Projections through 2029 indicate the state could face a $39 million shortfall in Near General Fund revenues, according to the June projections.
The Washington State Economic and Revenue Forecast Council will release the estimates on September 27.
“Washington Near General Fund revenues are expected to deviate only minimally from the previous forecast, with revenue growth expected to pick up due to continued employment and personal income growth, and moderating inflation,” Dave said Reich, executive director of the forecasting board.
Projected collections for the 2023-2025 state budget fell by $49 million to just under $66.5 billion, according to the Washington State Office of Financial Management. This represents a decrease of 0.1% compared to the forecast for 2024.
“We will face significant challenges in meeting all of our commitments in our next budget,” said Pat Sullivan, director of the Office of Financial Management. “We have some tough budget choices ahead of us.”
The estimates are forecast every two years, with the current forecast ending on June 30, 2025.
The city said the changes are due to lower sales taxes due to lower construction.
The forecast is very important because it shows how well the state is doing financially and whether it can support state services. It also helps the legislature understand what the state budget will look like over the next four years so they can ensure it is balanced.
The next prediction takes place on November 20.
