OLYMPIA — Washington is projected to collect $762 million more in revenue in the current two-year budget period than projected last quarter, according to figures released Friday by the Economic and Revenue Forecast Council.
In the upcoming two-year budget cycle, spanning mid-2023 to mid-2025, Washington is expected to see $681 million more than previously projected. Gov. Jay Inslee will release his budget proposal for that time frame in December.
The news comes amid economic uncertainty, including recent layoffs in the tech sector.
Despite the boost in projected revenue, the state will “still face budget challenges due to dramatically increased costs related to inflation and other factors,” said David Schumacher, director of the Office of Financial Management.
“Today’s numbers represent a bit of a rebound but aren’t cause for celebration, because we all see the news about layoffs and are continuing to pay high costs for gas, heat, food and housing,” said Sen. Lynda Wilson, R-Vancouver, a member of the council, in a statement Friday. “Our state could be just one negative forecast away from a collision course with a financial iceberg — and a shortfall would mean painful spending cuts, painful tax increases or both.”