The state Economic and Revenue Forecast Council announced the latest revenue numbers today and their assessment begins with this troubling paragraph:

Revenue collections through August 10, 2011 came in $9.4 million (0.8%) below the June forecast. Cumulatively, collections are $30.8  million (1.3%) below the forecast.  Due to the recent deterioration in national and state economic conditions, the shortfall is likely to increase in the remainder of the year.

This doesn't bode well for the September 15 revenue forecast.

Gov. Chris Gregoire obviously got a heads up on the news. After dealing with a $5.2 billion shortfall last session, making $4.6 billion in cuts for the 2011-2013 biennium, and getting the bad news right after the session that we’re down another $328 million for the biennium, Gregoire announced Monday that all state agencies should identify 10 percent cuts for $1.7 billion.  “Should more bad news happen," she said in an email, "we must be prepared.”