OLYMPIA, Wash – The state of Washington is in worse budget shape than initially thought, according to the new budget forecast issued Tuesday.
The Washington State Economic and Revenue Forecast Council says the state will collect $412 million less than previously projected for the 2025-2027 biennium.
Over the next four years, the state expects to collect $903 million less than initially projected.
“The September forecast continues to expect slower growth in the near-term reflecting a slowing national economy and leading to reduced Washington state revenues from what was expected in June,” said Dave Reich, forecast council executive director.
The council blames weaker revenues from retail and construction, lower state agency revenues and a reduction in real estate excise tax returns.
Governor Ferguson calls the forecast “disappointing, but not surprising” and says the Trump administration is also to blame.
“Unfortunately, we are also grappling with the impacts of President Trump’s Big Betrayal Bill, which includes billions in cuts to Washington state for programs such as Medicaid and food for hungry kids,” Gov. Ferguson said in a statement. “Approximately 28% of our budget consists of federal investments, so these cuts will have adverse impacts for many Washingtonians.”
Gov. Ferguson is preparing his first budget and says he will focus on “delivering a balanced budget that maintains core services to the people of our state.”
Washington Republicans also weighed in, blaming Democrats for not working with them on the budget.
“The state’s financial position would be much better today if our responsible, no-new-taxes approach had been approved,” said Sen. Chris Gildon, a Republican from Puyallup who sits on the Economic and Revenue Forecast Council. “Instead, the majority repeatedly rejected our plan in favor of charging ahead with all those tax and fee increases, using a wildly exaggerated budget shortfall as justification.”
Sen. Gildon says “the financial iceberg ahead is even larger than the new forecast indicates.”
Republicans say Ferguson should call a special session to address the issue.
You can read the revenue forecast here.
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