Projected state income by 2029 down by $66 million from September forecast

OLYMPIA – Washington’s projected Near General Fund income collections by 2029 decreased by round $66 million from the September 2025 forecast, in keeping with estimates launched right now by the Washington State Economic and Revenue Forecast Council.

The modifications within the forecast are primarily the results of decrease projections of housing permits and employment, offset by a rise in forecasted state funds from the Tobacco Master Settlement Agreement, in keeping with the ERFC.

The forecast is comprised of income estimates for the present biennium (2025–27) which started July 1, 2025, and the following biennium (2027–29). It additionally features a small adjustment for the 2023–25 biennium that ended on June 30.

Projected collections for the 2025–27 state finances are actually $74.5 billion, up about $105 million because the September forecast. This implies that income collections by the tip of the 2025–27 biennium are actually forecast to be round $390 million decrease than when the finances was enacted in May.

Revenue for the 2027–29 biennium is forecast to be round $79.4 billion, which is $185 million decrease 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,” stated Dave Reich, forecast council government 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,” stated Ok.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 income forecast issues

The forecasts for Near General Fund income collections sign the supply of sources for state companies. State regulation requires a finances that’s balanced over 4 years. The Near General Fund accounts for many of that state working finances.

A information to the Washington state finances course of could be discovered on the OFM web site.

Transportation revenues additionally projected

Transportation revenues are $67 million under the September 2025 forecast for the present biennium, in keeping with projections lately launched by the forecast council. Changes are pushed by lower-than-expected gasoline tax collections, fewer automobile and truck registrations, and a slower-than-anticipated rollout of the velocity security digital camera program.

Transportation revenue forecast materials can be found on the ERFC web site.

What’s subsequent

• Governor Bob Ferguson is at the moment growing his 2026 supplemental finances proposal, which will likely be launched in December.
• The subsequent income forecast is required by statute to be accomplished by February 20, 2026. Revenue evaluation conferences are broadcast on TVW, with scheduling particulars obtainable beforehand on the ERFC website.

About the Economic and Revenue Forecast Council

The Economic and Revenue Forecast Council helps statewide objectives by precisely forecasting financial exercise and state tax income for Washington state.  ERFC is comprised of each legislative and government members and the State Treasurer. Four instances a yr the group adopts a bipartisan income forecast that’s then used to construct the state working and transportation budgets. The ERFC can also be charged with offering the state finances outlook to extend transparency and to advertise state authorities monetary stability.

About the Office of Financial Management

The Office of Financial Management offers important data, fiscal companies, and coverage assist that the governor, Legislature, and state businesses have to serve the folks of Washington.