OLYMPIA, WA (MyBellinghamNow.com) – State leaders are reacting to a dramatic drop in Washington’s projected tax revenue over the next four years.
The state Economic and Revenue Forecast Council has released its latest projection for Near General Fund revenue through 2029.
It revealed a roughly $900 million decrease in the state’s projected revenue from the previous forecast in June, representing a six-tenths of one percent decline.
“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.
According to the council, the drop is mostly due to weaker taxable sales in retail and construction, lower state agency revenues and reduced real estate excise tax returns.
The Near General Fund accounts for most of the state operating budget, which funds public schools, social services and much more.
Governor Bob Ferguson lamented the updated projections, calling it “disappointing, but not surprising.”
“For some time, my budget team has been preparing for a challenging revenue forecast. Today’s forecast is disappointing but not surprising,” Ferguson said.
The state’s next revenue forecast will come in mid-November.
