WA lawmakers wrestle with declining tax receipts and looming deficit
A state revenue forecast released Wednesday shows a drop in tax collections, sobering news for Washington state lawmakers and Gov. Jay Inslee, who were already weighing options for spending cuts and raising new revenue to erase a projected $12 billion budget shortfall.
The report presented to the bipartisan Economic and Revenue Forecast Council projects tax collections will be $66.4 billion for the two-year budget that runs through June 30, 2025, a decrease of $89 million from what chief economist David Reich predicted in September.
Looking ahead, Reich estimated the state will take in $310 million less in the next two bienniums which is when Inslee has warned the multi-billion dollar deficit must be dealt with.
Wednesday’s forecast is one of the last pieces of information the outgoing governor will use to write a proposed 2025-27 budget that he will release in mid-December. That spending plan will serve as a template for lawmakers and Gov.-elect Bob Ferguson when they write budgets in the 2025 session.
https://washingtonstatestandard.com/2024/11/20/wa-lawmakers-wrestle-with-declining-tax-receipts-and-looming-deficit/