The Driver Behind Washington State’s Budget Shortfall

Earlier this month, state officials reported that the operating budget faces a $10-12 billion deficit over the next four years. Unlike during the Great Recession, the budget deficit isn’t due to a decline in revenue, as many of the state’s tax collections are at record levels while other new taxes have been imposed. Although the state Economic and Revenue Forecast Council recently lowered expected revenue for the current and next biennium by $270 million, the state Department of Revenue reports that all state taxes generated $35.4 billion for the fiscal year 2023, a 5.8% increase from the 2022 fiscal year. In that timeframe, the state sales tax revenue increased by 6.2%, while revenue from that has doubled since 2014, from $8 billion to almost $16 billion. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.