Washington Adopts June Revenue Forecast: Growth Continues, But Deficit Looms
On June 24, the Washington State Economic and Revenue Forecast Council adopted the June Revenue Forecast, which includes key updates for the state’s fiscal outlook.
- 2023–25 Biennium (ending June 30): Revenues are projected to increase by $692.3 million.
- 2025–27 Biennium (starting July 1): Revenues are forecasted to rise by $3.8 billion, which includes $490 million in new tax revenues passed during the 2025 legislative session. Without those increases, the revenue projection would have been lower.
- 2027–29 Biennium: Revenues are expected to grow by another $3.6 billion.
Despite strong revenue growth, the state’s General Fund is projected to run a deficit of $720 million in the 2025–27 biennium. Key factors influencing the forecast include:
- A weaker-than-expected U.S. economy
- Rising tariffs and retaliatory trade measures
- The Israel-Iran conflict
- Federal shifts in employment and spending
Here is Governor Ferguson’s statement on the forecast. He does not anticipate calling a special session of the legislature at this time, but the developments from the federal government may force revisiting the question. He is calling for state agencies to look for additional savings. For providers, it will be crucial to ensure that legislators understand the importance of sustainable long-term care funding and the scheduled rates rebases in July 2026. Contact Lauri St. Ours for additional information.
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