All bad news WA tax receipts expected to slide further

Washington state's tax collections are projected to decline by over $500 million, complicating budget planning as the January legislative session approaches. Chief economist Dave Reich's report revealed a $412 million drop from previous forecasts, intensifying budget challenges for lawmakers. Senator June Robinson stated that this situation makes it more difficult to formulate a supplemental budget plan, while Republican Representative Ed Orcutt called for additional spending cuts. Governor Bob Ferguson described the new projections as disappointing but not surprising, pledging to deliver a balanced budget that preserves essential services. The state's operating budget, which amounts to $77.

8 billion, is now expected to generate only $74. 3 billion in revenue, even with the recent tax hikes adding $4. 3 billion. Declining sales and real estate excise taxes contribute significantly to this revenue shortfall. Additionally, Comcast's lawsuit against a new advertising sales tax could further hinder expected revenue.

The effects of recent federal cuts to social services remain an unaddressed concern in the budget forecast.