State revenues expected to grow marginally

Modest increases to the state’s budget are expected in the current and upcoming bienniums, announced the state’s Economic and Revenue Forecast Council during a presentation of their November revenue forecast Monday morning. The current 2023-25 budget is projected to grow by $191 million, a 0.3 percent increase compared to the September forecast while the upcoming 2025-27 budget is projected to grow by $579 million or 0.8 percent.

The Council attributed growth to personal income and employment in Washington, which is slightly higher than forecasted in September. At the national level, the country’s gross domestic product growth is also stronger in 2023 and 2024 than anticipated in the prior forecast. Risks to the forecast included interest rates remaining high, armed conflicts, and slowing consumer demand.

The increase in the 2023-25 budget brings the baseline total to $66.9 billion, while the 2025-27 budget grows to a total of $71.5 billion.

This revenue forecast will inform the governor’s 2024 supplemental budget proposal, set to release next month ahead of the Legislature convening in January.