$435 MM in Federal Money Makes New Taxes Unnecessary

That's a reasonable interpretation of the news that the Obama administration called Gov. Gregoire to tell her to book $435 MM in additional Medicaid funding. In the Everett Herald, Jerry Cornfield has the governor's reaction.

"It's what we've been waiting to hear," she said. "I am now convinced that we will be getting that Medicaid money. I feel now we should be able to assume with confidence that money will come."

....She said she'll subtract the $435 million from her [$780 million]  target. 

That's the amount she'd plugged in for new taxes in her Book 2 budget. And, she's still hoping for more federal money, Cornfield writes.

Gregoire is still hoping the feds will provide funds to cover the cost of the state's Basic Health Plan as well as money for keeping teachers and cops employed.

In the Seattle Times, Andrew Garber notes that the next revenue and caseload forecasts will affect the governor's intent to use the federal money to reduce her tax ask.

One caveat, she said, is whether the budget shortfall will grow when the new revenue and caseload forecasts come out next week. Those projections will tell lawmakers if tax collections are on target, or if they've dropped and created a bigger budget hole. They'll also show if the state's health-care costs have increased faster than projected.

Some good news, at least for now. It's welcome