OLYMPIA — Washington state’s budget picture just got a lot tighter. The latest revenue forecast shows tax collections dropping more than half a billion dollars since June. That includes a $412 million hit to the current two-year budget.
Lawmakers had already passed $4.3 billion in new taxes earlier this year and approved a $77.8 billion budget to fund schools, healthcare, and social services. But now, revenues are expected to fall short at about $74.3 billion.
Chief economist Dave Reich delivered the forecast to the state’s Economic and Revenue Forecast Council, warning of a tough 2025 session ahead. A slowing housing market, weak sales tax revenue, and fewer construction projects are all dragging down the numbers.
Democratic budget writer June Robinson called the outlook “all bad news,” while Republican Ed Orcutt said it proves taxes aren’t the answer and called for deeper cuts. Governor Bob Ferguson said the forecast is disappointing but pledged to protect core services.
Lawmakers return to Olympia in January for the 60-day session. The next forecast is due in November