All bad news WA tax receipts expected to slide further

Washington state anticipates a decline in tax receipts exceeding $500 million, with a forecast revealing a $412 million drop from earlier projections. This situation complicates the upcoming legislative session, as lawmakers face tough decisions regarding budget cuts and possible tax increases. Sen. June Robinson highlighted the difficulties in crafting a supplemental budget plan, while Rep. Ed Orcutt emphasized the urgency for additional spending cuts.

Gov. Bob Ferguson described the projections as disappointing but not surprising, pledging to deliver a balanced budget while maintaining essential services. The state’s operating budget of $77. 8 billion is now underfunded, with revenue only expected to reach $74. 3 billion, despite $4.

3 billion in new taxes approved earlier. Lagging sales and real estate excise taxes are contributing to the revenue decline. Additionally, Comcast is suing to block a new sales tax on advertising services, which was expected to generate $475 million over four years. The overall economic outlook remains concerning, with the labor market and new construction permits showing weak performance.