OLYMPIA — Washington state’s revenue forecast has been revised downward by $66 million through 2029, driven by slower job growth and fewer housing permits, according to the Office of Financial Management.
Officials say the drop is relatively minor and is balanced by a $66 million payment from a long-term tobacco settlement with Philip Morris, part of a multibillion-dollar agreement dating back nearly 30 years.
State economists expect little to no employment growth in 2026, followed by only modest gains in the years after. Broader economic uncertainty remains due to factors such as global conflicts and trade issues.
A $720 million budget shortfall had already been projected over the next four years. Governor Bob Ferguson is expected to release a supplemental budget proposal next month to address rising caseloads and increased costs to maintain services.
The next revenue forecast is due by February 20.