OLYMPIA – Washington’s projected Near General Fund revenue collections through 2029 decreased by around $66 million from the September 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 lower projections of housing permits and employment, offset by an increase in forecasted state payments from the Tobacco Master Settlement Agreement, according to the ERFC.

The forecast is comprised of revenue estimates for the current biennium (2025–27) which began July 1, 2025, and the next biennium (2027–29). It also includes a small adjustment for the 2023–25 biennium that ended on June 30.

Biennium Forecast revenue Change from Sept. forecast % change
2023–25 $67.14B $13M 0.0%
2025–27 (current) $74.45B $105M 0.1%
2027–29 $79.35B -$185M -0.2%
Total   -$66M  

Projected collections for the 2025–27 state budget are now $74.5 billion, up about $105 million since the September forecast. This means that revenue collections by the end of the 2025–27 biennium are now forecast to be around $390 million lower than when the budget was enacted in May.

Revenue for the 2027–29 biennium is forecast to be around $79.4 billion, which is $185 million lower than projections in September.

Quotes

“The November economic forecast reflects fewer housing permits, lower employment and slower personal income growth leading to lower forecasts for many revenues,” said Dave Reich, forecast council executive director. “However, stronger recent actuals and other factors mean revenues are forecast to be very slightly higher in the current biennium.”

“This is a relatively small adjustment to our expected revenues, given the broader uncertainty in the economy,” said K.D. Chapman-See, director of the Office of Financial Management. “We’re still seeing rising caseloads and higher costs to maintain services at current levels and are responding to those as we help develop Governor Ferguson’s supplemental budget proposal.”

Why the revenue forecast matters

The forecasts for Near General Fund revenue collections signal the availability of resources for state services. State law requires a budget that is balanced over four years. The Near General Fund accounts for most of that state operating budget.

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

Transportation revenues also projected

Transportation revenues are $67 million below the September 2025 forecast for the current biennium, according to projections recently released by the forecast council. Changes are driven by lower-than-expected fuel tax collections, fewer vehicle and truck registrations, and a slower-than-anticipated rollout of the speed safety camera program.

Transportation revenue forecast materials are available on the ERFC website.

What’s next

  • Governor Bob Ferguson is currently developing his 2026 supplemental budget proposal, which will be released in December.
  • The next revenue forecast is required by statute to be completed by February 20, 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.