Revenue forecast slightly improves state budget outlook
The state’s quarterly revenue forecast adopted by the Washington State Economic and Revenue Forecast Council on November 18th projects a $634 million increase in state revenues for the 2019- 21 biennium and a $328 million increase for the 2021-23 biennium compared to the September 2020 forecast.
Despite the improvement, state revenues are still projected to be more than $3.3 billion below the pre-pandemic projection for the two biennia. If the shortfall remains, state legislators will need to balance the state operating budget through use of reserves, spending cuts and/or increased revenue.
Governor Inslee will release his proposed 2021-2023 operating budget in December based on the November 18th forecast, which will kick-off the biennial budgeting process. State legislators will convene for the 2021 legislative session on January 11th, where they will be tasked with passing a final biennial budget by the end of the 105-day session. The next state revenue forecast is scheduled for March 20, 2021.