WA Revenue Forecast–$421M Defecit Looming for 2025-27

WA state Senate Republicans are reacting to the latest revenue forecast projection for the state, and it is not looking good.

  WA GOP says massive spending and tax hikes responsible

The massive $9 billion dollar tax hike signed into law by Governor Ferguson this spring is largely being eaten up by projected spending programs, new programs, created by the majority party.  Other funds are going to expand some current programs, so it's not like WA state is taking in 'new' revenue.  The $9 billion is, in simple terms, already accounted for.

Now this week,the latest state revenue forecast (incoming taxes, fees etc.) show the state is looking at a shortfall of anywhere from $413 to $425 million for the two-year biennium or budget cycle 2025-2027.

According to Senate Republicans:

"The third-quarter predictions from the state’s chief economist have revenue collections for the 2025-27 operating-budget cycle falling $412 million from June’s second-quarter forecast – which in turn was down from the year’s first forecast, in March. They also include a $13 million reduction associated with the previous budget."

This is the deficit for the current budget, but when you combine that with lower projections for the 2027-2029 period, the state could be facing a budget shortfall of $1.2 billion dollars by 2030.

Senate Republican leaders, including Senator Chris Gildon of Puyallup, say the fact the budget is already underwater shows how off-base the Democrats' spending priorites are. He also said:

“I just saw a federal-level report that showed a family of four in Washington paid $5,276 more annually to state and local governments than a family in the average state – and that was based on 2023 census numbers, before the record tax increases of 2025."

State Republican legislators and other critics and observers are worried this shortfall will be used as an 'excuse' for Dems to call for even more tax hikes during the 2026 short legislative session which begins in January.

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During the 2025 session, Senate Republicans had proposed a budget that would not raise taxes, and leave the state in the black financially, but it was rejected by the Democrat majority.