WA state revenue forecast is down, reflecting expected slowdown in economy

Shauna Sowersby
·2 min read

The updated state revenue forecast for 2023-25 was released by the Washington State Economic and Revenue Forecast Council on Monday, projecting that revenue collections for the state budget, while still increasing, will be $483 million lower than previously projected.

Revenue for the two-year state budget cycle that begins on July 1 is now projected at $65.7 billion, and the Office of Financial Management noted that the projection “represents about a 0.7% drop from the number forecast last November.”

For the following 2025-27 biennium, the council decreased the Near General Fund forecast by $541 million, and now expect revenues of approximately $70.3 billion.

For the current biennium, which began on July 1, 2021, the council increased the Near General Fund forecast by $194 million.

Sen. Christine Rolfes, D-Bainbridge Island, chair of the Senate Ways and Means Committee, said in a statement released following the budget forecast announcement that even though the revenue forecast indicates a slowdown in state economic activity, she is confident that the Senate is still in a strong position to deliver a balanced state budget with significant investments.

“We are focused on supporting our students and teachers, addressing the housing crisis, strengthening our behavioral health system, improving public safety, and taking historic steps to protect our environment,” Rolfes said.

“Washington is the only state in the nation with a requirement to balance its budget over four years, and that strong fiscal governance has made our state more resilient as we face today’s economic uncertainty and stubborn inflationary pressure.”

House Appropriations Chair Rep. Timm Ormsby, D-Spokane, also issued a statement in response to the revenue forecast:

“Today’s forecast shows that our guarded approach was the correct one and now we must take deliberate and careful steps to ensure that our budget decisions protect the most vulnerable,” he wrote. “The operating budget should be responsible and sustainable, but we cannot forget about those most affected, especially low-income communities that suffer disproportionate impacts when budgets fail to invest in the people who need it most. ...”