Evergreen Reporter

Unoffical reports are expecting a $7 billion revenue shortfall in Washington state's operating budget due to the COVID-19 pandemic. 

Before the coronavirus hit, the state's actual receipts for the previous year had increased and were expected to reach $960 million in tax receipts, according to the Washington State Wire. That year there was about a $53.5 billion budget and the state spent about $52.9 billion.

But a $7 million deficit isn't quite what it seems.

"The legislature budgets over two years, but it has to plan for four years. This was an outgrowth of the last recession by Republicans who argued that state spending before the recession created a 'bow wave' of costs that the legislature struggled to contain," according to the Washington State Wire.

This means the actual shortfall is around $3.8 million.

This deficit also didn't hit until March 2020.

Spending money was vetoed by Washington Gov. Jay Islee for the new budget, according to the Washington State Wire. Islee vetoed $445 million to help offset the shortfall. 

But since the budget shortfall will only affect the the second year of a two-year budget, only half of the $52.9 billion spending is impacted by the deficit,  according to the Washington State Wire. This means the $3.8 billion will be affecting about $26.45 billion in spending revenue.

This translates into a 14% deficit.

Washington does have about $3 billion in reserve funds to help with the shortfall if the Legislature chooses to use it, according to the Washington State Wire. But the Legislature likely won't completely empty the account. 

About 60% of the budget is expenditures as well, including money for school, social services and foster care. This money is set aside and difficult to use for other purposes.