What The Fiscal Cliff Means For Washington State
"We're building a budget assuming everybody works their problems out in the best interest of the nation." That's how Stan Marshburn, outgoing director of Washington State's Office of Financial Management is planning for the fiscal cliff.
He says we're likely to suffer either way. If we go over the cliff, we can expect 50 percent cut to state military spending. To avoid the cliff, federal lawmakers might agree to reduce Medicaid spending -- another precious source of federal money.
Marshburn tells Ross his biggest concern is consumer confidence, since Washington gets so much of its money from sales tax. He says reduced consumer spending could impact Washington's economy 10 times more than the actual fiscal cliff itself.