The Washington State Economic and Revenue Forecast Council has released their November Revenue Forecast.  While this revenue forecast brings some good news, it isn’t as dramatic as the last revenue forecast.  

In June, the revenue forecast showed that the current budget was short by nearly $4.5 billion and the next biennial budget would be short by nearly $4.3 billion for a total of $8.8 billion shortfall over the next three years.  The September forecast brought great news with much higher revenue collections.  The budget shortfall was cut nearly in half and was projected to be $4.4 billion for the remainder of the current biennium combined with the next biennium.  This November forecast cuts that deficit even further with increased revenues for the remainder of the current biennium of approximately $634 million and approximately $328 million for the next biennium.  Combined this reduces the budget shortfall from $4.4 billion to closer to $3.4 billion with $1.9 billion for the remainder of the current biennium and $1.5 billion for the next biennium.  

With the nearly $3 billion that the State has in budget reserves, the budget shortfall is not as problematic as it was in June.  

During the revenue forecast council meeting, David Schumacher, Director, Office of Financial Management, stated that the State still has approximately $200 million in CARES Act money that needs to be spent by the end of the year.  OFM is working with the Fiscal Committee chairs from the House and the Senate to distribute those funds.  Once OFM and the Fiscal chairs agree on where to direct the money, those plans will be sent to the four corners of the State legislature for final approval.

Rep. Ormsby, the chief budget writer for the House, stated that the legislature’s budget would be more dependent on the March revenue forecast.

You can view the revenue report here on the Washington State Economic and Revenue Forecast Council’s website.

Questions?

Contact: 

David Carter | Director, Health Care Finance & Policy

C 360.888.5702