The state’s latest revenue forecast is a mixed bag and has some observers concerned about what future budget pressures could bring to bear. 

The July revenue forecast from the Washington Office of Financial Management raised projected collections for the current 2025-27 biennium by about $554 million compared with the enacted budget, while lowering projected revenue for the 2027-29 biennium by approximately $461 million, according to a report from the Washington Retail Association. Those changes largely offset each other, keeping the budget balanced for the moment. 

The forecast also expects growth in personal income and employment to slow, paired with weaker-than-anticipated tax collections. One-time revenue sources, such as higher-than-expected capital gains tax collections, are also padding the state’s checkbook. 

“State leaders have said recent tax increases were necessary to address long-term budget needs. However, the latest projections indicate that lawmakers will likely face difficult choices in future budget cycles, including evaluating spending commitments, revenue sources, and the sustainability of current programs,” Washington Retail said in its report.