The most recent report from the Washington State Caseload Forecast Council lowered expected costs in this budget by $200 million -- helping to alleviate what was a roughly $1.5 billion shortfall in the budget.

Although the news was welcome, reports from the Economic and Revenue Forecast Council typically have a larger impact on the state budget. The next revenue forecast is scheduled for Feb. 16.

After reducing the state’s shortfall by about half a billion dollars in the recent special session, the Senate has been working to find a solution to the remaining shortfall, as well as rebuild a reserve.

Sen. Ed Murray, Chair of the Senate Ways & Means Committee, has suggested a series of new revenues to support state services, including an increase in the state sales tax that would be replaced by a capital gains tax on profits from the sales of taxes, bonds and real estate (with an exemption for homeowners).