State revenue projection increases $327M

OLYMPIA – Washington state’s financial prospects are a little brighter than anticipated, according to a statement from the Washington State Economic and Revenue Forecast Council.

Washington’s projected Near General Fund revenue collections for the 2023–25 state budget have increased by nearly $327 million, the statement said.

“Capital gains revenue collections have been stronger than expected and the forecast has been revised up to reflect that,” Steve Lerch, executive director of the Economic and Revenue Forecast Council, wrote in the statement. “However, the large number of estimated capital gains tax returns means that final collections from this source remain uncertain. Otherwise, relatively small changes in the economic forecast have given rise to small adjustments in the revenue forecast.”

Total Near General Fund revenues are now projected at $66 billion for the next two-year state budget cycle, which begins July 1, according to the statement.

“The early capital gains revenue projections are encouraging, but we’ll have to wait until fall when final returns are due to have more certainty about actual collections,” wrote OFM Director David Schumacher in the statement.

The council also increased the Near General Fund forecast for the following biennium (2025–27) by about $147 million, the statement said. with total expected revenues of nearly $70.5 billion.

The council meanwhile increased the Near General Fund forecast for the remainder of the current biennium (2021–23) by about $341 million. The council projects Near General Fund revenues will total nearly $64.5 billion for the biennium, which began July 1, 2021, and ends June 30, 2023.