State again reports decline in revenue

The Olympian

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Washington state’s budget picture continues to darken, according to the latest report that showed $52.8 million less revenue than expected for October.

Overall, receipts from sales tax and other major revenue sources were 5.6 percent below last year, according to the Economic and Revenue Forecast Council report. Tax payments from retail stores in particular were down 8.6 percent.

The figures confirm a trend that in September led the state Senate budget staff to predict a $3.2 bill- ion shortfall in the next two-year budget.

Looking to save costs, Gov. Chris Gregoire has already ordered a state hiring freeze and 1 percent budget cuts across the board for agencies.

The latest monthly figures reinforce expectations that the revenue forecast, due Wednesday, will show a wider budget gap.

Among the negatives from the latest report, which covers Oct. 11 to Monday:

• Taxes from vehicle dealers were down 21 percent from last year.

• Stores selling furniture, building materials and garden supplies were down 12 percent in tax receipts.

• October real estate excise taxes were down 41 percent.

For September, the average value of real estate transactions was down 20 percent, and the number of transactions was down 13 percent.

There was some growth, however. Sales-tax income from convenience stores was up 5 percent from last year, and drugstore receipts increased by 4 percent.

Income from licensing fees also topped expectations by $94,000.