News Tribune reports that the governor is worried.

Gov. Chris Gregoire fears legislators might need to come back to Olympia later this year to adjust the 2009-11 budget to meet expected further drops in state revenues.

“I don’t know if we can get through to next January,” Gregoire told The News Tribune editorial board on Monday.

I'd guess things would have to get a lot worse before that happens. But legislators and the governor will continue to face tough budget decisions in 2010 and beyond, as she acknowledged in her ed board meeting.

Anyone familiar with this budget will tell that ... in two years there is potential for an even more challenging budget,” she said.

For starters and not even considering future loss of federal dollars, Gregoire said, there is “$4.5 billion of one-time spending that is going to hit us in two years.” The majority of that spending is in federal stimulus money that will go away by then.

That's not news. But it's good to see that the governor is already considering her options.

Deirdre Gregg reports on the shortfall in the Puget Sound Business Journal, noting

Gov. Chris Gregoire has not signed the final operating budget bill yet, and she could look for ways to make some additional cuts.

And Joe Turner writes on his TNT blog that lawmakers softened up on some cuts after deciding not to run a tax package to the ballot.