The state’s Economic and Revenue Forecast Council on Friday produced state revenue projections that are almost unchanged from their June report.
The new forecast shows a decline of $49 million during the current two-year budget cycle that ends June 30 and an increase of $79 million in the next cycle that begins July 1. Those are miniscule changes in a budget expected to exceed $71.6 billion in the 2025-27 biennium. Among the puts and takes found in the report include lower sales taxes being offset by higher real estate excise and business and occupation taxes.
Looking ahead, interest rate cuts and improved consumer spending could brighten the state’s financial picture, though downside risks include an extended labor dispute at Boeing and the possible repeal of the state’s capital gains tax.
The council will produce another forecast Nov. 20 that will be used by the governor to produce his proposed operating budget a month later.