Washington State Revenue Review

Washington State Revenue Review

The Economic and Revenue Forecast Council published their September Revenue Review Wednesday.  Due to an increase in tax collections across several sectors, the projected $8.8 billion budget shortfall through 2023 has been cut in half.  The new projected shortfall has dropped to approximately $4.2 billion.  The shortfall for the current 2019-2021 state operating budget is approximately $2.3 billion.

While this is good news, and the increased revenues will help offset some of the proposed cuts, the budget still has a shortfall.  We are waiting to learn how this improved revenue forecast will impact the proposed decision package released last week. Budget details may not be known until we see the Governor’s proposed supplemental operating budget late October or early November, assuming a special session is called.  If no special session is called, both the Governor’s supplemental budget through end of current fiscal year and his biennial 21/23 operating budget budget would be released in late December.  

To help offset any coming cuts to client eligibility or provider Medicaid rates, the legislature can certainly rely on the additional increased revenue and the nearly $3 billion in state budget reserves, also known as the “rainy day fund”.  Of course any additional congressional funding relief to states would be welcome and should blunt cuts to long term services and supports.

You can view the Revenue Review here.

 

Questions?

Contact: 

David Carter | Director, Health Care Finance & Policy

C 360.888.5702