Revenue forecast shows WA lawmakers will have more money to work with

According to figures released Monday, Washington’s projected tax revenue is up $1.8 billion through 2029. The current two-year budget is now expected to bring in $75.3 billion, an increase of about $827 million compared with the November forecast.

WA economists point to stronger growth, tariff-driven spending

Dave Reich, executive director of the state Economic and Revenue Forecast Council, said part of the early‑2025 boost came from residents accelerating purchases ahead of new tariffs. He also pointed to new taxes approved by the Legislature as another factor driving the higher revenue outlook.

“Washington’s revenue outlook has improved as the forecast for both the U.S. and Washington economies calls for slightly stronger growth and higher personal income in Washington,” Reich said. “This improved economic picture leads to more economic activity that generates increased revenues for the State of Washington.”

“The improved revenue forecast is positive news in an overall economic landscape that remains complex,” said K.D. Chapman-See, director of the Office of Financial Management. “We are still in a challenging period as costs to maintain current state service levels are increasing, as are caseloads for essential programs families rely on. But this forecast will hopefully relieve some pressure as the Legislature works to finalize and pass the supplemental budget.”

The state transportation revenue forecast will happen on Feb. 18.

Meanwhile, legislative budget writers are expected to release their supplemental budget proposals next week.

The current legislative session ends on March 12.

Frank Lenzi is the News Director for KIRO Newsradio. Read more of his stories here.