Yesterday the state Economic and Revenue Forecast Council released its June quarterly forecast. This was the first forecast made under the direction of Dr. Steve Lerch, Interim Director of the Council.

Our state government seems to be in good shape, revenue is forecasted to decrease from projections by about 223.9 million dollars, but the ending fund balance plus reserves are at about 801.4 million dollars.

Our economy is expected to grow over the 2007 through 2009 cycle at slightly less than 3% per year. While not tremendous numbers, 3% is certainly a reasonable level of growth, and this shows that our state economy remains fundamentally strong despite a more dismal outlook nationwide.

Our economy is forecast to do even better in the 2009 through 2011 cycle with about a 4% growth rate per year projected.

The forecast projects that the housing market will rebound in the third quarter of this year and foreclosures in Washington remain substantially lower than the national average. Population growth is expected to continue driving up the demand for housing.

Beyond Washington’s borders, the national economy is generally weak; our unique mix of industries and trade is protecting us from the nationwide downturn.

Washington consumers have started saving more of their money, which is fundamentally important to future economic growth.

There is no recession projected for Washington State between now and 2012.