Downbeat outlook persists in WAs final budget forecast of the year

Washington state's budget forecast reveals a $105 million increase in revenue for the current two-year period, marking a welcome shift from earlier projections showing significant declines. Chief budget writer Timm Ormsby called this news a “little welcome relief,” while emphasizing the tough decisions ahead for lawmakers. Governor Bob Ferguson will present a revised budget plan before Christmas, seeking to balance core services with necessary investments. Despite the positive forecast, long-term estimates indicate a potential revenue decline of $66 million by mid-2029, raising concerns about the sustainability of current funding levels. The state has recently implemented new taxes and spending cuts to address a budget shortfall estimated between $12 billion to $16 billion.

Ferguson's skepticism towards new taxes complicates discussions about additional revenue sources, including a proposed wealth tax. Senate Democrats have already advised colleagues against pursuing earmarks due to financial constraints. As the legislative session approaches, budget discussions will intensify, focusing on the state’s fiscal health.