Washington’s projected revenue collections are down, according to the forecast released yesterday by the Washington State Economic and Revenue Forecast Council.
Projected general fund revenue for the current 2023-25 biennium, ending on June 30, 2025, is $66.39 billion, a decrease of $89 million from the September forecast. For the 2025-27 biennium, revenue is projected at $75.43 billion, down $181 million from September, while revenue for the 2027-29 biennium is forecasted at $72.85 billion, a reduction of $131 million. In total, general fund revenue collections over the three biennia are projected to decrease by $401 million since the September forecast.
Forecasted revenue for the Workforce Education Investment Account (WEIA), which funds student financial aid and higher education priorities, has also declined slightly. The account is expected to decrease by $4 million in the current 2023-25 biennium, followed by further declines of $7.6 million in 2025-27 and $9.6 million in 2027-29. Estimated WEIA revenue for the 2025-27 biennium is $944.7 million, and it is projected to reach $1.019 billion in the 2027-29 biennium.
The slowdown in general fund revenue growth is attributed to lower retail sales and business and occupation (B&O) tax forecasts. On a positive note, inflation and interest rates are trending downward, and forecasted collections from real estate excise, property, and liquor taxes have shown slight increases.
With overall revenue collections down, the Legislature is likely to face challenges developing the state budget. By law, the state is required to enact a balanced budget over the next two biennia. Governor Jay Inslee will release his budget proposals in mid-December, which must also balance over the four-year period. His proposals will provide insight into some of the tough decisions the state may need to consider in the development of the final budgets during the upcoming session.
The next revenue forecast will be released in mid-March, during the 2025 legislative session. With session scheduled to end on April 27, legislators will use both the March forecast and this one to inform their final budget decisions.
For more detailed information about the economic and revenue forecast, visit the Washington State Economic and Revenue Forecast Council website.