The Washington State Economic and Revenue Forecast Council released their June quarterly report today showing significantly improved revenue collections. The state’s General Fund revenue for the current 2019-21 biennium ending on June 30 is forecasted to increase by more than $1.3 billion with revenues totaling $52.3 billion. If projections actualize, the state will have a surplus of nearly $3 billion – including Rainy Day reserves – at the end of the biennium.
This is a stunning rebound from this time last year when the state’s revenue collections plummeted due to the impacts of COVID-19. The 2020 June quarterly report forecasted revenue collections for the current biennium (2019-21) to decrease by nearly $4.5 billion leaving the state with a $1.4 billion shortfall at the end of the biennium.
The council also projects revenue collections for the upcoming 2021-23 biennium starting July 1 will increase by more than $1.9 billion with total revenue estimated at $56.6 billion.
Washington state employment numbers have seen a slight improvement with employment rising 37,300 over the last three months but remain 200,000 lower than in February 2020. Washington’s unemployment rate has decreased significantly to 5.3 percent from the all-time high of 16.3 percent in April 2020.
Overall, the state economy is still feeling the impacts of the pandemic but is moving in a positive direction with year-over-year growth expected to remain high. For more information, view the Economic Revenue and Forecast Council forecast reports here.