The Washington State Economic and Revenue Forecast Council released its quarterly revenue forecast this afternoon, which projects where state revenues are potentially heading as state lawmakers get ready to reconvene for the 2023 legislative session in January. In the current 2021-23 biennial budget, forecasters projected revenues to increase by $762 million above their most recent forecast, increasing the budget’s baseline to $63.9 billion. Revenue projections for the 2023-25 biennium were increased by $681 million, strengthening the baseline of the upcoming budget to $66.2 billion.

The shift in the projected growth is likely a result of increased Revenue Act collections, in particular, business and occupation taxes contributing partly to inflation. While the increases are encouraging, state economist Steve Lerch shared that state tax collections are still expected to slow as previously forecasted, just later.

Governor Inslee will now use this budget to craft his 2023-25 biennial budget proposal, which the state Legislature will contemplate when they convene for the 2023 legislative session in January. Another forecast of projected revenues by the Council will be released in March, informing state lawmakers’ budget proposal.