State revenue projection for 2023–25 increased by $191 million; 2025–27 up by $579 million
OLYMPIA – Washington’s projected Near General Fund revenue collections for the 2023–25 state budget have increased by $191 million to around $66.9 billion — about a 0.3% increase from the September 2023 projection, according to estimates released today by the Washington State Economic and Revenue Forecast Council.
This forecast also estimates the Near General Fund revenue for the following biennium (2025–27) at around $71.5 billion, an increase of $579 million, or 0.8%, from the September forecast. This brings the total increase in the forecast over the four-year period to around $770 million.
“Revenue collections remain steady, but we have seen personal income forecasts improving later in the forecast period as well as stronger total employment and construction employment forecasts,” noted Dr. Steve Lerch, executive director of the Economic and Revenue Forecast Council. “These changes have resulted in slight modifications for the November forecast.”
Why it matters
The forecasts for Near General Fund revenue collections are critical, signifying the state’s fiscal health and impacting the allocation of resources across various state services. The Near General Fund accounts for most of the state operating budget. The Legislature is required by law to enact an operating budget that is balanced over four years.
Next month, Gov. Inslee will unveil his 2024 supplemental budget to propose adjustments to the 2023-25 budget enacted earlier this year.
The next revenue forecast is required by statute to be completed by February 20, likely during the state legislative session. Revenue review meetings are broadcast on TVW, with scheduling details available beforehand on the ERFC website.
About the Economic and Revenue Forecast Council
The Economic and Revenue Forecast Council (ERFC) supports statewide goals by accurately forecasting economic activity and state tax revenue for Washington State. ERFC is comprised of both legislative and executive members and the State Treasurer. Four times a year the organization adopts a bipartisan revenue forecast that is then used to build the state operating budget. The ERFC is also charged with providing the state budget outlook to increase transparency and to promote state government financial stability.
About the Office of Financial Management
The Office of Financial Management provides vital information, fiscal services and policy support that the governor, Legislature and state agencies need to serve the people of Washington.