State revenues tumble nearly $500 million but WA lawmakers aren't fretting

A state revenue forecast released Wednesday shows collections will be nearly $500 million less than lawmakers counted on earlier this year, driven largely by a tumble in capital gains tax receipts and less consumer spending.

Washington’s economy is projected to generate $66.5 billion for the budget cycle that runs through June 30, 2025. That’s down $477 million from the February forecast lawmakers and Gov. Jay Inslee relied on to pay for new spending.

In the coming months, reserves may be needed to fill funding gaps until the Legislature and next governor craft spending plans in the 2025 session.

“This will require no drastic changes,” said David Schumacher, director of the Office of Financial Management and Inslee’s budget director. It’s a “modest amount” and there’s $2.4 billion in reserves, he noted.

https://washingtonstatestandard.com/2024/06/26/state-revenues-tumble-nearly-500-million-but-wa-lawmakers-arent-fretting/