Projection shows more money coming to Washington than expected as lawmakers prepare budget proposals

OLYMPIA – State budget writers have a bit more money to work with than they initially anticipated.

An updated revenue forecast released on Monday shows Washington is projected to bring in $75.28 billion between July 1, 2025, and June 30, 2027. The projection is an increase of $827 million from the last forecast, which was released in November.

The long-term outlook is also more positive for the state than lawmakers previously thought. According to the forecast, the state will bring in an additional $1.8 billion through June 2029 than previously projected.

The revenue forecasts provide lawmakers with a clearer budget outlook for the state, enabling them to understand the resources available as they draft policy and a budget. The forecast on Monday is the last one lawmakers will receive during the current legislative session.

Dave Reich, Forecast Council executive director, attributed the increased revenue to an improved economic outlook and increased wages and employment.

“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,” Reich said in a statement. “This improved economic picture leads to more economic activity that generates increased revenues for the State of Washington.”

K.D. Chapman-See, director of the Office of Financial Management, said in a statement that the forecast was “positive news in an overall economic landscape that remains complex.”

“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,” Chapman-See said. “But this forecast will hopefully relieve some pressure as the Legislature works to finalize and pass the supplemental budget.”

Budget writers in the House and Senate are expected to unveil their budget proposals next week. State Sen. June Robinson, D-Everett, the chair of the Senate Ways and Means Committee, said Tuesday the forecast “makes our week a little easier.”

Still, Robinson said it’s too early to tell what impact the forecast will have on the state budget.

“There’s still a lot of moving parts in the budget we got from the governor, in terms of reductions to services and use of the BSA,” Robinson said, referring to the budget stabilization account, otherwise known as the state’s rainy day fund.

State Rep. Timm Ormsby, D-Spokane, chair of the House Appropriations Committee, said Monday the forecast “gives us the breathing room we desperately needed as we wrap up our work on our initial budget proposals and continue our efforts to build an adequate tax code that provides for education, child care, health care, and lifesaving services in our state.”