Wash. revenue drops $760M in latest forecast - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Wash. revenue drops $760M in latest forecast

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OLYMPIA, Wash. (AP) - Washington's state checkbook has lost another $760 million, pushing the state's budget deficit past $2 billion through mid-2011.

Thursday's official revenue forecast sets the table for Gov. Chris Gregoire to write an updated state budget next month.

The Legislature will start working on the problem in January. It's a pretty big problem.

Legislators already cut billions from state spending earlier this year, but they'll have to cut even more, or raise taxes, because state revenue continues to shrink. Gregoire and some top Democratic legislators have said they're open to tax hikes.