OLYMPIA – Washington’s projected Near General Fund revenue collections through 2029 increased by more than $1.8 billion from the November 2025 forecast, according to estimates released today by the Washington State Economic and Revenue Forecast Council.

The changes in the forecast are primarily the result of an improved economic outlook since the November forecast, as well as higher personal income and employment, according to the ERFC.  Despite a slight decrease in housing construction, real estate excise tax collection came in slightly higher than expected.

The forecast is comprised of revenue estimates for the current biennium (2025–27) which began July 1, 2025, the next biennium (2027–29), and the subsequent biennium (2029–31).

Biennium  Forecast revenue  Change from Nov. forecast  % change 
2025–27 (current)  $75.28B  $827M  1.1% 
2027–29  $80.38B  $1.028B 1.3% 
2029–31  $86.57B  N/A  N/A 
Total    $1.855B  

 

Projected collections for the 2025–27 state budget are now $75.3 billion, up about $827 million since the November forecast. This means that revenue collections by the end of the 2025–27 biennium are now forecast to be $438 million higher than the revenue projection used when the current budget was enacted in May 2025, excluding 2025 tax law changes.

Revenue for the 2027–29 biennium is forecast to be nearly $80.4 billion, which is about $1 billion higher than projections in November.

The forecast council also made revenue projections for the 2029–31 biennium, which are forecast to be $86.6 billion.

Quotes 

“Washington’s revenue outlook has improved as the forecast for both the U.S. and Washington economies calls for slightly stronger growth, and higher personal income in Washington,” said Dave Reich, forecast council executive director. “This improved economic picture leads to more economic activity that generates increased revenues for the State of Washington.”

“The improved revenue forecast is positive news in an overall economic landscape that remains complex,” said K.D. Chapman-See, director of the Office of Financial Management. “We are still in a challenging period as costs to maintain current state service levels are increasing, as are caseloads for essential programs families rely on. But this forecast will hopefully relieve some pressure as the Legislature works to finalize and pass the supplemental budget.”

Why the revenue forecast matters 

The forecasts for Near General Fund revenue collections signal the availability of resources for state services, and account for most of the state operating budget. 

A guide to the Washington state budget process can be found on the OFM website. 

What’s next 

  • The transportation revenue forecast will take place on Feb. 18, 2026, and will be available on the ERFC website. 
  • Legislative budget writers are expected to release their supplemental budget proposals during the week of Feb. 23, 2026, which will be posted to fiscal.wa.gov.  
  • Legislative session is scheduled to adjourn on March 12, 2026. 
  • The next forecast for Near General Fund revenue is expected in June 2026. 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 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 and transportation budgets. 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.