Budget forecast: Gov. Inslee will propose $1 billion in tax hikes

OLYMPIA, Wash. (AP) — Washington Gov. Jay Inslee will propose a $1 billion tax package when he releases his new budget.

David Schumacher, director of the Office of Financial Management, told reporters Tuesday Inslee will propose a mix of cuts and revenues to deal with a multi-billion dollar deficit in the state's next two-year spending cycle.

Lawmakers face a projected budget gap of more than $2 billion for the budget ending in mid-2017, in large part due to a new voter-approved initiative to shrink class sizes.

That projected shortfall does not include half of the expected financial obligation needed to increase funding for education as directed by the state Supreme Court, nor does it count the additional amount needed if collective bargaining agreements with state workers are approved.

Inslee will release details of his spending plan next week.