Oregon Public Broadcasting

Washington lawmakers and the governor are bracing for yet another gloomy revenue forecast.

The next quarterly update on the state’s tax collections will be released this Thursday. Already, Governor Chris Gregoire is preparing to make additional budget cuts. Olympia Correspondent Austin Jenkins reports.

Earlier this year, Washington lawmakers closed a projected $9 billion shortfall through the middle of 2011. But if tax collections continue to falter – as expected – a hole will reappear in Washington’s budget.

That’s the scenario Governor Gregoire’s budget office is prepping for.

The Office of Financial Management says the governor might have to ask agencies to find additional savings.

That could include voluntary unpaid furloughs of agency staff.

If declining revenues are steep enough, Gregoire could order across-the-board spending reductions in areas where a deficit is projected.

There’s also the possibility the legislature would have to come back into special session to approve cuts that the governor can’t approve unilaterally. A special session – if it were to happen - would most likely take place this fall.