Projections through 2029 suggest that the state may be facing a $39 million shortfall in Near General Fund revenue from June projections.
The Washington State Economic and Revenue Forecast Council release the estimates on September 27.
“Washington’s Near General Fund revenue is projected to be only minimally changed from the last forecast, with revenue growth anticipated to pick up due to continued employment and personal income growth, and moderating inflation,” said Dave Reich, forecast council executive director.
According to the Washington State Office of Financial Management, the projected collection for the 2023-2025 state budget decreased by $49 million to just below $66.5 billion. This represents a 0.1% decrease from the 2024 forecast.
“We will face significant challenges in meeting all our obligations in our next budget,” noted Pat Sullivan, Office of Financial Management director. “There are some tough fiscal choices ahead.”
The estimates are forecasted by biennium, for which the current forecast ends on June 30, 2025.
The council said the changes are due to reduced sales tax from lower construction.
The forecast is really important because it shows how well the state is doing financially and if it can support state services. It also helps the legislature understand what the state’s budget will be like over the next four years, so they can make sure it’s balanced.
The next forecast will take place on November 20.
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