Downbeat outlook persists in WAs final budget forecast of the year

Washington state budget writers announced a slight revenue increase of $105 million, a 0. 1% rise, which offers some respite ahead of the upcoming legislative session starting January 12. House Democrats’ chief budget writer, Timm Ormsby, described the forecast as a “little welcome relief” while acknowledging the challenges that lie ahead. Governor Bob Ferguson plans to release a budget proposal before Christmas, focusing on adjustments to the two-year, $77. 8 billion budget passed earlier.

Despite the positive news, long-term revenue projections show a decline of $66 million through mid-2029. The state’s budget discussions include potential new taxes, such as a wealth tax, but Ferguson remains skeptical about the feasibility of these measures. The recent forecast also highlighted issues like lagging housing permits and employment growth as factors impacting revenue. Senators June Robinson and Ormsby will meet with Ferguson next week to align on budget strategies. The state’s financial outlook continues to raise concerns about the sustainability of core services and necessary investments.